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Single Stream, What’s the Future?. Smurfit Stone Container Corp. Santa Clara Mill Dick Johnston General Manager. What Does My Mill Make?. 135,000 tons per year of 100% recycled Consumer Packaging Paperboard Clay Coated for Printing You buy it as a Cereal Box or a Tissue Box.
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Single Stream, What’s the Future? Smurfit Stone Container Corp.Santa Clara Mill Dick Johnston General Manager
What Does My Mill Make? • 135,000 tons per year of 100% recycled Consumer Packaging Paperboard • Clay Coated for Printing • You buy it as a Cereal Box or a Tissue Box
What’s Important? • Fiber Cleanliness for Consumer Packaging • A minimum of Throw Outs so we don’t overwhelm the cleaning system • Minimize Wax, Oils, Plastics, Metal (In that order)
What is a Given • The Asian Pacific Wastepaper Market sets the price of wastepaper on the West Coast • China’s demand for Wastepaper will continue to grow while domestic production is shutdown • This results in a Loss of High paying manufacturing jobs • Energy Costs will continue to climb
What’s Given Continued • Freight costs will become a bigger factor in final cost of all products. • Today’s US Paper Manufacturers are challenged to get enough capital to be able to clean the high level on contamination in Single Stream Collections • Land Fill costs are moving from the collection to the manufacturing
What Could Happen • What if China and the US should get into a trade dispute? Where do we sell all this Single Stream Material? • China could become more restrictive on the % throw outs pushing separation costs back in the collection stream • Lower Pricing of European’s single stream material can upset movement of US material
Options • Do nothing • State offer Grants, Low Interest Loans or Investment Tax Credits to help offset the capital costs of better separation and cleaning systems. • Repeal the 50% diversion rate and go back to pushing source separation.