MANUFACTURING FROM
          RECYCLABLES
24 CASE STUDIES OF SUCCESSFUL ENTERPRISES

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                              ACKNOWLEDGMENTS

              Manufacturing from Recydables:  24 Case Studies of Successful Recycling
           Enterprises  was prepared under U.S. Environmental Protection  Agency
           (EPA) grant number X-819163-01-0 by the Institute for Local Self-Reliance
           (ILSR).  ILSR is a  nonprofit research and educational  organization that
           provides technical assistance and information to city and  state government,
           citizen organizations, and industry.  Since 1974, ILSR has researched the
           technical feasibility and commercial viability of environmentally sound, state-
           of-the-art technologies with a view to strengthening local economies.  The
           Institute works  to involve citizens, government, and private enterprise in
           the development of a comprehensive materials policy oriented towards ef-
           ficiency, recycling, and maximum utilization of renewable energy  sources.
           ILSR  research  staff for  this report included Michael Lewis, Timothy W.
           Swope, Bhushan Tuladhar, Daniel Sapon-Borson, Taraneh Stallings, and Tom
           Martin. Additional assistance was provided by David Morris, Neil Seldman,
           Brenda Platt, Cynthia Aldridge, and Hannah Holmes.  U..S. EPA partici-
           pants included Kim Carr and Ellen Pratt.  ILSR extends their thanks to all
           of the contacts in the manufacturing sector and the trade associations who
           participated in the study.

              For more information on the details of the 24 Case Studies, please
           contact ILSR at the addresses listed below.
 1313 Fifth St., SE, Suite 306
Minneapolis MN 55414-1546
      (612) 379-3815
     fax: (612) 379-3920
Institute for Local Self-Reliance
        National Office
        2425 18th St., NW
   Washington, DC 20009-2096
          (202) 232-4108
        fax: (202) 332-0463
101 North Broad St., 2nd Floor
 Philadelphia PA 19107-6502
       (215) 686-9242
     fax: (215) 686-9245

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TABLE OF CONTENTS
LIST OF FIGURES	iv
LIST OF TABLES	iv
ACRONYMS	vii
DEFINITIONS	ix

MANUFACTURING: THE CRITICAL LINK IN THE RECYCLING CHAIN	1
          BACKGROUND	1
          RECYCLING-RELATED MANUFACTURING	1
          RECYCLED-CONTENT PRODUCTS	2
          ECONOMIC DEVELOPMENT	2
          STIMULATING RECYCLING-BASED PRODUCTION	5
          CONCLUSION 	5

METHODOLOGY	,	7

CASE STUDIES	-	11
          ASPHALT:   CYCLEAN, INC./Los ANGELES BUREAU OF STREET MAINTENANCE	13
                     RECLAIM OF NEW JERSEY, INC	17
           GLASS:     OPTIMUM ART GLASS, INC	'.	22
                     OWENS-BROCKWAY	26
                     STONEWARE TILE COMPANY	31
           METAU    AMG RESOURCES CORPORATION	34
           PAPER:     AMERICAN CELLULOSE MANUFACTURING, INC	38
                     AMERICAN ENVIRONMENTAL PRODUCTS, INC	42
                     THE CHESAPEAKE PAPERBOARD COMPANY	46
                     FIBREFORM CONTAINER, INC	49
                     GARDEN STATE PAPER COMPANY, INC	52
                     HOMASOTE COMPANY	55
                     MARCAL PAPER MILLS, INC	58
                     OHIO PULP MILLS, INC	62
                     PAPER SERVICE LIMITED	66
                     SOMERSET FIBER/RECYCLING SYSTEMS CORPORATION	70
           PLASTIC:    COON MANUFACTURING	74
                     LANDFILL ALTERNATIVES, INC	79
                     POLY-ANNA PLASTIC PRODUCTS, INC	84
                     TURTLE PLASTICS COMPANY	89
                     WEBSTER INDUSTRIES	93
           RUBBER:    AQUAPORE MOISTURE SYSTEMS	97
                     PROCESS FUELS INC	100
           WOOD:    EVANITE FIBER CORPORATION	104
           CASE STUDY REFERENCES	108

 RESOURCES REGARDING MANUFACTURING FROM RECYCLABLES	112
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
in

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 LIST OF FIGURES
    FIGURE 1    RECYCLING MATERIAL FLOW— A CONTINUOUS SYSTEM	l
    FIGURE 2    VALUE OF ONP PRODUCTS AND JOBS GENERATED BY THEIR CREATION	3
 LIST OF TABLES
    TABLE 1    OPPORTUNITIES IN RECYCLING-RELATED MANUFACTURING	4


 CASE STUDIES INFORMATION TABLES

    ASPHALT  Cyclean, Inc/Los Angeles Bureau of Street Maintenance
              Table 2    Feedstock	14
              TableS    Process	14
              Table4    Product	15
              TableS    Economic	15

              ReClaim of New Jersey, Inc.
              Table 6    Feedstock	18
              Table?    Process	19
              TableS    Product	20
              Table 9    Economic	,	k	20

    GLASS     Optimum Art Glass, Inc.
              Table 10    Feedstock	.	....t	23
              Table 11    Process	:	23
              Table 12    Product	24
              Table 13    Economic	24

              Owens-Brockway
              Table 14    Feedstock	:....	27
              Table 15    Process	,.„	28
              Table 16    Product	".	'.	29
              Table 17    Economic	29

              Stoneware Tile Company
              Table 18   Feedstock	;	32
              Table 19   Process	32
              Table 20   Product	33

    METAL    AMG Resources Corporation
              Table 21   Feedstock	35
              Table 22   Process	36
              Table 23   Product	37
              Table 24   Economic	37
iv
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                         - LIST OF TABLES
      PAPER     American Cellulose Manufacturing, Inc.
                 Table 25    Feedstock	•	39
                 Table 26    Process	•	-"39
                 Table 27    Product	•	•	<•	•	40
                 Table 28    Economic	•••••	41

                 American Environmental Products, Inc.
                 Table29    Feedstock....	43
                 Table 30    Process	44
                 Table 31    Product	44
                 Table 32    Economic..,	•	-"45

                 The Chesapeake Paperboard Company
                 Table 33    Feedstock	•	47
                 Table 34    Process	47
                 Table 35    Product	•	•	48
                 Table 36    Economic	•	•	•	•••••?	•	48

                 Fibref orm Container, Inc.
                 Table 37    Feedstock	•	50
                 Table 38    Process	••	«	50
                 Table 39    Product	•	•	51
                 Table 40    Economic	•»•»	•••••	•	•	51

                 Garden State Paper Company, Inc.
                 Table 41    Feedstock...	53
                 Table 42    Process	•	53
                 Table 43    Product	•	54

                 Homasote Company
                 Table 44    Feedstock	•	56
                 Table 45    Process	•••••	•	•	56
                 Table 46   Product	»;	»»	•	•	57

                 Marcal Paper Mills, Inc.
                 Table 47   Feedstock	,	»	••••••-	59
                 Table 48   Process	60
                 Table 49   Product	•	•	61
                 Table 50   Economic	•	61

                 Ohio Pulp Mills, Inc.
                 Table 51   Feedstock	63
                 Table 52   Process	•	63
                 Table 53   Product	?	•	64
                 Table 54   Economic	•	65

                 Paper Service Limited
                 Table 55   Feedstock	67
                 Table 56   Process	•	67
                 Table 57   Product	68
                 Table 58   Economic	•	69
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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  - LIST OF TABLES •
           Somerset Fiber/Recycling Systems Corporation
           Table 59   Feedstock	71
           Table 60   Process	f	71
           Table 61   Product	,	72
           Table 62   Economic	73

 PLASTIC   Coon Manufacturing
           Table 63   Feedstock	75
           Table 64   Process	76
           Table 65   Product	,	77
           Table 66   Economic	,	77

           Landfill Alternatives/ Inc.
           Table 67   Feedstock	80
           Table 68   Process	80
           Table 69   Product	82
           Table 70   Economic	82

           Poly-Anna Plastic Products, Inc.
           Table 71   Feedstock	85
           Table 72   Process	86
           Table 73   Product	87
           Table 74   Economic	88

           Turtle Plastics Company
           Table 75   Feedstock	90
           Table 76   Process	91
           Table 77   Product	91
           Table 78   Economic	92

           Webster Industries
           Table 79   Feedstock	94
           Table 80   Process	94
           Table 81   Product	95
           Table 82   Economic	95

RUBBER   Aquapore Moisture Systems
           Table 83   Feedstock	98
           Table 84   Process	,...98
           Table 85   Product	99
           Table 86   Economic	99

           Process Fuels, Inc.
           Table 87   Feedstock	101
           Table 88    Process	101
           Table 89    Product	102
           Table 90    Economic	,	103

WOOD    Evanite Fiber Corporation
           Table 91    Feedstock	105
           Table 92   Process	,	105
           Table 93   Product	106
           Table 94   Economic	107

                                Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                              ACRONYMS
ABS
ACM
AEP
AFT
ASTM
Btu
C&D
CEO
CFC
CPO
EPA
EPS
F
FDA
GSP
HCFC
HDPE
HGD
HIPS
ILSR
IPC

kW
kWh
LDPE
LLDPE
MCF
MSW
MVRM
NA
acrylonitrile butadiene styrene
American Cellulose Manufacturing, Inc.
American Environmental Products, Inc.
advanced fiber technology
American Society for Testing and Materials
British thermal unit, a measure of energy
construction and demolition debris
chief executive officer
chlorofluorocarbon
computer printout
U. S. Environmental Protection Agency
expanded or foam polystyrene
Fahrenheit
Food and Drug Administration
Garden State Paper Company
hydrochlorofluorocarbon
high density polyethylene
high grade deinking
high-impact polystyrene
Institute for Local Self-Reliance
intermediate processing center, also known as material recovery
facility (MRF)
kilowatt, a unit of energy
kilowatt-hour, a unit of energy consumed
low density polyethylene
linear low density polyethylene
million cubic feet
municipal solid waste
mechanical volume reduction machine
not available
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                          vii

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     -ACRONYMS •
 O&M
 O-B
 O-I
 OCC
 ONP
 P&W
 PDM
 PE
 PET
 PP
 PS
 PVC
 RAP
 RDF
 RSC
 RUMAC
 SBM
 SCS
 SOTA
 STC
 TPD
 TPY
 UBC
 VRM
 OMG
 operating and maintenance
 Owens-Brockway
 Owens-Illinois
 old corrugated containers
 old newspapers
 printing and writing paper
 Pressurized Deink Module
 polyethylene
 polyethylene terephthalate
 polypropylene
 polystyrene
 polyvinyl chloride
 reclaimed asphalt pavement
 refuse derived fuel
 Recycling Systems Corporation
 rubber-modified asphalt concrete
 scrap-based manufacturing
 Scientific Certification Systems
 state-of-the-art
 Stoneware Tile Company
 tons per day
 tons per year
 used beverage container
 volume reduction machinery
 old magazines
Viii
Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises

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                                                                               DEFINITIONS
abc rubble
acrylonitrile butadiene styrene

aggregate

asphalt

asphalt concrete hot-mix

bag paper
beneficiation
bimetal container
bleaching

blow molding

bond
 book paper

 boxboard

 bristol

 construction debris

 corrugating medium

 cover
Asphalt, brick, and concrete rubble.
A family of thermoplastics used to produce durable goods such as
appliances, automobile parts, and telephone casings.
Sized materials mixed with binders, either asphalt or cement, to form
concrete.
A heavy petroleum product refined to provide specifically engi-
neered characteristics. Approximately 80 percent of the asphalt
consumed in this country is used in pavements.
A mixture of approximately 5 percent asphalt with 95 percent
aggregate heated to about 300 degrees F. Hot-mix is used to pave
the top layers of asphalt pavements.
Type of paper used in the manufacture of paper bags.
The process of cleaning cullet of contamination.
A steel beverage container with an aluminum top.
The process of purifying and whitening pulp by chemical treatment
to remove or change existing coloring material.
A process in which air is blown into a piece of molten plastic,
pressing the plastic against the inside of a mold to shape it into a
hollow form. Used to make bottles from HDPE and PP.
A class of printing and writing papers made from bleached chemical
wood pulps and/or bleached waste paper, often blended with cotton
fibers. It is used for the printing of bonds, stock certificates, legal  ,
documents, and business letterheads, and other end uses requiring
high quality paper.
A group of coated & uncoated papers suitable for printing books,
magazines, brochures, and other general printing applications.
Paperboard used to make folding cartons & setup (rigid) boxes such
as cereal boxes and milk cartons.
A class of heavy weight papers used for graphic communications.
 End uses include file folders, greeting cards, tags, and soft bound
book covers.
 Scrap material derived from the construction of commercial and
 residential structures.
 Paperboard that is used to form the fluted inner layer in a corrugated
 container. The medium is produced in rolls and then shaped into a
 continuous rolling wave (flutes) by a corrugating machine.
 A grade of heavy weight paper used as covering for books, reports,
 catalogs, and magazines.
 Manufacturing from Recyclable?: 24 Case Studies,of Successful Enterprises
                                                             IX

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     -DEFINITIONS •
 cullct
 deinking

 demolition debris
 detinning
 dispersion
 dunnage
 expanded polystyrene
 extrusion
 feedstock
 ferrous
 fiber

 fibreboard
 plastic flake
 flint
 flotation
 gaylord
 glass tile
 hardboard
 high density polyethylene
high grade deinking
 Crushed scrap glass.                                            :
 A process which removes inks and contaminants from waste-
 paper employing one or a combination of mechanical, chemical,
 enzymatic, or thermal treatments.
 Scrap material derived from demolition of commercial and residen-
 tial strucutures.
 The process of chemically separating tin from tin-plated steel.
 The process of removing ink by dispersing it into particles small
 enough to become invisible.
 Packing material used in the protection of products during ship-
 ment.
 Foam polystyrene. Used to make products such as fast food contain-
 ers, cups, packaging materials, and building insulation.
 The process of forming a product by forcing molten material through
 a die.
 Raw materials required for an industrial process
 Metals containing iron, such as steel.
 Thread-like structures, usually derived from plants, used for paper-
 making & other uses. Fibers can also be derived from animal,
 mineral or synthetic sources.
 Lightweight wallboard used for thermal and acoustical insulation.
 Plastic that has been ground into  small chips, generally between 1/4
 and 1/2 inch in size.
 Clear glass.
 The process of removing ink from wastepaper by causing ink
 particles to adhere to the air bubbles and rise to the surface as froth.
 A corrugated container with capacity to hold 32 cubic feet (240
 gallons) of material.
 Tile in which glass is integrated with clay material.
 Construction paneling material made from reconstituted wood fiber.
 Polyethylene in which the ethylene molecules are linked in long
 chains with few side branches. HOPE is more rigid than LDPE, and
 has greater strength, hardness, and chemical resistance. Examples of
 products made from HOPE include milk jugs, detergent bottles,
 certain kinds of grocery sacks, and garbage containers.
 Printed waste paper made from bleached chemical pulp, suitable for
 processing to remove inks and other contaminants for use in making
recycled paper products, including high quality printing and writing
paper.
                                    Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                   - DEFINITIONS -
high-impact polystyrene

hydrapulper/pulper

hydromulch
injection molding

intermediate processor

kaofin

linear low density polyethylene

linerboard

low density polyethylene


market pulp
mixed paper
molded pulp

newsprint

offset

paper converting

pelletizing

 plastic

 plastic lumber

 poly-coated paper
Polystyrene to which rubbers have been added to increase the ability
of the material to absorb impacts.
A machine used to break up and def iber purchased pulp or waste
paper in water to form a slurry.
Paper-based mulch that uses water in its application.
A process of forming a product in which molten plastic is forced into
a mold. Used to make a variety of products, including bottles from
PETandPVC.
A facility that receives material, often from an IPC, and processes it
into feedstock suitable for an end product manufacturer.
Sludge that consists of rejects from the various cleaning operations
and wastewater treatment. It is approximately 50 percent clay from
coated papers, and 50 percent short unusable fibers.
Similar to LDPE, but with only short side branches. LLDPE is
manufactured at lower temperatures than LDPE.
A type of paperboard used as the inner and outer surfaces of corru-
gated board. Corrugating medium is sandwiched between layers of
linerboard.
Polyethylene in which the ethylene molecules are linked in a random
fashion, with the main chains of the polymer having long and short
side branches. LDPE is used for both rigid containers and plastic
film applications.
Pulp sold on the open market as a product.
A broad category consisting of various grades of waste paper.
Paper pulp molded into desired form. Used for nursery items, egg
cartons, and packing material.
A grade of paper containing high percentages of ground wood pulp,
made specifically for use in the printing of newspapers.
A coated  or uncoated paper made with the characteristics most
suitable for use in offset printing.
The process in which the rolls of finished paper are cut and con-
verted into finished products.
 A process in which molten plastic is extruded through a die into
 small pellets.
 Any of a large group of materials containing carbon, hydrogen, and
 other elements which can be formed into products using heat and
 pressure.
 An alternative to pressure treated wood, manufactured from various
 plastics.
 Polyethylene coated boxboard used to make milk and juice cartons.
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                              XI

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 	DEFINITIONS	

 polyethylene



 polyethylene terephthalate



 polymer



 polypropylene



 polystyrene



 polyvinyl chloride


 post-consumer


 pre-consumer




 printing and writing



 pulp


 pulp substitutes
pulper/hydrapulper


pulping


pyrolysis


recyclable

recycled content
 A polymer made from ethylene gas and produced in a range of
 densities.  The most common type of plastic resin, PE is translucent
 in its natural state and has a waxy consistency.

 A thermoplastic material used to manufacture plastic soft drink
 containers and other rigid containers. PET has a high melting point,
 is clear in its natural state has a relatively high density.

 A compound of high molecular weight made by combining many
 smaller molecules.  The smaller molecules are linked by polymeric
 bonds.

 A polymer formed by linking propylene molecules.  PP has good
'resistance to heat and is used in flexible and rigid packaging, film,
 and textiles.

 A polymer formed:by linking styrene molecules. PS is used to make
 a variety of products including plastic cutlery and food containers.
 It is often used in its foamed state (see Expanded Polystyrene).

 A family of co-polymers, also known as vinyl. PVC is used to make
 products such as pipes, bottles, upholstery, and automotive parts.

 Recovered materials that have passed through their end-usage as a
 consumer item (derived from RCRA of 1976 - Section 6002).

 Scrap material that has not been utilized by the end consumer
 (derived from RCRA of 1976 - Section 6002). Materials recovered
 from waste generated through mining, manufacturing, and convert-
 ing processes.

 A broad category of coated and uncoated papers for  such uses as
 photocopying, printing books, magazines and catalogs, and station-
 ary.

 A slurry consisting primarily of water and fibers which is used to
 make paper and other products.

 The highest quality of waste paper available, generally consisting of
 completely unprinted scrap paper mostly generated by the mills and
 converters. Clean, unprinted or lightly printed waste paper that can
be reused directly in the papermaking process with little or no
preparation, such as envelope cuttings.

A machine used to break-up cellulostic material into  a slurry of fiber
and water.

The process where fiberous materials are mixed  with water to form a
slurry for use in making paper and other products.

A process in which material, such as rubber, plastic, or paper, is
subjected to intense heat in the absence of oxygen.

Material which is capable of being processed for subsequent use.

The amount of secondary material in a product, expressed as a
percentage of total feedstock used.
Xii
Manufacturingjxpm Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                   -DEFINITIONS
recycled

recycling

regrind

resin

rotational molding
scrap material
scrap-based manufacturing

therm
tipping fee

tissue

urban wood waste

value added

vinyl
Material which has been reclaimed from the waste stream and
rernanufactured into a new product.
The process by which materials otherwise destined for disposal are
collected, reprocessed or rernanufactured, and reused.
Plastic products that have been reclaimed by shredding and granu-
lating.
The polymeric chains that are the basic building blocks of plastic
products.  While often used as a synonym for plastic, a plastic
includes resin and additives such as colorants and impact modifiers.
A process in which plastic powder or liquid is placed in molds
which are then rotated while being heated. The rotation coats the
inside of the mold with molten plastic, which then cools in the shape
of the mold. Used to make large, hollow products such as garbage
containers.
Discarded waste material suitable for reprocessing.
An industrial process where part of the waste stream is used as raw
material.
A measure of energy, equivalent to 100,000 Btu.
Fee charged to haulers for delivering material at recovery or disposal
facilities.
Thin, low weight paper used to manufacture such items as sanitary
products, and wrapping material.
Wood material recovered from an urban source such as wooden
pallets, packing crates, and wooden utility spools.
Dollar amount added to a ton of material by a manufacturing
process.
See polyvinyl chloride.
 Manufacturing from Recydables: 24 Case Studies,of Successful Enterprises
                                                            xiii

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                                                                  INTRODUCTION
   MANUFACTURING:   THE CRITICAL LINK
                                IN THE  RECYCLING  CHAIN
BACKGROUND
   Reduce, reuse, recycle. After the landfill clos-
ings and,incinerator moratoriums of the 1980s, the
three Rs of solid waste management are becom-
ing ingrained in the American psyche.  But after
reducing waste and reusing what is possible, what
exactly is recycling?  Setting bottles, cans and
newspapers at the curb? Driving them to the local
recycling center? Maybe buying stationery with
recycled content?  Yes, but these are only parts
of the whole, only links in the recycling chain.

   Communities first understood recycling as the
collection of  materials.  Later, the intermediate
processing center was recognized as an integral
part  of the whole, and more recently "buy re-
cycled" campaigns have added  to the growing
definition of recycling. Now as recycling assumes
a prominent  role in  municipal infrastructures, it
must be  understood as  it  exists — an entire
system.  Material — whether paper or plastic,
glass or metal — is not recycled until it flows
through the complete recycling process (as out-
lined in Figure 1). After a consumer's  purchase,
material is collected, sorted,  and compacted for
transportation. Material is shipped via rail, barge
or truck to a manufacturer who turns the resource
into  a new product.  The new product then fol-
lows the  normal channels of commerce through
a retailer  back to the consumer.  While interme-
diate stages, such as an additional processor or a
wholesaler, may exist, the critical issue is that each
link  in the chain must be strong for the system
to thrive.

RECYCLING-RELATED

MANUFACTURING
    The unsung hero in this scenario, however, is
the  recycling-related manufacturer.  This opera-
tion makes new products using part of the waste
stream as feedstock.  For example, a recycled
paper mill uses old newspaper to make new
newsprint, and a steel mini-mill utilizes scrap steel
in place of virgin ore. Because they provide mar-
kets for collected recyclables, scrap-based manu-
facturers allow recycling to exist.

   In addition to reducing dependence on burn
and bury facilities, the recycling-related manufac-
turer offers a community local economic develop-
ment potential. In fact, manufacturers of recycled
products hold a majority of the economic pay-off
of the entire recycling process. Adding to the jobs
and revenue that recycling collection and process-
ing bring to an area, manufacturers of recycled
products provide high-skill industrial jobs and
sizable sales revenue to a community. These new
factories hold the potential  to  revitalize a
community's industrial sector, while diminishing
               manufacture
                 collection
      Figure 1:  Recycling Material Flow
           A Continuous System
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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     • MANUFACTURING: THE CRITICAL LINK IN THE RECYCLING CHAIN
 the local waste stream and buying locally-derived
 feedstock.  These factories also preserve some of
 the  value  that has been added  to the material
 through the original manufacturing process  —
 value that would otherwise be destroyed through
 disposal.

    Often smaller than virgin-based mills, a scrap-
 based manufacturer tends to locate near sources
 of feedstock.  In fact, manufacturing of recycled
 products offers a community the opportunity of
 self-reliance, as manufacturing feedstock is mined
 from a  local source —  the community recycling
 collection progams.  In  addition to the economic
 gains that  new factories bring to a  community,
 manufacturers of recycled products offer environ-
 mental  benefits as well. Scrap-based enterprises
 require  less energy, water and natural resources,
 and create less solid waste, air and water pollu-
 tion than their virgin-based counterparts in nearly
 every case.  Additionally, users of recycled feed-
 stock reduce the need for, and the  adverse impacts
 of, mining and harvesting virgin feedstock.
RECYCLED-CONTENT PRODUCTS
    The current generation of manufacturers are
only the pioneers, explorers who have scarcely
scratched the surface of recycling's economic po-
tential.  These manufacturers demonstrate that
secondary materials can replace a large number
of the  virgin raw materials currently used in this
country.  Table 1 shows numerous possibilities in
scrap-based manufacturing.  All the different
products listed in the table are currently being
made from recycled material. As processing and
manufacturing technologies improve and demand
for recycled products increases, this list will only
expand.

    For the purpose of this report, "recycled con-
tent" is defined as the amount by weight of scrap
used divided by the  amount of total feedstock
used to manufacture a product.
ECONOMIC DEVELOPMENT
    Recycling systems, brought on-line over the
past decade have diverted millions of tons of
resources from disposal; however, fluctuations in
market prices have meant unreliable revenue for
these programs.  To  offset these market fluctua-
 tions, communities must work to capture a greater
 portion of the economic benefits derived from
 recycling. It is through remanufacturing of recov-
 ered material that communities stop viewing solid
 waste as a disposal burden and begin seeing it as
 an economic opportunity.

    Instead of offering financial incentives  to vir-
 gin-based industries, communities can attract
 scrap-based manufacturers by promising a steady,
 clean supply of low-cost feedstock. In return,  the
 manufacturer of recycled products will turn what
 once  was a liability into an asset, creating jobs,
 adding to the local tax base, and contributing to
 the growth of the local industrial sector.

    Manufacturers of recycled products, like all
 industrial facilities, assist communities by provid-
 ing jobs and generating taxable revenue. The
 remanufacturer, however, creates these benefits
 not through processing virgin material, but by
 adding value to material already at hand. Jobs
 which these facilities provide and revenue  which
 they generate  (in the form of sales) are easy to
 measure, yet a full understanding of these eco-
 nomic benefits requires careful examination. The
 following scenario serves as an example of how
 a scrap-based manufacturer adds value to "waste,"
 and how benefits accrue in the surrounding com-
 munity.

    A metropolitan area of 3 million people with
 an effective recycling collection system gathers
 100,000 tons per year of old newspaper (assum-
 ing 155,000 tons are available,1  and a state-of-the-
 art recovery rate of 64 percent2). With this mate-
 rial a city can follow  one of two  scenarios. The
 first option is to export the paper to a distant end
 market, while the second one is to utilize it as a
 local economic  resource.

    Choosing the second scenario, city officials
 work  to attract a manufacturer that uses recycled
 feedstock — in this case a newsprint  mill — to
 the town.  This new plant will generate 220
 manufacturing jobs (averaging an hourly wage of
 $12.60 per hour3), and contribute approximately
 $57 million annual gross revenue to the local tax
base (figures based on existing plants in the U.S.).
 Additionally, the mill will save its host commu-
nity $4 million a year in avoided disposal costs
by diverting 100,000 tons of paper from the  waste
stream (assuming a $40 per ton tipping fee).

   Figure 2 displays the value of old newspaper
(ONP) at three points in the recycling loop, as well
                                    Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

-------
                                                                              -INTRODUCTION
as the workers required to arrive at each stage.
Collected ONP is worth little, in fact many com-
munities pay mills to accept it. An intermediate
processing  center (IPC,  also known as a material
recovery facility or MRF) charges a $5  per ton
tipping fee to  a public or private hauler.  The
processor sorts and bales the paper, and sells it
to the new mill for  $15 per  ton.  At this stage,
the processor has added $20 to the value of the
material. Once it is manufactured into newsprint,
however, the  material sells for  $570 per ton.
Communities  that rid themselves  of recycled
material before manufacturing deprive themselves
of capturing future value added by the manufac-
turer of recycled products.
      It is  important  to note that the  "value
added" does not directly indicate  revenue recov-
ered  by the city,  however,  it does correlate to
funds spent on jobs and services, which  in turn
translates into  taxable revenue.  When a manu-
facturer adds value to any material, it does so by
means of labor and capital.   When a scrap-based
manufacturer adds value to a scrap material, the
effect is magnified since the  value is added to a
former burden on the community. For this rea-
         son the term "value added to scrap" is used for
         this measurement of economic development po-
         tential.  A full explanation of value added is
         contained in the Methodology Section.
            In addition to value added, jobs created by
         manufacturing facilities provide an indication of
         economic development opportunities.   The col-
         lection of recyclables employs approximately 30
         people for every 15,000 tons of ONP collected per
         year.4 Processing will require an additional ten,5
         and the newsprint mill will create 35 more jobs
         for every 15,000 tons processed annually.  Again,
         with nearly half of the recycling system jobs
         existing at the manufacturing stage, it is the manu-
         facturer of recycled products who adds substan-
         tially to the local economy.

            Recycling of ONP is by no  means limited to
         new newsprint as a product. Other products such
         as molded pulp packaging, cellulose building
         insulation and animal bedding all add value to
         ONP. Each product is manufactured by a sepa-
         rate process that adds a different amount of value
         to the recycled material.  Figure 2 illustrates these
         differences.
    Figure 2;  Value of ONP Products and Jobs Generated by their Creation
                600 -
z
                                               $570
         newsprint
                                                       $310-
             molded
             pulp
             products
                 cellulose
                 building
                 insulation
                                                                  animal
                                                                -| bedding
                                                                           -75
                                                                           -50
                                                                           - 25
o
o
o
in
                                                                                  c«  =
                                                                                  m -o
                                                                                  «  §
                                                                                  »-,  Q-
1^
CD
                                                                                  .0
                                                                                  o
                        collected   processed
                          ONP       ONP
     end products
 ONP Is old newspaper.
                                                                  Source: Institute for Local Self-Reliance, Washington, DC 1992
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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   MANUFACTURING: THE CRITICAL LINK IN THE RECYCLING CHAIN
Table 1:   Opportunities In Recycling-Related Manufacturing
  recyclable materials
  ASPHALT
  reclaimed brick and concrete
  reclaimed asphalt pavement
  roofing shingles

  GLASS
  color sorted container cullet

  mixed container cullet

  plate cullet


  METAL
  tin plated steel
  steel
  aluminum
  other metals

  PAPER
  puip substitutes
  high grade deinking
  old newspaper

  old corrugated containers

  mixed paper


  PLASTICS
  PET


  HOPE

  LDPE

  PVC
  PS
  PP

  RUBBER
 whole tires

 split tires

 shredded tires
 ground rubber
 WOOD
 wood
sample products made from recycled materials

fill; road sub-base; aggregate; landfill cover
asphalt concrete hot-mix; road sub-base
pothole patch; hot-mix asphalt modifier
glass containers; art glass; fiber glass insulation; pressed glass;
tile; foam glass; aggregate; road sub-base; wastewater filter media
fiber glass insulation; pressed glass; tile; foam glass; aggregate;
road sub-base; wastewater filter media
plate glass; art glass; fiber glass insulation; pressed glass; tile;
foam glass; aggregate; road sub-base; wastewater filter media
tin and high grade steel; low grade steel
I-beams; sheet; cans; automobile parts; fasteners
sheet; cans; siding
pipes; additives; fixtures
printing and writing paper; tissue; paperboard; newsprint
printing and writing paper; tissue; boxboard
newsprint; boxboard; bag paper; tissue; cellulose insulation;
animal bedding; fiberboard; mulch
liner board; corrugating medium; bag paper; boxboard; tube stock; particle
board; fiberboard; animal bedding; molded pulp; pencils; packaging fill
printing and writing paper; tissue; boxboard; fiberboard; molded pulp;
animal bedding; roofing felt; ethanol

                               , ^ <          ,      -,,^v. 5 •> ^ASri^i
soda bottles; textiles and fibers for furniture, pillows, comforters, jackets,
sleeping bags and carpeting; packaging; shower stalls; paint brush handles;
packaging strapping; plastic lumber
detergent bottles; film bags; traffic cones; plastic cases; drainage
pipes; waste and storage containers; plastic lumber
trash bags; grocery bags; waste and storage containers;
polyethylene modified asphalt concrete
pipe; floor tiles; urinal screen; containers; packaging film
egg cartons; loose fill packaging; building insulation; trays; office supplies
battery cases; boxes; flower pots; brooms

                   	,„„«," 
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                                                                              -INTRODUCTION
STIMULATING RECYCLING-

BASED PRODUCTION
    Use of recycled material in manufacturing is
expanding within many industries.  Many state-
of-the-art manufacturers are driving industries to
higher levels of recycled content.  However,  as
should be expected with any major industrial shift,
scrap-based manufacturing is experiencing grow-
ing pains.  The main issues facing manufacturers
are (1) the availability of dean feedstock, (2) fi-
nancing  to construct new facilities, and  (3) de-
mand for their products.  Governments can go a
long way toward addressing some of these prob-
lems.

    Because of the profound  economic linkages
between feedstock supply, remanufacture, and
product  demand, the best government recycling
programs are those flexible enough to bring as-
sistance where it is most needed.  Depending on
the current supply-and-demand status of a spe-
cific material, the best application of program as-
sistance may be in either the  collection, process-
ing, shipping, manufacturing,  marketing,  or pur-
chasing stages of that materials' lifecycle. Flex-
ibility of such programs allows an opportunity to
establish market equilibrium in these early stages
of the recycling economy.

    With this in mind,  some states and localities
have begun to develop  recycling market-develop-
ment offices that track current conditions  and in-
tercede as needed.  These offices may administer
grant or loan programs, provide information to
procurement officials, offer technical assistance to
recycling businesses, develop consumer education
programs, or try to entice recycling businesses to
locate in their region.   In 1991 alone, seven such
entities were developed to coordinate public and
private market development activities.6   These
agencies may be able to help  scrap-based manu-
facturers locate feedstock, financing, and product
markets.
    One method states have used to direct mar-
ket development efforts is the creation of Recy-
cling Market  Development Zones  (RMDZ).
Would-be recycling enterprises are offered incen-
tives such as grants, loans, tax breaks or credits,
or technical assistance to lure them to an RMDZ.
To  qualify as a zone,  a local government must
submit applications to the state that are scored on
factors such as available material, plans to attract
and expand recycling businesses, local tax incen-
tives, and available real estate.  If a zone desig-
nation is awarded to the  local community,  then
the state may provide  low-interest finance loans
of up to $1 million.
CONCLUSION
    This examination of manufacturing from
recyclables demonstrates the benefits a community
can expect  from  localizing markets for its
recyclables. Each case study serves as an example
of recycling business adding to local economies.
Commanding the pinnacle of the recycling sym-
bol, the local manufacturer of recycled products
is the critical link in the recycling chain.
ENDNOTES
I. Characterization of Municipal Solid Waste in the United
  States: 1992 Update, U.S. EPA, July 1992.
2. Brenda A. Platt, Naomi Friedman, Carolyn Grodinsky and
  Margaret Suozzo, In-Depth Studies of Recycling and
  Composting Programs: Designs, Costs, Results, Volume
  HI: Urban Areas, Institute for Local Self-Reliance,
  Washington, DC, 1992.
3.1992 Lockzuood-Posfs Directory of the Pulp, Paper and
  Allied Trades, Miller Freeman Publications, San Francisco,
  California, 1991.
4. Brenda A. Platt, etal.
5.1992-93 Materials Recovery andRecyding Yearbook,
  Governmental Advisory Associates, Inc, New York, New
  York, 1992.
6. Jim Glenn, 'The State of Garbage in America," BioCyck,
  May 1992, page 34.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                     METHODOLOGY
      A wide variety of scrap-based manufacturers
   already operate in this country, and their num-
   bers  are increasing.  This growth is fueled by
   recycling collection programs, which generate a
   supply of discarded  material, and demand-side
   policies.  A study of  how these facilities operate
   will be of interest to people in many sectors: re-
   cycling coordinators can identify potential markets
   for their recovered materials; manufacturers will
   see improved feedstock quality from better edu-
   cated suppliers;  entrepreneurs can  gain insight
   into successful operations; and economic develop-
   ers can weigh the benefits a community might
   reap from such facilities.  From all perspectives,
   these facilities can be counted on for economic de-
   velopment, waste reduction and a cleaner environ-
   ment for the public.

      The 24 case studies contained here represent
   a sample of state-of-the-art scrap-based manufac-
   turers.  The selection process by which companies
   were chosen for the  study  is discussed below.
   Selection of  Manufacturers
      Initially, a  database of manufacturers that
   utilize recycled materials was compiled. From this
   long list of several hundred, the 24 case subjects
   were selected, based on the following criteria:

   1) Feedstock diversity:  The manufacturers chosen
     use a wide variety of materials from the waste
     stream.  All major sectors  are represented,
     while emphasis was placed on manufacturers
     using materials that account for a large percent-
     age of the waste stream.  For example, 11 of
     the 24 facilities use recovered paper, which ac-
     counts for 40 percent of MSW.

   2) High post-consumer and total recycled content:  The
     plants documented in the case studies use a
     higher percentage of post-consumer and total
     recycled content feedstock than most of their
     competitors.  For example, Owens-Brockway's
     glass bottles have a 54 percent total  recycled
     content with a 49 percent post-consumer con-
     tent, as compared  to the industry average of
     25 percent total recycled content.
3) High value products:  Operations that add the
   most value to their feedstock were preferred.
   For example, plants that make newsprint and
   cellulose insulation from ONP are favored over
   those producing lower-value animal bedding.

4) Use of low-value  or rarely-recycled materials:
   Many of the 25 manufacturers are pioneers in
   using low-value discarded materials that are
   generally ignored by other manufacturers. For
   example, Marcal Paper Mills uses low-grade
   mixed paper to make  high-value tissue prod-
   ucts.

5) State-of-the-art technology:  Processes that are a
   step up from the status quo were favored. For
   example, Cyclean, Inc.'s microwave technology
   allows it to make asphalt pavement from 100
   percent  recovered pavement.  The previous
   generation technology only permitted the use
   of about 25  percent reclaimed asphalt in new
   pavement.

6) Recycling level: Plants that recycle material back
   into its original form (primary recycling level)
   promote sustainability by closing the material
   flow loop.  For example, Patriot Paper Corpo-
   ration uses old office paper to  make new
   printing and writing paper (see  Definitions
   section for more  information).
Information Sources
    Information and numbers presented in the
case studies were either provided by the respec-
tive manufacturers, or were calculated by the
researchers based on published company informa-
tion or industry statistics.  Assumptions and cal-
culations are explained in table footnotes.  Every
effort was made to gather accurate, case-specific
data.  However, because of the  dynamic nature
of the industry, changing technology, and the pro-
prietary nature of private companies, not all in-
formation was readily available.  All manufac-
turers were provided the opportunity to verify the
accuracy of their respective case studies.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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       -METHODOLOGY
   Organization of the Case  Studies
      The case studies are categorized alphabetically
   according to the discarded material used at the fa-
   cility. Each study consists of seven sections: com-
   pany background, feedstock, process, products,
   economics, replicability and contacts.  The content
   of each of these sections is summarized below.
   Company Background
      This section presents a brief history of the
   plant and its use of discarded materials. It may
   also include information on the parent company,
   and  any special  recognition the company may
   have received for its  recycling efforts.


   Feedstock
      This section examines the raw material a plant
   uses, with an emphasis on the scrap component.
   It addresses issues related to sources, amounts,
   total recycled and post-consumer content of the
   feedstock, tolerance to contamination, and price
   paid for the feedstock. Frequently, the annual con-
   sumption of raw materials, along with the amount
   of post-consumer and total recycled content, will
   vary with consumer  demand for the products.
   The numbers presented are average figures as fur-
   nished by the respective companies, unless oth-
   erwise noted. Prices paid for scrap material fluc-
   tuate depending on the supply levels, location of
   the plant, and the quality of the material.  There-
   fore, prices are often reported as a range.  In the
   feedstock information table, the total recycled con-
   tent, post-consumer content and price paid per ton
   are weighted averages.


   Process
      In  this section, the manufacturer's process is
   outlined as the material flows through the  plant.
   Also included are the plant's capacity utilization
   factor,  information on its waste generation and
   disposal, employment figures, scheduled opera-
   tion, plant and warehouse size, and  water and
   energy requirements.  In some cases, details are
   lacking due  to  the  proprietary nature of the
   manufacturing processes.

      Formulas relevant to the process  section are
   as follows:
   capacity utilization factor=
production output rate

production design capacity
                                feedstock reject rate =
                      feedstock input rate -
                      production output rate

                      feedstock input rate
                               Products
                                   A profile of the finished products appears
                               under this heading. This includes annual produc-
                               tion rates, post-consumer and total recycled con-
                               tents, sales figures, value added to scrap materi-
                               als, and  geographical markets  for the products.
                               Product awards and certifications are also high-
                               lighted.

                                   Value added to a ton of scrap  feedstock by
                               the manufacturer (vas) is the value added referred
                               to in the text.  This calculation is explained be-
                               low. Two important factors are the recycled con-
                               tent and scrap  reject rate.
                                vas = contentp/s [ (1 - reject rates) pricep - costs 1
                               contentp^ = recycled content of product (%)
                                        = average percentage by weight of
                                          product that is recycled
                                        = F((inputs)(l - reject rates),(outputp))
                                         = input amount of scrap feedstock
                                          (tons, TPD, TPY, etc.)
inputs


reject rates
                                          scrap reject rate (%)
                                         ! percentage of scrap input that ends up
                                          in the waste output of the
                                          manufacturing process
                                        = outputw/s/inputs
                               outputw/s = amount of output waste that is from
                                          scrap input (matched to inputs units)
                                        = (outputw,t)(contentw/s)

                               outputw,t = amount of total output waste (matched
                                          to inputs units)
                               contentw/s= recycled content of waste output (%)
                                        = average percentage by weight
                                          of waste that is recycled
                               outputp  = amount of product produced
                                          (matched to inputs units)
                               pricep   = product price ($/ton)
                                                        costs
          < average price at which the
           manufacturer sells product
          : average price manufacturer pays
           for feedstock ($/ton)
8
            Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                 METHODOLOGV
   Economics
       This section explores costs and savings asso-
   ciated  with establishing and  operating a  scrap-
   based enterprise.  A table of  economic informa-
   tion provides a breakdown of costs, including
   initial capital outlay, and annual operating and
   maintenance, labor, energy and  feedstock costs.
   Cost per ton of production and sales per  ton of
   production figures are also included in this table.
   These figures were either provided  by manufac-
   turers  or  calculated by the researchers.   Initial
   capital cost figures should be  applied cautiously,
   considering circumstances such as the year a plant
   was built, mergers and takeovers, and the restart-
   ing of an idle  factory.   Policies and legislation
   affecting the economics of the scrap-based manu-
   facturer are discussed when applicable.
Replicability
    This section discusses the company's plans for
expansion, relocation, or licensing of its process.
It also addresses the availability of the technology
the plant uses,  and notes any patents that would
present an obstacle to  imitators.  Besides the
physical and financial conditions that would be
favorable to a plant, the limitations and obstacles
to locating a new facility are also addressed.
Contacts
    Here appear the name, address, and phone
number of persons to contact for additional infor-
mation.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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_

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                                                            CASE STUDIES
MATERIAL   CASE STUDY           '              LOCATION
ASPHALT   Cyclean, Inc./
           L.A. Bureau of Street Maintenance
           ReClaim of New Jersey, Inc.
                       PRIMARY PRODUCT
Round Rock, TX/LA, CA  asphalt concrete hot-mix
Kearny,NJ         -    asphalt paving material
GLASS     Optimum Art Glass, Inc.               Eaton, CO
           Owens-Brockway                     Portland, OR
           Stoneware Tile Company              Richmond, IN

METAL     AMG Resources Corporation           St. Paul, MN
                       colored sheet glass
                       glass containers
                       glass-bonded ceramic tile

                       detinned steel
PAPER    American Cellulose Manufacturing, Inc.
          American Environmental Products, Inc.
          The Chesapeake Paperboard Company
          Fibreform Containers, Inc.
          Garden State Paper Company, Inc.
          Homasote Company
          Marcal Paper Mills, Inc.
          Ohio Pulp Mills, Inc.
          Paper Service Limited
          Somerset Fiber/
          Recycling Systems Corporation

PLASTIC   Coon Manufacturing
          Landfill Alternatives, Inc.
          Poly-Anna Plastic Products, Inc.
          Turtle Plastics Company
          Webster Industries

RUBBER   Aquapore Moisture Systems
          Process Fuels, Inc.

WOOD    Evanite Fiber Corporation
Minonk,IL
Elkwood,VA
Baltimore, MD
Germantowny WI
Garfield,NJ
West Trenton, NJ
Elmwood Park, NJ
Cincinnati, OH
Ashuelot, NH

Cowpens, SC

Spikard, MO
Elburn, IL
Milwaukee, WI
Cleveland, OH  ,
Peabody, MA

Phoenix, AZ
Spokane, WA

Corvallis, OR
cellulose building insulation
cellulose products
boxboard
molded pulp packaging
newsprint
structural fiberboard
tissue
market pulp
tissue

paperboard

plastic sheet
PS pellets
recycling bins
floor mats, urinal screens
trash bags

soaker hose
polymer oil, fuel gas, steel

hardboard
Manufacturing from RecydaUes: 24 Case Studies of Successful Enterprises
                                            11

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                         CYCLEAN, INC./LOS  ANGELES
              BUREAU OF  STREET  MAINTENANCE
                    Location:

               Start-up Date:

        Recycled Material Used:

                   Products:

    Production Design Capacity:
Round Rock, Texas/Los Angeles, California

1987

reclaimed asphalt pavement

asphalt concrete hot-mix

     TPD
 COMPANY BACKGROUND
    Street-maintenance crews in Los Angeles,
 California remove over 250,000 tons of reclaimed
 asphalt pavement (RAP) from the streets each
 year.  Prior to 1987, the city's two asphalt plants
 recycled only 15 percent of this material into new
 pavement and landfilled  the remainder.  How-
 ever, anticipation of a landfill shortage led city
 officials to seek alternatives.

    Robert Nath, founder and chairman  of
 Cyclean, Inc. of Round  Rock, Texas, had ap-
 proached the city of Los Angeles in 1983.  After
 years of following the development of Cyclean's
 process, and hearing the technical, financial, and
 environmental arguments in its  favor, the city
 decided to have Cyclean bring its technology to
 town. In 1987, Cyclean was granted the right to
 use the city's RAP to make new asphalt concrete.
 The city  in  turn agreed to purchase  all  of
 Cyclean's hot-mix and put it back on the streets.
 Although production quantities were initially low,
 Los Angeles has used approximately 200,000 TPY
 of 100 percent recycled asphalt-concrete hot-mix
 in each of  the last three years. Plans for a sec-
 ond plant, in south Los Angeles, are now under-
                way.  The Los Angeles/Cyclean program was the
                recipient of Renew America's 1992 Environmen-
                tal Achievement Award.

                   Nath founded Cyclean, Inc. in 1985.  His in-
                novative technology uses microwaves to make
                paving material from 100 percent recycled asphalt
                concrete.   The recycled-content limit using con-
                ventional asphalt-recycling processes is about 25
                percent, primarily because of concerns about air
                pollution and safety.  The Cyclean process pro-
                duces minimal emissions, according to its manu-
                facturers.

                   Besides the highly successful program in Los
                Angeles, Cyclean has also completed work in
                Georgia, Michigan and Texas: in 1991 a project in
                Ashburn, Georgia cut the material cost in half by
                using 73,000 tons of RAP. The Texas Department
                of Transportation used 93,000 tons of RAP (with
                10 percent virgin  content) to pave 19 miles of
                Highway 1-35 E.  Michigan saved $500,000 on a
                three-mile stretch  with Cyclean pavement.
                Cyclean has  also taken its technology to the
                Netherlands, where one official said the product
                was "better than virgin hot-mix asphalt."
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                    13

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    •CYCLEAN, IncJLos ANGELES
  Table 2    Feedstock Information
                   consumption  recycled
         material        (TPY)   content
        reclaimed
 asphalt pavement
202,000     100%
post-consumer
       content

         100%
   price
paid/ton

   $0[a]
  [a] Cyclean pays nothing for the RAP. The city, however, saves
    approximately $3 per ton in avoided disposal costs.
                                                  quirements.  The city
                                                  Uses the rejected fine
                                                  particles, which account
                                                  for about one percent of
                                                  the incoming RAP,  as
                                                  backfill material.
                                             Source: Institute for Local Sell-Reliance, 1992.
FEEDSTOCK

    RAP is essentially Cyclean's only feedstock.
Cyclean recovers the asphalt & aggregate portions
and rejects roughly one percent of this, consist-
ing of fine particles generated
in the process of stripping old
asphalt  pavement  off  the
street.  With over 6,500 miles
of paved streets, Los Angeles
has the largest municipal
street system in the country.
Every mile requires  regular
stripping and repaving. The
City  currently  uses over
200,000 tons per year of repro-
cessed RAP, in approximately
80 percent of its maintenance
projects (Table 2).
                           The sized particles
                      are conveyed to a warm-
                      air drum dryer  that
                      heats the RAP to over
                      220° F.  This process
                      removes all moisture.  A
                      huge microwave  oven
then cooks the RAP for three minutes.  Seven
microwave generators allow the RAP to reach 300°
F without burning the asphalt. Following the mi-
crowave treatment, rejuvenating and anti-shipping
agents are added to the mix. A screw-type rib-
    Cyclean's  process also
uses a petrochemical rejuve-
nating agent,  and an anti-
stripping agent.  However,
these account for only  0.5
percent by weight of the total
mix.
PROCESS
    City crews stockpile old
asphalt  pavement near the
plant.  Cyclean  screens the
RAP to  remove  big chunks
and unwanted fines.  Over-
sized pieces are crushed and
sent back through the screen.
The desired particle size var-
ies according to site condi-
tions and the mix design re-
            Table 3    Process Information
                      recycling level:

                 feedstock input rate:
               production output rate:
           production design capacity:
             capacity utilization factor:
                 feedstock reject rate:
                    waste generated:

                   disposal methods:
                         equipment:
                        employment:
                 scheduled operation:
                   area requirement:
                          plant size:
                     warehouse size:
                  energy requirement:
                   water requirement:
                   primary

                   880 TPD [a]

                   870 TPD [a]

                   1,300 TPD [a]

                   67 %

                   1 %
                   fine gravel and asphalt mix

                   backfill material

                   screen, warm-air drum dryer,

                   7 microwave generators, mixer,

                   storage silos

                   5 full time
                   5 days per week; one shift per day

                   3.5 acres

                   21,780 square feet

                   none
                   30 million kWh per week of electricity

                   low
            [a] Source: Institute for Local Self-Reliance, 1992. Assumes plant operates
               230 days per year.
                                                                        Source: Institute for Local Self-Rellance, 1992.
14
             Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                       • ASPHALT-
    Table 4    Product Information
production
products
manufactured
asphalt concrete hot-mix
rate
(TPY)
200,000
total
recycled
content
100%
post-
consumer
content
100%
estimated
annual
sales
$3,000,000
gross
revenue
per ton
$15
value
added
per ton
$15
                                                                           Source: Institute for Local Self-Reliance, 1992.
 bon mixer stirs the materials and conveys them
 to a heated storage silo. The entire process takes
 approximately 10 minutes from start  to finish.

     The hot-mix is transported to the paving site
 and applied like  conventional  asphalt concrete.
 As the name implies, the mix must be hot when
 used — it cannot be stored or transported in an
 unheated truck for more than an hour. Thus, the
 plant can only provide paving for projects that are
 nearby.

     The Los Angeles Bureau of Street Maintenance
 and Cyclean meticulously monitor the quality of
 the hot-mix.  Cyclean has performed tests on four
 samples of the finished product  every day for the
 past five years.  In addition, tests have been per-
 formed on numerous 4-inch core samples cut from
 streets paved with the recycled hot-mix.

     More information on the process used in the
 Los Angeles plant is presented in Table 3.
          ECONOMICS
              The use of Cyclean technology saves Los An-
          geles roughly $2 million per year in disposal fees,
          virgin materials, and transportation. The Bureau's
          total street-maintenance budget is about $41 mil-
          lion per year.  Over the past five  years, the city
          has reduced  its use of virgin paving material by
          over 800,000 tons, saving approximately $8 mil-
          lion in materials  and disposal costs.

              At present, Cyclean  sells its product to Los
          Angeles at $15 per ton for up to 180,000 tons per
          year, and $10 per ton for any amount above that.
          Negotiations are under way for next year's con-
          tract, in which the price of the hot-mix will be $16
          per ton. This is approximately two-thirds the price
          of conventional hot-mix  in  the area.

              Although the  initial  capital  cost for a plant
          varies significantly with size and location, a plant
          similar to the one in Los Angeles requires an ini-
 PRODUCTS
     The Cyclean process produces 100
 percent hot-mix asphalt concrete that is
 on a par with virgin hot-mix. Hot-mix
 asphalt concrete consists of 5 percent
 asphalt and 95 percent aggregates, all
 heated to 300° F. The mix is used for
 paving the top surface of asphalt pave-
 ments.  According  to company repre-
 sentatives and the engineers at the Los
 Angeles Bureau of Street Maintenance,
 tests done in Los Angeles and Texas
 cannot discern any chemical or physi-
 cal difference between Cyclean's re-
1 cycled product and conventional, vir-
 gin asphalt concrete. Table 4 provides
 details on Cyclean's product.
Table 5
Economic Information
    initial capital cost:
           labor cost-
         energy cost:
      feedstock cost:
      total O&M cost:
      gross revenue:
 capital cost/capacity:
     O&M cost/sales:
 gross revenue/sales:
       $3,000,000 (1987)
       $140,000 to $200,000 per year
       $420,000 to $600,000 per year
       $0 per year
       $1,400,000 to $2,000,000 per year
       $3,000,000 per year
       $2,500 per TPD capacity
       $7 to $10 per ton sold
       $15 per ton sold
                                                                          Source: Institute for Local Self-Reliance, 1992.
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                     15

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    -CYCLEAN,
tial capital expenditure of $3 million. Operational
costs range from $7 to $10 per ton of asphalt con-
crete produced.

The most significant portion of the operation and
maintenance cost is the energy, at 30 percent. The
feedstock is free, and the cost of the rejuvenating
agent is minimal.  With just five workers, labor
accounts for 10 percent of the operating cost
(Table 5).
REPLICABILITY
    Cydean, Inc. holds the patent to the Cyclean
technology, and  is interested in building new
plants around the US. Plants of various sizes can
be built to accommodate project needs.  For small
individual projects or test projects, Cyclean can
build temporary plants on site which are mobile
and easy to set up.  For the Texas Highway I-
35 E project, Cydean was able to erect a plant and
begin production within two weeks of the comple-
tion of site preparation.
                   Cyclean Inc., in collaboration with the U.S.
               Army Corps of Engineers, is currently research-
               ing the possibility of using  its process to make
               hot-mix on the job site. This system would link
               up all the conventional and microwave equipment
               needed to recyde old asphalt in one continuous
               paving  train, significantly decreasing the logisti-
               cal, personnel and transportation costs.
                CONTACTS
                Richard Ford
                Cydean, Inc.
                1000 South 1-35
                Round Rock, Texas  78681
                512-244-2200
                512-244-2622 fax

                David A. Reed, Assistant Director
                Los Angeles Bureau of Streets and Fadlities
                200 North Main Street, Room 1500
                Los Angeles, California  90012
                213-485-5681
                213-620-9431 fax
 16
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                     RECLAIM OF  NEW  JERSEY, INC,
                     Location:
                Start-up Date:
        Recycled Material Used:
                     Products:


    Production Design Capacity:
Kearny, New Jersey

1988

asphalt roofing debris

asphalt paving material
pothole patch material
hot-mix asphalt modifier
350 TPD
COMPANY  BACKGROUND
   ReClaim of New Jersey, Inc. is the sole sub-
sidiary of ReClaim, Inc., a Tampa, Florida corpo-
ration founded in 1987 "expressly for the purpose
of reclaiming and  reusing non-hazardous, non-
toxic asphalt roofing scrap."  The company pro-
duces a number of asphalt based paving products
at two New Jersey plants: one in Kearny, the other
in Camden. The Kearny operation showcases the
second generation of ReClaim equipment, and
serves as the blueprint for future facilities.

   The  manufacture of paving products from
recovered asphalt roofing material is based on a
practice of shingle manufacturers, who for many
years used production scrap, called "tab-ends," as
paving material  for driveways and parking lots.
In the early 1980s ReClaim CEO, Jim  Hagen,
began investigating methods to turn roofing scrap
into a low-cost paving material for truck lots and
shipping yards.  In 1988 the company began
recycling operations  as ReClaim of New Jersey,
Inc.,  in Kearny.  Today, ReClaim is the only state
certified recycler of asphalt roofing material in the
nation.

   ReClaim executives chose New Jersey because
of the state's commitment to diverting resources
                 from incinerators and landfills. New Jersey's state
                 recycling program requires roofers and demoli-
                 tion-waste haulers to deliver a portion of their
                 demolition waste to certified recycling facilities. In
                 September 1989, Reclaim's Kearny plant was the
                 first facility to be certified as a "waste-diversion
                 recipient" by the New Jersey Department of En-
                 vironmental Protection.  Local governments, there-
                 fore" award "diversion credit" to haulers who take
                 recovered material to  ReClaim, as part of the
                 State's mandatory recycling program.  High tip-
                 ping fees ($115 per ton at Kearny-area landfills)
                 provide further incentive for haulers to take ma-
                 terial to ReClaim.

                    ReClaim has received several awards for its
                 efforts, including the 1992 Recycling Industry Out-
                 standing Achievement  Award, presented  by the
                 New Jersey Department of Environmental Protec-
                 tion and Energy; the 1992 Most Innovative Local
                 Market  Development Award from the National
                 Recycling Coalition; Keep America Beautiful 1992
                 Recycling Award for Business and Industry; and
                 a 1992 award  of "Special Merit" from Renew
                 America, a Washington, D.C.-based non-profit
                 organization that identifies model  operations
                 working to  "protect, restore and enhance the
                 environment."
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                         17

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    • RECLAIM OF NEW JERSEY, INC.
  Table 6    Feedstock Information
consumption
material (TRY)
commercial roofing
residential asphalt shingles
manufacturers' scrap shingles
total roofing scrap
48,600
30,800
1,600
81,000
recyc led post-consumer
content content
100%
100%
100%
100%
100%
100%
0%
98%
price
paid/ton
-$64
-$64
-$40
-$64
                                                                        Source: Institute for Local Self-Reliance, 1992.
FEEDSTOCK
    ReClaim of New Jersey, Inc. processes 300
tons per day of clean roofing scrap at its Kearny
facility (Table 6).  The feedstock is a mixture of
various roofing (from flat roofs) material, the com-
position of which changes daily.   However,
ReClaim estimates that approximately 60 percent
of the material arriving at the plant  is post-con-
sumer commercial built-up roofing, and 38 per-
cent is post-consumer asphalt shingles.  The re-
maining 2  percent is  post-industrial asphalt
shingles from a nearby shingle manufacturer.
The plant accepts material on site, but also main-
tains twenty drop sites within New Jersey.  From
the drop sites, ReClaim distributes material to its
two processing facilities.

    The New Jersey Department of Environmen-
tal Protection limits the amount of contamination
accepted at recycling  facilities, and can revoke a
facility's recycling  certification if that facility ac-
cepts loads with more than 2 percent contamina-
tion.  Therefore, ReClaim is careful about receiv-
ing anything but clean roofing scrap.   While
insulation (both foam and fiberglass) and nails do
not interfere with the ReClaim manufacturing
process and are not considered contaminants,
brick, plastics, wood and asbestos tile are consid-
ered contaminants. In addition to rejecting con-
taminated loads, ReClaim charges haulers $150 per
truckload for reloading contaminated material.

    In August 1992, ReClaim began adding quarried
aggregate to the reduced roofing material in production
of its pothole patch. Because the asphalt roofing is pro-
cessed before it is combined with the aggregate, the
new product increases production capacity of the fa-
cility without altering the parameters of the plant.
                Because it is added off-site, aggregate is not listed
                as a feedstock  in Table 6.
                PROCESS
                    The production process at Kearny is based on
                simple material reduction and is accomplished
                mainly  with two mechanical  volume reduction
                machines (MVRM) modified to  withstand the
                extreme wear caused by abrasive roofing scrap.
                ReClaim has succeeded with this process where
                other roofing asphalt processors have failed be-
                cause of the durable and cost-effective  MVRMs
                which they developed in-house.

                    As roofers unload material onto a receiving
                pile at the facility, workers inspect for contami-
                nants. A bucket loader mixes the pile and loads
                it into the first "muncher," a modified MVRM that
                reduces material to a less than 6-inch size. This
                feedstock then runs through a second muncher
                before it is screened to specified size,  dependent
                upon the end product.  Oversized pieces are
                returned to the muncher, and ferrous metals (i.e.,
                nails and wire) are magnetically  removed.

                    ReClaim uses reduced roofing material in one
                of two ways:  either marketing it as Econo-Pav®
                ground  cover, or further processing it into other
                products.  To make its pothole patch, RePave®,
                the company reduces the  material to pea-sized
                pieces and mixes it with crushed stone aggregate
                and a proprietary emulsion mix.   The  roofing
                material  and the  emulsion mix blend bind with
                the aggregate, creating a cold-mix asphalt patch.
                ReClaim mixes the material  in  a three-to-one
                mixture thereby producing four tons of patch for
                every ton of roofing  used.
18
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     . ASPHALT
    ReClaim currently uses a mixer at a separate
facility to combine the roofing material and stone
for RePave®, shipping the roofing scrap from
Kearny and  the finished product back to the
facility. The  company also mixes the material in
a facility adjoining the Kearny plant, significantly
increasing  production of RePave® (a projected
increase of 200 tons per day).
    Several major consumers of paving material
are currently testing Reclaim's third product,
ReActs HMA®, an asphalt "enhancer," and could
be  using the product early in 1993.  To make
ReActs®, ReClaim pulverizes the roofing material
to a talcum powder consistency after which it is
added to asphalt paving as a reinforced modifier.
    ReClaim  uses neither heat nor chemicals to
prepare these end products. The entire operation,
                    excluding the feedstock and product inventory, is
                    enclosed within a 5,000  square foot building.
                        The Kearny plant employs six workers full-
                    time: one operating the MVRM, one running the
                    loader, two sorting material inside, and two sort-
                    ing incoming loads. The plant operates two shifts,
                    five days per week (Table 7).  Because the facil-
                    ity is covered,  operations continue regardless of
                    weather.
                    PRODUCTS
                        In the four years since its inception, ReClaim
                    has produced over  150,000 tons of Econo-Pav®,
                    a low-cost pavement for industrial parking lots,
                    fleet vehicle equipment yards, maintenance roads
                    along railways, access roads to  landfills, and for
  Table 7    Process Information
                recycling level:
           feedstock input rate:
         production output rate:
    production design capacity:
      capacity utilization factor:
          feedstock reject rate:
              waste generated:
             disposal method:
                   equipment:

                  employment:
          scheduled operation:
             area requirement:
                    plant size:
               warehouse size:
           energy requirement:
             water requirement:
secondary
300 TPD scrap material
300 TPD
350 TPD
86%
none
landfill
two volume reduction machines (in-house design),
dust collector, ferrous separator
21 full time; 3 skilled, 18 unskilled
270 days per year; 1 to 3 shifts per day (seasonal)
4 acres
5,000 square feet [a]
none [b]
175,000 kWh per year of electricity
150 gallons per day
  [a] Future plants will store products inside, requiring significantly larger plant size (25,000 square feet, according to ReClaim officials).
  [b] Future plants will require 20,000 square feet of warehouse space.
                                                                          Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                19

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    - RECLAIM OF NEW JERSEY, INC. •
  Table 8    Product Information
products
manufactured
ground cover substitute
pothole patch
total
production total post-
rate recycled consumer
(TRY) content content
68,900
48,600
117,500
100%
25%
69%
95%
24%
66%
estimated gross
annual revenue
sales per ton
$70,000
$3,930,000
$4,000,000
$1
$81
$34
value
added
per ton
$65
$380
$190
                                                                        Source: Institute for Local Sell-Reliance, 1992.
muddy roadway stabilization (Table 8).   The
product is easy  to apply and uses no heat or
chemicals in its production or application.  While
ReClaim has thus far focused its efforts on Econo-
Pav®, it now plans to devote an increasing share
of the Kearny operation to  the addition of two
high-value products:  RePave®, a "high-perfor-
mance" pothole patch, and the ReActs® line, a
collection of three asphalt pavement enhancers
(modifiers).

    RePave® has already been used to patch
potholes in over  70 sites across New Jersey.  Its
marketing advantage over traditional cold-patch
material is its increased tenacity. Road crews use
cold-patch to temporarily patch potholes until
warm weather permits the use of more permanent
hot-patch repair.  However, due to a number of
factors, many of these "temporary" patches are left
as permanent, or are re-patched year after year.
RePave®, says the company, "has proven
to be a superior,  long lasting and durable
cold mix material....   It can be applied in
any type of weather and hardens so effec-
tively  that it does not push out, crack or
break up from  prolonged road  wear."
RePave® is available both in large quanti-
ties for sale to government divisions, and
in small quantities for the home patch mar-
ket. The product  is sold retail in home
improvement stores throughout the North-
east, Arizona, and southern California.

    The ReActs® asphalt additive increases
the "fibrous" characteristics  of asphalt,
extending its life,  and providing a superior
riding surface.  Pavers mix the additive
with asphalt in  a one-to-ten  ratio.  The
product is currently undergoing tests and
should be available in the spring of 1993.
                 ECONOMICS
                    ReClaim generates revenue through tipping
                 fees charged to haulers and roofers who pay
                 ReClaim to accept roofing scrap (Table 9).  Prod-
                 uct sales currently generate little revenue for the com-
                 pany, although ReClaim expects significant revenue
                 increases with the introduction of new, high-value
                 products (RePave® and ReActs®;.

                    The  introduction of RePave® has increased
                 both the value added to the roofing material and
                 the value ReClaim receives for its products.
                 Producing a ton of Econo-Pav® brings ReClaim
                 $65 ($64 per ton tipping fee and $1 per ton sales
                 revenue). A five gallon bucket of RePave® sells
                 for $7.75 wholesale. ReClaim plans to increase
                 production of the pothole patch to 50 percent of
                 total production by mid-1993.
             Table 9    Economic Information
                 initial capital cost:
                       labor cost:
                     energy cost:
                   feedstock cost:
                   total O&M cost:
                   gross revenue:
              capital cost/capacity:
                  O&M cost/sales:
              gross revenue/sales:
$3,500,000 (1988)
$400,000 per year
$200,000 per year
- $5,000,000 per year
$2,000,000 per year
$4,000,000 per year
$10,000 per TPD capacity
$17 per ton sold
$34 per ton sold
                                                                        Source: Institute for Local Sell-Reliance, 1992.
20
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                  • ASPHALT -
   ReClaim has spent a significant amount of
time and capital developing its production pro-
cess.  Together, research and development and
new equipment expenditures make up a quarter
of Reclaim's total costs. Twenty percent of O&M
costs is spent on labor, and ten percent on energy
costs.
REPLICABILITY
    The production line at Kearny is Reclaim's
second. In 1991 ReClaim completely replaced the
manufacturing line, moving it to the Camden,
New Jersey plant. Unlike the original line, which
processed material outdoors, the new line at
Kearny is completely housed, easing maintenance
and reducing moisture  content in the  product.
ReClaim management is currently planning a third
and final round of improvements, which, with
some processing adjustments, will render the
operation fully ready for replication at other sites.
   According to  ReClaim, Inc. executives, the
company is actively seeking expansion opportu-
nities, and will soon take root in several locations.
around  the country.  The company is seeking
metropolitan areas (population over one million
people) with landfills near capacity, high tipping
fees, and strict environmental laws  in force.
Numerous attempts by other companies to  copy
Reclaim's process have failed due to inadequate
technology, along with an incomplete understand-
ing of the mechanical volume reduction process.
CONTACTS
John Kraft, Director of Corporate Development
ReClaim, Inc.
8001 North Dale Mabry Highway, Suite 601
Tampa, Florida  33614-3211
800-448-5307
813-933-9713 fax
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                                                             21

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 OPTIMUM ART GLASS,  INC,
                     Location:

                 Start-up Date:

         Recycled Material Used:


                     Products:

     Production Design Capacity:
Eaton, Colorado

1989

container cullet
plate cullet
colored sheet glass

3TPD
 COMPANY  BACKGROUND
    Robert and Kristine Wise began producing art
 glass in their Eaton, Colorado plant in February
 1989, armed with the belief that small plants using
 post-consumer glass could, be viable in both small
 and large communities.  Kristine serves as presi-
 dent of Optimum Art Glass, Inc., and her hus-
 band, Robert, is plant operator and engineer.  The
 Wises have been involved with glass making since
 1976, but the leap to cullet  as the primary feed-
 stock came with the company's 1988 inception.
 The Eaton plant is their lone facility, but they are
 interested in some type of expansion to meet the
 growing demand for their product.

    Optimum's plant was originally a grain-dry-
 ing facility, and was later used to dry chicken
 manure.  It stood idle  for some time before
 Optimum converted it to an art-glass factory.
FEEDSTOCK
    Optimum buys furnace-ready cullet from non-
profit groups, recycling centers, and individuals
in northeastern Colorado.  Thirty percent of this
is container cullet, and the remaining 70 percent
                 is plate cullet (Table 10). According to Optimum's
                 specifications, incoming cullet must be color
                 sorted, free of labels and caps, and crushed to a
                 1/4-inch size. The Eaton plant was designed to
                 handle up  to three tons per  day of cullet, but
                 currently runs at one-third capacity. The feed-
                 stock is 97 percent recycled glass, with 87 percent
                 post-consumer content.

                    Optimum uses more flint and green contain-
                 ers than amber ones at this time, primarily be-
                 cause today's glass artists are not using earth-
                 tones. Green container cullet is used to make both
                 green and blue art glass.   Coloring agents are
                 added to flint to create all of the other colors.
                 Mixed-color cullet can be used  in small quantities
                 to make black glass.  The  plate glass — mostly
                 trim waste or breakage from local window shops
                 — is mixed with container glass.
                PROCESS
                    Optimum is continually refining its process,
                not only to improve efficiency and product qual-
                ity, but also to reduce environmental impact. As
                a result, the manufacturing line has gone through
                many incarnations.
22
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - CLASS -
  Table 10   Feedstock Information
consumption
material (TPY)
plate cullet
container cullet
non-glass additives
total
168
72
7
247
recycled post-consumer
content content
100%
100%
0%
97%
85%
100%
0%
87%
price
paid/ton
$100
$100
<$700
$110
                                                                        Source: Institute for Local Self-Reliance, 1992.
    Furnace-ready container and plate cullet is
hoisted to the third level of the plant, where it's
tipped into the feed hopper.  Colorants and flux-
ing agents are added, and the mixture is melted
at 2,100° F in one of two  batch furnaces.  The
molten glass is ladled onto a sloping plane. Steel
rollers flatten the gob of molten glass as it slides
down the surface.  The re-
sulting sheets pass through
a long annealing lehr, where
controlled heating tempers
the glass. The sheet is  then
trimmed and removed from
the conveyor for storage.
                   color glass drained from the furnace.  In the past,
                   a nearby manufacturer had purchased  this to
                   make  aquarium  gravel,  but it  is  presently
                   landfilled. Approximately 2 percent by weight of
                   the input materials (metals,  ceramics, plastic, etc.)
                   is also landfilled  as waste.  Table  11 outlines
                   additional process information.
  ,  Replacing virgin materi-
 als with cullet reduces melt-
 ing time, yields a 30 percent
 energy  savings, and pro-
 vides a ready supply of
 batch material.  Furnace life
 is  also extended  by using
 recycled material —  Opti-
 mum rebuilds its furnaces
 every 12 to 15 months, but
 this  costly  undertaking
 would occur even more fre-
 quently if virgin  feedstock
 were used. Optimum plans
 to  add a new conveyor and
 glass crusher to improve
 feedstock  handling  and
 quality.

    Optimum changes the
 color made in each furnace
 on a weekly basis, resulting
 in about  300  pounds  of
 "drain glass," that is, mixed-
Table 11      Process Information
            recycling level:
       feedstock input rate:
     production output rate:
 production design capacity:
   capacity utilization factor:
       feedstock reject rate:
          waste generated:
         disposal methods:
                equipment-


              employment:
       scheduled operation:
          area requirement:
                 plant size:
           warehouse size:
        energy requirement:
secondary
1 TPD
1 TPD
3 TPD
33%
2%
drain glass (300 pounds per week)
landfill (seeking alternatives)
drum  hoist, feed hopper, 2 furnaces,
rollers, annealing lehr
2 full time, 1  part time; 3 skilled
264 days per year; 1 shift per day
2 acres
8,000 square feet
6,000 square feet
10.6 million  kWh per year of
 electricity; 432,000 cubic feet per
 year of natural gas
                                           water requirement:    590 gallons per day
                                                                         Source: Institute for Local Self-Reliance, 1992.
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                              23

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              •OPTIMUM ART GLASS, INC.
            Table 12   Product Information
production
products
manufactured
colored sheet glass
rate
(TPY)
240
total
scrap
content
97%
post-
consumer
content
87%
estimated
annual
sales
$150,000
gross
revenue
per ton
$625
value
added
per ton
$510
                                                                                 Source: Institute for Local Self-Reliance, 1992.
              Used cooling water from the rolling mill
          collects in a small settling pond.  Rather than
          being sent into the sewer  system, this water is
          used to water vegetation on the grounds.  The
          Wises also enjoy the added serenity the body of
          water brings to the landscape.

              The two batch furnaces use natural gas from
          a neighboring private energy company, and the
          facility's other energy needs are met by the local
          electric  utility.   The  latest innovation on
          Optimum's drawing board  is a digester that will
          consume  local livestock manure and brewer's
          waste from a nearby  brewery, as well as waste
          heat from the two glass furnaces.  The resulting
          methane will be used to fire the furnaces and run
          an electrical generator. The organic material will
          go to a neighboring composting operation.  The
          manure will  cost  approximately $1.75 per ton,
          while the brewer's waste will be free.  The capi-
          tal cost of the project  is expected to be $365,000,
          much of which will be covered by a grant from
          the Colorado Office of Energy Conservation.
            Table 13  Economic Information
                Initial capital cost:
                      labor cost:
                     energy cost:
                  feedstock cost:
                  total O&M cost:
                  gross revenue:
             capital cost/capacity:
                 O&M cost/sales:
             gross revenue/sales:
$400,000 (1989)
$13,200 per year
$10,800 per year
$27,200 per year
$60,000 per year
$150,000 per year
$133,000 per TPD capacity
$250 per ton sold
$625 per ton sold
                              Currently, Robert Wise runs a single shift with
                          the help of a part-time employee at a wage of ap-
                          proximately $8 per hour.  In the future Optimum
                          plans to run two shifts, with two full-time work-
                          ers per shift.  When the digester comes on line,
                          an additional employee per shift will be required,
                          totaling six full-time  laborers in addition to a
                          single administrator.  Operating the plant on a
                          single-shift basis requires 48 person-hours per
                          week.
                          PRODUCTS
                              Artists, architects, designers and hobbyists use
                          art glass in windows, dishes, lamp shades, hang-
                          ing artwork, jewelry, and many other decorative
                          applications. Optimum's sheet glass suits a num-
                          ber of uses, but is used primarily in windows.

                              The company produces 240  tons per year of
                          colored sheet-glass, which is sold internationally
                                   (Table 12).  Ofher products under con-
                                   sideration or development include jew-
                                   elry,  high-quality giftware made from
                                   mixed-color cullet, and aquarium gravel
                                   made from drain glass.
                                     Source: Institute for Local Sail-Reliance. 1992.
ECONOMICS
    Economically, Optimum is well situ-
ated to capitalize on the expanding art-
glass market. The initial capital cost in
1989 was $400,000. An additional con-
veyor  and  glass  crusher  will  cost
$15,000. The annual operating costs are
$60,000. The cost breakdown per sheet
of glass is dominated  by  overhead, la-
bor and energy.  On the  revenue  side,
_
          24
          Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                   - GLASS -
annual sales are $150,000 per year (Table 13).
Optimum's pricing policy encourages cash pay-
ment up front, allowing the firm to be more liq-
uid.

   Currently, about half of Optimum's product
is sold in Japan, and most of the remainder in
North America. Robert Wise estimates that about
70 percent of the art-glass industry is composed
of hobbyists, and the remainder,  professionals.
The company's twice annual presence  at trade
shows, combined with excellent word-of-mouth
advertising, bring Optimum more demand than it
can meet  at current production rates.
REPLICABILITY
    Optimum says its technology is replicable, and
the Wises are very interested in expanding opera-
tions — Robert Wise envisions a similar plant on
each coast.  The $80 to $100 million-per-year in-
ternational industry has natural limits, but Opti-
mum senses potential growth in the rebuilding of
churches in the former Soviet Union.  Further-
more, the Chinese government has contacted
Optimum to express interest in using the technol-
ogy in a large facility in China.
CONTACTS
Kristine Wise, President
Optimum Art Glass, Inc.
36471 WCR 33 Route 2
Eaton, Colorado  80615
303-454-2620
303-356-0893 fax
 Manufacturing from Recyclables: 24 Case Studiesrof Successful Enterprises
                                                                                             25

-------
  OWENS-BROCKWAY
                       Location:
                  Start-up Date:
          Recycled Material Used:
                      Products:
      Production Design Capacity:
Portland, Oregon
1956
container cullet
glass containers
600 TPD
 COMPANY BACKGROUND
    The Owens-Brockway glass container plant in
 Portland, Oregon has faced many challenges.  It
 is smaller than average, and is charged with the
 task of using secondary material at a level well
 above industry norm.  However, the plant con-
 tinues to produce a wide variety of containers in
 three colors, while a number  of its larger peers
 have been shuttered.   In fact, this scrap-based
 manufacturing facility has excelled:  Owens-
 Brockway recognized it as its  Outstanding Plant
 of 1991.

    Owens-Brockway (O-B) is a major subsidiary
 of Owens-Illinois (Toledo, Ohio), one  of the
 world's leading manufacturers of packaging prod-
 ucts.  In 1987, Kohlberg Kravis Roberts & Com-
 pany conducted a leveraged buy-out of Owens-
 Illinois, but now the company  is again owned  in
 the majority by public investors.  Owning 22  of
 the nation's 73 glass-container  plants, O-B is the
 largest glass-package maker in the U.S.   It also
 leads in  recycled glass usage — in 1990,  O-B
 consumed 1.1 million of the 2 million tons of glass
 that was recycled in the U.S.
                FEEDSTOCK
                    The O-B Portland facility purchases color-
                sorted, whole and broken container glass from a
                number of sources in the Pacific-Northwest (Table
                14).  Public and private recycling programs sup-
                ply O-B with post-consumer material, while cus-
                tomers from the food industry, distributors and
                vendors sell pre-consumer glass to the plant.

                    The tolerable level of feedstock color-contami-
                nation varies with the color. Hint can tolerate no
                green or amber, but can contain less than 3 per-
                cent "water bottle blue." The amber cullet stream
                must be 95 to 100 percent amber or golden wine
                bottles, while green can tolerate any shade of
                green.  The recycled content of amber bottles is
                a mix of 85 percent amber cullet and 15 percent
                green cullet. This is done in  an attempt to ab-
                sorb some of the current green cullet glut in the
                Pacific-Northwest; however, O-B officials empha-
                size that the color mixture must be precise, pre-
                cluding use of  mixed-color  cullet.

                   O-B requests that all containers be empty and
                relatively clean.  Labels and closures are accept-
                able, but the plant encourages the removal of
                metal lids,  Glass containers used for toxic ma-
                terial (e.g., acid, insecticide)  are accepted as long
                as they are triple-rinsed and residue-free.  Loads
                of glass containing any ceramics, mirrors,  plate
26
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - GLASS -
  Table 14   Feedstock Information
consumption
material
flint cullet
amber cullet
green cullet
sand
soda ash
limestone
caustic soda
salt cake
iron pyrite (amber colorant)
iron chromate (green colorant)
carbon (amber colorant)
selenium
total
(TRY)
42,368
21,126
13,128
42,400
10,345
10,330
660
463
17
9
9
1
140,856
recycled post-consumer
content
100%
100%
100%
0%
0%
0%
0%
0%
0%
0%
0%
0%
54%
content
87%
92%
92%
0%
0%
0%
0%
0%
0%
0%
0%
0%
49%
price
paid/ton
r $40
$20
$10
$34
$115
$40
$365
$111
$129
$276
$190
$10,000
$40
glass, crystal, or other non-container glass con-
taminants are rejected.
PROCESS
    The Portland facility boasts a state-of-the-art
cullet processing system largely of in-house de-
sign, that compliments its glass container produc-
tion facility.  Glass enters this system when a
front-end loader loads the material into an infeed
hopper.  The glass travels up a conveyor to a
magnet that removes gross ferrous items.  Work-
ers pick out other large contaminants, and the
glass is crushed.  After passing a second magnet,
the crushed glass traverses a vibrating  screen to
sort out small pieces.  Large pieces proceed to
another crusher  and vibrating screen, this one
with a vacuum system that removes light-weight
debris such as paper and plastic labels.  A third
magnet sorts  small ferrous contamination  at the
end of the screen, where once  again large  pieces
are sent back through the crush/screen stage.

    Now just one set of contaminants remain:
non-ferrous metals, including aluminum, lead and
brass.  The next stage, a $120,000 non-ferrous
detection system, is the most recent addition to
the facility.  As glass falls off  the end  of a con-
veyor,  a non-ferrous-sensor triggers a gate to
divert  the contaminants.  As the furnace-ready
cullet heads for storage, the reject stream travels
through two more identical non-ferrous-detection
stages. (The resulting metals and other contami-
nants are too intermixed to be marketable.)  After
its initial month of use the new system has re-
sulted in a marked reduction of stones in  the
finished product.

    Future  additions to the cullet-processing sys-
tem include a technology  to handle ceramic con-
tamination.  This  will involve either an optical
ceramic-detection approach, or a fine-grind sys-
tem, in which all  cullet (including ceramic con-
tamination) will be ground to the size of  sand,
vastly reducing the damage inflicted by  the
gravel-sized refractories.

    O-B adds sand, soda ash, and limestone, along
with several other materials in lesser quantity (see
Table 14) to the cullet, and  continuously charges
its two active furnaces with this mix.  The com-
puter-controlled furnaces keep molten glass brew-
ing at a depth of  five feet and a temperature of
2,700° F.

    Each furnace has two dedicated forming ma-
chines that produce bottles  at a rate of 60 to 320
bottles per minute.  Smaller containers, such as
ten-ounce juice bottles, are made  more quickly
than larger ones, such as one-gallon apple cider
Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises
                                                                                                27

-------
      - OWENS-BROCKWAY
    Table 15   Process Information
                                                                                       3!:::ng  n KM
                 recycling level:
            feedstock input rate:
          production output rate:
      production design capacity:
        capacity utilization factor:
            feedstock reject rate:
               waste generated:
              disposal methods:
                    equipment:


                   employment:
            scheduled operation:
              area requirement-
                     plant size:
                warehouse size:
            energy requirement:


             water requirement:
primary
402 TPD
329 TPD
600 TPD
55%
18%
metals, ceramic, paper, plastic and other contamination
landfill
beneficiation system, 4 furnaces (2 operational); 2 forming lines
per furnace, annealing lehrs

300 full time; 120 skilled, 180 unskilled
350 days per year; 3 shifts per day
55 acres
721,150 square feet
400,000 square feet
41,472,000 kWh per year of electricity; 6,309,857 therms per
year of gas
55,700 gallons per day
                                                                         Source: Institute for Local Self-Reliance, 1992.
 jugs.  A precise gob of molten glass is projected
 into any  one of 100 bottle or jar molds.  Com-
 pressed air forms the internal shape of the con-
 tainer, which is ejected red-hot, and sent to the
 annealing lehr.

    The lengthy lehr tempers  the glass.  The
 outsides of the cooled bottles are treated with a
 food-grade lubricant to reduce friction as they
 bump and grind down the conveyor.  An auto-
 mated inspection system detects imperfections that
 may lead  to product failures, and routes those
 bottles back to the furnace.  Depending on cus-
 tomer specifications, labels may be added at the
 plant.

     Of the 300 full-time employees, over 265 are
 union members, earning an average wage  of
 $11.80 per hour.  Forty percent of all of the jobs
 at the plant are skilled positions (Table 15).
                    PRODUCTS
                       This OB facility makes containers for the food
                    and beverage industry in the Pacific-Northwest.
                    Two-thirds  of its product is flint, 23 percent is
                    amber and  9 percent is green (Table 16).  The
                    division between beer, beverage, and food contain-
                    ers is approximately equal.

                       What sets the facility apart from its competi-
                    tors is the recycled content of its containers. With
                    post-consumer content approaching 75 percent in
                    its colored  bottles and 40  percent  in its clear
                    containers, the Portland plant is well ahead of the
                    25 percent industry average.

                       These numbers help Owens-Brockway's West-
                    ern Region plants achieve the  following cumula-
                    tive, weighted averages for post-consumer content,
                    as certified by  Scientific Certification Systems
                    (Oakland, California):  green, 47 percent; amber,
28
   Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

-------
                                                                                       -GLASS
  Table 16  Product Information
production
products
manufactured
flint containers
amber containers
green containers
total
rate
(TPY)
77,780
26,700
10,620
115,100
total
recycled
content
42%
78%
78%
54%
post-
consumer
content
40%
74%
74%
49%
estimated
annual
sales
NA
NA
NA
$50,000,000
gross
revenue
per ton
NA
NA
NA
$430
value
added
per ton
NA
NA
NA
$330
                                                                         Source: Institute for Local Self-Reliance, 1992.
42 percent; flint, 19 percent; and overall, 27 per-
cent.

    The recycled-content level of the plant's flint
containers is currently limited by a shortage of
quality cullet.  Conversely, there is a glut of green
cullet in the area, as there is in much of the U.S.
While the Portland plant sets the  industry stan-
dard at 78 percent recycled content for green and
amber containers, plant representatives state that
90 percent is feasible for all colors.  The  last 10
percent of the feedstock must be virgin to main-
tain control over the chemical composition of the
melt.
ECONOMICS
    With two operating furnaces and $50 million
in sales in 1991 (Table 17), the Portland plant is
small compared to its competitors and many of
its fellow 21 OB  plants (which netted  $2.36 bil-
lion in sales in 1991).  Because the facility was
erected in 1956, the initial capital cost holds little
information. Operating and maintenance costs,
including energy and labor, are held as  confiden-
tial by the company. However, labor is the big-
gest piece of the pie, at one and one-half times
the feedstock cost, and over three times the en-
ergy cost.

    The state-of-the-art cullet processing center has
undergone  numerous upgrades since the  initial
$500,000 construction in 1980, including a $60,000
vacuum-system overhaul in 1986, a $30,000 pre-
screen addition in  1990, and a $150,000 system up-
grade  (including an electromagnet, crushers, and
a picking building) in 1991.  The $120,000 non-
ferrous detection system completed in late 1992
brings the total investment in the cullet-process-
ing system to $860,000.
REPLICABILITY
    Glass container manufacturing plants have
been closing over the last ten years, even though
the glass packaging industry has maintained its
level of market share. Plant closures are due to
consolidation of companies, increased production
  Table 17  Economic Information
     initial capital cost:
            labor cost:
          energy cost:


       feedstock cost:
       total O&M cost:
       gross revenue:
  capital cost/capacity:
      O&M cost/sales:
  gross revenue/sales:

   [a] ILSR estimate.
NA(1956)
$8,000,000 per year [a]
$2,000,000 per year
(for electricity only) [a]

$5,600,000 per year
NA
$50,000,000 per year
NA
NA
$430 per ton sold
                                                                          Source: Institute for Local Sell-Reliance, 1992.
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                                                                 29

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      -OWENS-BHOCKWAY •
 levels of existing plants, increased automation, and
 relocation by U.S. companies to  less developed
 countries to take advantage of cheaper labor and
 looser environmental regulations.  Coupled  with
 increased competition from the plastic, metal and
 paperboard container industries, many glass con-
 tainer plants are struggling.

     So, despite the fact that the Portland facility
 could technically be  replicated, the economics of
 building a new plant are prohibitive.  What could
 be copied at existing plants, however, is the great
 success the Portland plant has had with the higher
 percentage of post-consumer recycled content in
 its products. With recyders searching for markets,
 and glass makers bemoaning a shortage of qual-
 ity cullet, room for improvement  in the glass-re-
                 cycling infrastructure clearly exists.  Glass plants
                 wishing to increase their cullet consumption can
                 emulate the Portland plant's acquisition of feed-
                 stock, as well as its mechanical cullet processing
                 system.
                  CONTACTS
                  R.E. Sprague, Plant Manager
                  Owens-Brockway Glass Containers
                  a unit of Owens-Illinois
                  5850 NE 92nd Drive
                  Portland, Oregon  97220
                  503-251-9422
                  503-251-9431 fax
30
Manufacturing from Rgcydables: 24 Case Studies of Successful Enterprises

-------
                              STONEWARE  TILE COMPANY
                    Location:

                Start-up Date:

        Recycled Material Used:



                    Products:

    Production Design Capacity:
Richmond, Indiana

1988

furnace-ready plate glass
furnace-ready windshield glass
furnace-ready industrial scrap glass
glass-bonded ceramic tile

70TPD
COMPANY  BACKGROUND
   Stoneware Tile Company (STC) has produced
ceramic  tile from discarded glass for 15 years.
STC  has continually improved its Richmond,
Indiana facility with attention to its  manufactur-
ing process and feedstock, resulting in a more
competitive product.  Today, as the world's only
producer of glass-bonded ceramic tile from post-
consumer material, STC is gaining recognition and
praise from the tile industry for producing high-
quality and durable products.

   The  idea of making ceramic tile from dis-
carded glass originated  in the late 1970s as a
method  to lower fuel costs through reduced en-
ergy demand.  However, problems with feedstock
quality and a slower-than-expected rise in fuel
costs limited initial attempts to produce tile from
discarded glass.

   CSC, Inc., a Chicago, Illinois holding company,
purchased STC in 1988. The new owners revamped
the company, moving the tile operation to Richmond,
Indiana, and choosing beneficiated plate glass for feed-
stock. According to Richard Moore, Plant Manager for
STC, the consistency and reduced level  of contamina-
tion in the new feedstock allowed the company to
produce  "a tile with a unique look, while remaining
environmentally appropriate."
                    The tile has been well received by architects
                 and designers.  It has been used in such high-
                 profile buildings  as Chicago Bears Coach Mike
                 Ditka's newest Chicago  restaurant, and Team
                 Disney's newest  office complex outside of Or-
                 lando, Florida.
                 FEEDSTOCK
                     STC's feedstock includes plate glass, wind-
                 shield glass, and industrial-scrap cullet  that it
                 purchases from a glass beneficiation company in
                 Ashland, Kentucky. At the time of purchase the
                 glass is  free of contaminants, and has been re-
                 duced to a 200 mesh size. Clear glass is required
                 for the majority of STC's tile,  but tinted wind-
                 shield glass can be used for the darker colors of
                 tile. The other major feedstock is quarried clay.
                 In  the past, STC has used discarded ceramic
                 material in the tile, but currently relies primarily
                 on virgin clay.

                     At $200 per ton of cullet, the beneficiated glass
                 is substantially more expensive than traditional ce-
                 ramic material used in tile production, which can
                 cost as little as $70 per ton (Table 18). STC incurs
                 additional costs in shipping glass to the  facility
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                                        31

-------
              -STONEWARE TILE COMPANY •
           Table 18   Feedstock Information
consumption
material (TPY)
furnace-ready cullet
virgin material
total
9,800
5,400
15,200
recycled post-consumer
content content
100%
0%
64%
30%
0%
19%
price
paid/ton
$200
NA
NA
                                                     Source: Institute for Local Self-Reliance. 1992.
         ($30 per ton, according to company estimates).
         Company executives are examining alternative
         supplies of cullet, including in-house benefidation
         systems for future plants.
         PROCESS
             Although the production of glass tile is simi-
         lar to that of day-based tile, many of the distinc-
         tions are held confiden-
         tial by STC.  After mix-
         ing the cullet with quar-
         ried day, STC kiln-fires
         the tile at 1,850° F, which
         is  about 250° F below
         the kiln temperature for
         clay-based  tile.    The
         lower kiln temperatures
         result in significant en-
                                             who apply glass glazes
                                             to tile surfaces, STC in-
                                             corporates glass into the
                                             tile body itself, so the
                                             luster remains  even as
                                             the tile wears.  The ul-
                                             tra-smooth surface is
                                             easy to  disinfect, mak-
                                             ing it ideal for use in
                                             hospitals and  restau-
                                             rants. The tile has also
                                             been used  in army
                      bases, veterans hospitals, and business offices.  In
                      1992 the Ceramic Tile Institute awarded  STC the
                      Diamond Award for  superior tile quality.

                          One of STC's best selling products, Traffic
                      Tile™, comes in  more than 20 standard colors,
                      and meets or exceeds performance standards set
                      by the Tile Council of America, Inc. (Princeton,
                      New Jersey) for facial dimension, warpage, wedg-
                      ing, abrasive hardness, water absorption, coeffi-
 Table19   Process Information
            t       •.   v,     -X .,-fUSHif «!
         ergy savings for the fa-
         cility. Table 19 summa-
         rizes the process infor-
         mation.
         PRODUCTS
            STC  produces  56
         tons per day of high-
         quality,  glass-bonded
         tile.  The product's last-
         ing shine and ease of
         disinfecting make it ap-
         propriate for use in the
         architectural and decora-
         tive  design of restau-
         rants, hospitals, and of-
         fice buildings.

            Unlike traditional
         clay-tile manufacturers,
           recycling level:
      feedstock input rate:
    production output rate:
production design capacity:
  capacity utilization factor:
      process  reject rate:
         waste generated:
        disposal methods:
              equipment:


             employment:
     scheduled operation:
        area requirement:
               plant size:
          warehouse size:
      energy requirement:
       water requirement:
secondary
62TPD

56 TPD (30,000 square feet per day)
70 TPD (38,000 square feet per day)
80 percent
10 percent

scrap tiles, paper

landfill, seeking alternatives
furnace, kiln (other information on
equipment NA)

NA

245 days per year; 3 shifts per day
7.5 acres

42,000 square feet
15,000 square feet
NA

NA
                                                                                 Soured: Institute for Local Self-Reliance, 1992.
_
        32
     Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

-------
                                                                                    - GLASS-
  Table 20   Product Information
production total post- estimated gross value
products rate recycled consumer annual revenue added
manufactured (TRY) content content sales per ton per ton
ceramic tile 13,720 70% 30%
[a] ILSR estimate.
NA NA $2,500 [a]

cient of friction, breaking strength, frost resistance,
sheer bond strength, and shade variation.

    Retail prices vary widely, depending on tile
color and pattern.  Suggested retail price of Traf-
fic Tile™ ranges from $4.30 to $24.00 per square
foot, according to  STC.  Seventy-five percent of
STC sales comes from their  standard tile, which
retails for $5.60 per square foot.   At 3.7 pounds
per square foot, this tile is valued at over $3,000
per ton.  Tile impregnated with customized color
or texture (approximately 25 percent of sales) is
more expensive  (Table 20).
ECONOMICS
    As the sole producer of scrap-based, glass-bonded
tile, STC is at present keeping all economic and cost
figures confidential.  The company does estimate that
it spends an average of 10 percent of total tile cost on
shipping the heavy product and that moving opera-
tions closer to markets could reduce cost by as much
as 3 percent.
REPLICABILITY
   STC's Richmond operation is fully replicable,
and the company has examined opportunities to
expand operations. Although the Richmond site
affords doubling of capacity, siting additional op-
erations elsewhere could result in substantial
reductions in delivery charges to the West Coast.
CONTACTS
Richard Moore, Vice President
& General Manager
Stoneware Tile Company
1650 Progress Drive
Richmond, Indiana  47374
317-935-4760
317-935-3971 fax
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                                              33

-------
 AMG RESOURCES  CORPORATION
                      Location:

                  Start-up Date:

         Recycled Material Used:


                      Products:
St. Paul, Minnesota

1989

source-separated ferrous cans
magnetically-separated ferrous material
steel
tin
non-ferrous metals
     Production Design Capacity:    130 TPD
 COMPANY  BACKGROUND
    AMG Resources Corporation is the world's
 largest detinner of ferrous scrap, owning four do-
 mestic and four foreign-based mills.  Its mill in
 St. Paul, Minnesota, however, varies from tradi-
 tional detinning operations in one major respect:
 it was designed to process post-consumer, not
 industrial, tin-plate scrap.  The St. Paul plant is
 smaller in design capacity than a traditional plant,
 and in 1989 was purposely built near a five-county
 solid-waste region that needed an end market for
 its ferrous scrap.

    Contaminants inherent in ferrous derived
 from  the municipal solid waste stream, such as
 food  residue, paper, glass, and aluminum, pose
 the greatest challenge to detinning tin cans.  These
 contaminants result in increased tin losses and
 residue generation, conflicting with current indus-
 trial detinning technologies. For this reason AMG
 developed a front-end  cleaning system that pro-
 duces a 97 percent ferrous input for the detinning
 process.
                 FEEDSTOCK
                    Feedstock for the AMG plant is divided into
                 two types (Table 21). The first is source-separated
                 material  from recycling programs  — curbside,
                 drop-off, commercial and  buy-back programs.
                 The other is magnetically-separated ferrous mate-
                 rial from the front end of solid-waste incinerators
                 and composting operations.  The source-separated
                 material contains tin-plated steel food cans, bi-
                 metal beverage cans, and steel paint and aerosol
                 cans.  The magnetically-sorted portion contains all
                 these, plus additional ferrous  items that make
                 their way into the  waste  stream.  The  source-
                 separated material  is more homogeneous  and
                 easier to process than the magnetically separated
                 ferrous, requiring 75 to 80 percent less processing
                 time than the magnetically-sorted portion.

                    Because quality control is extremely important
                 to its process, AMG arranges long-term, stable
                 contracts with reliable suppliers of feedstock, and
                 works to  help those suppliers meet  AMG speci-
                 fications.  The primary goal is for incoming loads
                 to reach 85 percent steel by weight. The material
                 from recycling programs is typically 96 percent
34
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

-------
                                                                                     - METAL -
  Table 21  Feedstock information
material
magnetically-separated ferrous
source-separated ferrous
total
consumption
(TPY)
21,000
9,000
30,000
recycled post-consumer price
content content paid/ton
100%
100%
100%
100%
100%
100%
$0-20
$30-50
$9-29
alf.Holbnro 1Q9?
ferrous, while the magnetically-sorted portion is
greater than 70 percent. Non-ferrous material is
removed as the feedstock is processed, and the
organic fraction is sent back to one of the incin-
erators.

    Ninety percent of the feedstock comes from
within Minnesota, with the majority of that origi-
nating in the five-county region.  Some material
comes from as far away as 300  miles.  Most of
the scrap arrives by truck, although rail access is
available.
PROCESS
    Incoming feedstock is dumped on a tipping
floor.  A pedestal crane loads the material into
hoppers that feed three inclined screw conveyors.
Each conveyor passes through a vibrating picking
station, where a worker removes  heavy ferrous
and copper armatures that may damage the shred-
der, as well as  oil filters and other  potentially
hazardous items.

    The material is next deposited in patented
Cutler™ shredders designed specifically for post-
consumer ferrous.  Each contains two independent
drives that give  the impellers and cages a contra-
rotating action.  This causes cans to shred against
each other, minimizing machine wear, and remov-
ing unwanted aluminum, paper, plastic, glass, dirt
and organic material.  A dust-retention system
keeps the air around the work space clean.

     The shredded metal drops through a zig-zag
shaped air-classifier, in which suction pulls non-
metallic material from the stream. These contami-
nants are baled in a hydraulic compactor, and
returned to an RDF (refuse derived fuel) facility.
The shredded metal drops into a cooling cham-
ber, and is conveyed to a permanent double-drum
magnet, where non-ferrous metals are eliminated.
Marketable aluminum accumulates here.

    Contaminants gone, the detinning begins. An
operator on a Bobcat loader fills baskets with the
cleaned scrap.  The baskets are lowered into a
tank of detinning solution at 170° F, which is elec-
trified to remove the tin.   A layer of foam that
forms on top  of the tank is an indicator: less foam
means low aluminum content, and, therefore,
lower chemical costs through increased opera-
tional control.

    After two to five hours, the basket is raised
and dumped at a rinsing station, where sodium
hydroxide is  removed.  The final product is loose
shredded material that may be formed into bri-
quettes.  Because of its density and known chem-
istry, it has high quality and low contamination.

    Tin is recovered  by  stripping carbon steel
cathodes that draw it from the solution.  It is
smelted  to remove impurities such as lead, zinc
and antimony, and then cast into high purity 100-
pound ingots.

    The  detinning solution, which is 95  percent
water, is continuously recycled.  Water is replaced
as needed, but no effluent is discharged.

    The  St. Paul facility employs 18 full-time and
four part-time workers, four of whom are consid-
ered skilled laborers.  A non-union, unskilled  po-
sition starts at  approximately $8 per hour (Table
22).  All employees of the St. Paul plant are local
residents, except the plant manager, who was
imported from another AMG operation.
 Manufacturing from Recydabks: 24 Case Studies of Successful Enterprises
                                                                                               35

-------
     •AMG RESOURCES CORPORATION •
   Table 22  Process Information
                                                           U VI K iliiJidJ
                                                                   S jwj
                                                                          ***
                                                                           3
              recycling level:
         feedstock input rate:
       production output rate:
  production design capacity:
    capacity utilization factor:
        feedstock reject rate:
           waste generated:
          disposal methods:
                equipment:


               employment:
        scheduled operation:
          area requirement:
                 plant size:
            warehouse size:
         energy requirement:


          water requirement:
 primary

 97TPD
 95TPD

 130TPD

 73%
 2%

 organic material
 returned to RDF plant

 crane, hoppers, screw conveyors, shredders, dust-retention system, air
 classifier, conveyors, ferrous magnet, detinning tank, testing lab

 18 full time, 4 part time; 4 skilled, 18 unskilled
 312 days per year; 2 or 3 shifts per day
 4 acres

 50,000 square feet

 included in plant size

 600,000-900,000 kWh per year of electricity;
 10,500 MCF per year of natural gas

450,000 gallons per year
                                                                         Source: Institute for Local Sell-Reliance, 1992.
 PRODUCTS
    The main product of AMG's detinning process
 is high-grade steel (Table 23). The quality of the
 steel  is number-one dealer bundle or better, and
 is sold to integrated and primary steel mills from
 Minnesota  to  Louisiana, as well as foundries
 within the state and neighboring Wisconsin.

    Salable by-products include tin, which is sold
 to a number of markets such as the  solder, elec-
 tronics, plating, chemicals, and even wine bottling
 industries.  Tramp  iron, aluminum,  copper, and
 brass are sold  to traditional scrap markets.
 ECONOMICS
    Feedstock and labor dominate the variable
 costs of the St. Paul operation (Table 24). Not fig-
                       ured into  the feedstock costs, however, are the
                       avoided disposal costs that would be borne by the
                       feedstock suppliers. Considering this factor un-
                       covers  even greater economic benefits.
                       REPLICABILITY
                          AMG's St. Paul detinning facility is unique in
                       that it is a small, modular plant designed to
                       process post-consumer tin-plated steel. This new
                       design allows AMG to take the plant to the feed-
                       stock,  as opposed to the traditional approach of
                       shipping feedstock to  a large central  facility.

                          Most of AMG's feedstock originates from a
                       group of five counties in the St. Paul area. AMG
                       estimates that, despite the flat market for  its
                       products, each of the 25 largest metropolitan areas
36
      Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

-------
                                                                                      -METAL-
  Table 23   Product Information
production
products
manufactured
steel
tramp iron
non-ferrous metals
tin
total
rate
(TPY)
21,000
7,500
1,440
60
30,000
total
recycled
content
100%
100%
100%
100%
100%
post-
consumer
content
100%
100%
100%
100%
100%
estimate
annual
sales
$2,730,000
$487,500
$2,000,000
$360,000
$5,577,500
gross
revenue
per ton
$130
$65
$1,400
$6,000
$190
value
added
per ton
$110
$45
$1,400
$5,900
$170
in the U.S. could support a similar facility.  The
recovered post-consumer  tin-plate scrap from a
population of approximately  one million can
support a  single module of the AMG process.
AMG states that it is  interested in maintaining
long-term  supply contracts with local sources,
providing guaranteed markets  in return.

    AMG is currently building  a detinning plant
in Australia, as a joint venture with a steel maker.
AMG's product will be fed to  the adjacent steel
mill.  AMG holds worldwide patents  on its pro-
                            cess and some of its equipment.  Low air emis-
                            sions and lack of effluent discharge contribute to
                            a timely siting process.

                                An obstacle to AMG's expansion comes in the
                            form of steel plants, which, in an effort to bolster steel's
                            recyclable image, have been buying cans at artificially
                            high prices.   This occurs despite the fact that tin
                            contaminates the steel-making process. These higher
                            prices are a short-term boon for can collectors, but they
                            shrink  the supply of feedstock for the more efficient
                            AMG-type detinning facilities.
   Table 24  Economic Information
      initial capital cost:
            labor cost:
          energy cost:


        feedstock cost:
        total O&M cost:
        gross revenue:
   capital cost/capacity:
       O&M cost/sales:
   gross revenue/sales:
$3,900,000 (1989)
$540,000 per year
$45,000 per year
(electricity only)

$570,000 per year
NA
$5,578,000 per year
$30,420 per TPD capacity
NA
$190 per ton sold
CONTACTS
Robert A. Chevalier,
Commercial Director,
Midwest Region
AMG  Resources Corporation
459 North Cline Avenue
Gary,  Indiana   46406
219-949-8150
219-949-8129 fax
                         Source: Institute for Local Self-Reliance, 1992.
 Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises
                                                                                                37

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 AMERICAN CELLULOSE
 MANUFACTURING, INC.
                    Location:

                Start-up Date:

         Recycled Material Used:
                    Products:
Minonk, Illinois

1976

old newspapers
old corrugated containers
magazines
office waste paper
phone books

cellulose building insulation
animal bedding
hydro-mulch
cellulosic absorbent
     Production Design Capacity:   168 TPD
 COMPANY  BACKGROUND
    Entrepreneur John Lohr first encountered
 American Cellulose Manufacturing (ACM), a cel-
 lulose building insulation manufacturer, in 1976,
 when trying to  sell insurance to its plant in
 Minonk, Illinois.  Ten years later, Lohr purchased
 the company, and moved the headquarters from
 Topeka, Kansas to Minonk.

    The company is run by Lohr's daughter, Mary
 Beth Lohr-Baston.  Under the direction of the Lohr
 family, ACM  has diversified its product line,
 adding hydro-seed mulch and animal bedding in
 1988,  and an oil-absorbent product in 1991.
 According to vice-president George Villa, ACM's
 emphasis on innovation and diversification  has
 allowed it to survive when much of its compe-
 tition has not.  In fact, ACM is the only remain-
 ing cellulose plant in Illinois out of 50 such fa-
 cilities operating  in 1976.
               FEEDSTOCK
                  ACM accepts a wide range of scrap paper at
               its facility, including post-consumer magazines,
               newspaper, corrugated containers, and office waste
               paper (Table 25).

                  Because workers hand-sort material as it ar-
               rives in the plant, ACM accepts a greater mix of
               feedstock and rejects fewer loads of material than
               do similar operations.  The degree of contamina-
               tion that can be tolerated depends on the product
               being made. While ACM requires clean ONP and
               OCC feedstock to produce building insulation and
               absorbent material, it also utilizes "contaminated"
               feedstock — containing clay-coated paper and
               phone books — to produce animal bedding and
               mulch products. The company does not accept
               metal or plastic contaminates.

                  Collection of scrap paper within 90 miles of
               Minonk provides the cellulose plant with all the
38
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     -PAPER•
  Table 25  Feedstock Information
consumption
material
OCC, ONP, MP
(TRY)
21,800
recycled post-consumer
content
100%
content
100%
price
paid/ton
$0
                                          Source: Institute for Local Self-Reliance, 1992.
feedstock material it requires, with the majority
coming from in and around Bloomington, Illinois
(population 49,000,  located 20  miles south of
Minonk).  This was not always the case.  In the
late 1970s a shortage of scrap paper in the Mid-
west forced ACM to buy feedstock from Texas at
$100 per ton.  Today the company gets most of
its scrap paper for free, but will sometimes  pay
the shipping cost.
PROCESS
    ACM receives scrap paper in a holding bay,
where workers sort and  inspect the material by
hand, picking contaminants
out of the mix.  The material
runs through a hammermill,
which reduces it to small
pieces, ranging in size from
0.25 inches to 1.5 inch in di-
ameter.   A second  machine
screens the material and re-
turns oversized pieces to  the
hammermill. ACM diverts a
portion of the feedstock to a
mill which  produces paper
pellets,   used   as    oil
absorbants and as kitty litter.
                                       The  plant operates one
                                    twelve hour shift per day, at
                                    night to take advantage of
                                    off-peak electricity  rates
                                    (Table 26). A day shift pack-
                                    ages the material and ships
                                    the products  to  market.
                                    ACM ships its  insulation,
                                    mulch,  and animal bedding
                  immediately after production, limiting product in-
                  ventory costs. The absorbent can be packaged ac-
                  cording to  preference, in one of 100  styles of
                  casings made especially for the ACM product by
                  an outside  vendor.
                  PRODUCTS
                     ACM  manufactures four products at  its
                  Minonk facility:  building insulation, hydro-seed
                  mulch, animal bedding, and cellulose absorbent
                  (Table 27). The animal bedding, building insu-
                  lation, and mulch are standard to  the cellulose
                  industry, while the absorbent is an ACM spe-
 Table 26   Process Information
    ACM manufactures all of
its cellulose material on a
single production line. This
is feasible because the mate-
rial used in each product is
very similar, differing only in
the size  of the screens used
and the type  of  feedstock
accepted.  While the com-
pany produces mulch and
absorbent on a made-to-or-
der basis, building insulation
and animal bedding, enjoy
continuous markets.
           recycling level:
      feedstock input rate:
    production output rate:
production design capacity:
  capacity utilization factor:
      feedstock reject rate:
         waste generated:
        disposal methods:
               equipment:
             employment:
      scheduled operation:
         area requirement:
               plant size:
          warehouse size:
       energy requirement:
        water requirement:
tertiary
84TPD
NA
168 TPD
<60%
negligible
plastic and metal contaminants
landfill
shredder, hammermill, pellet mill
13 full time
260 days per year; 1.5 shifts per day
7 acres
33,000 square feet
20 semi-trailers on-site
NA
NA
                                                                        Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                                               39

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     -AMERICAN CELLULOSE MANUFACTURING, INC.-
   Table 27  Product Information

products
manufactured
absorbent
animal bedding
hydro-seeding mulch
cellulose building insulation
total
[a] ILSR estimate.
flj] 1989 figure.
production
rate
(TRY)
NA
NA
NA
NA
<27,000 [a]


total
recycled
content
90%
100%
100%
80%
80-100%


post-
consumer
content
90%
100%
100%
80%
80-100%


estimated
annual
sales
NA
NA
NA
NA
$500,000 [b]


gross
revenue
per ton
NA
NA
NA
NA
NA


value
added
per ton
NA
NA
NA
NA
NA


                                                                        Source: Institute for Local Self-Reliance, 1992.
 dally. ACM claims that its insulation is a supe-
 rior insulator compared to similar products made
 from virgin material, and  therefore more cost
 effective.  Getting people to use the products, says
 ACM's Villa, "is really a matter  of educating the
 public and changing industry specifications."

    ACM's star product, The  Oil Gone™ absor-
 bent, is marketed for use in small applications:
 incidental spills, truck rollovers, car accidents, and
 gas spills, as well as leaks and  drips that occur
 in industry on a  daily basis.  The Oil  Gone™
 boasts a  number of advantages over products
 made from virgin materials  like  clay, peat moss,
 petrochemicals, and corn cobs.  The product is
 made from 100 percent recycled newspaper, is less
 expensive than other materials, and is non-toxic.
 Tests conducted by ACM  conclude that their
 material  is 50 percent more absorbent than  the
 most popular oil  absorbent (made of polypropy-
 lene), and close  to  four times as absorbent as
 certain virgin-material-based  absorbents  in use
 today. ACM reports that a 3"x 48" pillow of The
 Oil Gone™ absorbs 1.4 gallons of #2 fuel oil, while
 the 3M-brand Powersorb™ of the same dimensions
 absorbs 1.01 gallons.   Other materials absorb
 between 0.36 and 0.76  gallons of the oil.

    ACM products are used by different industries
 across the region.  Industrial manufacturers, ma-
 chine shops, fuel depots, marinas, emergency re-
 sponse groups, and others use absorbents to
 quickly absorb liquid spills.   Animal bedding is
used in Illinois horse stables and farms and in the
dairy, beef, pork, and poultry industries. State and
local highway  departments, landscapers, and de-
 velopers use ACM hydro-mulch, while regional
 building contractors and homeowners use Ther-
 mal Seal™ cellulose insulation in new home con-
 struction and retrofits.

    ACM has experimented with other products
 made from recycled paper in the past, but found
 the likes of paper-based fireplace logs and worm
 bedding to be unprofitable.  The company has
 plans to produce a cat litter from pelletized ONP
 with a higher absorbency and lower dust content
 than current clay-based products.  ACM's cat lit-
 ter will be available in 1993.
ECONOMICS
    ACM received a $28,000 market development
grant from the Illinois Department of Energy and
Natural Resources for the purchase of the paper
pelletizer in 1992. Beyond this, ACM holds much
of its economic information as confidential (Table
28).
REPLICABILITY
    The mulch, bedding, and insulation operation
at ACM is fairly standard to the industry, and
uses fully replicable technology. The manufactur-
ing of the absorbent, however, requires knowledge
and experience not readily available for replica-
                                   Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     - PAPER -
  Table 28   Economic Information
      initial capital cost:
            labor cost:
          energy cost:
        feedstock cost:
        total O&M cost:
        gross revenue:
   capital cost/capacity:
       O&M cost/sales:
   gross revenue/sales:
$150,000(1977)
NA
NA
$0 (for scrap)
NA
$500,000 (1989)
$890 per TPD capacity
NA
NA
tion.  The cellulose used to make the absorbent
is carefully tested and selected by the company.
ACM is considering expanding its operation
outside  of Minonk, but has no concrete plans to
do so as of yet.
CONTACTS
George Villa, Vice President
American Cellulose Manufacturing, Inc.
Route 1,  Box 162
Minonk,  Illinois  61760
309-432-2507
309-432-2703 fox
                       Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                     41

-------
 AMERICAN ENVIRONMENTAL
  PRODUCTS,  INC.
                    Location:

                Start-up Date:

        Recycled Material Used:



                    Products:



     Production Design Capacity:
Elkwood, Virginia

1990

old newspaper
old corrugated containers
phone books
cellulose building insulation
hydro mulch
cellulose fiber asbestos replacement
200 TPD
COMPANY BACKGROUND
   American Environmental Products, Inc. (AEP)
was founded in 1990 by the Washington Re-
sources Group to take advantage of new technol-
ogy to produce a high-quality cellulose building
insulation from recovered material available in
northern Virginia. The insulation is made from
low density cellulose, a material which promises
to revolutionize the way Americans insulate their
homes.  Lightweight, highly insulative, and easy
to install, the material insulates better than both
traditional cellulose insulation and mineral fiber
(fiberglass)  material.

   AEP is  a  wholly owned  subsidiary of Wash-
ington Resources Group, an organization formed
by Washington  Gas Light Company in order to
diversify the  utility  into energy related invest-
ments.  According to Group executives, the orga-
nization has shifted emphasis from energy related
diversification to focus on recent interest in envi-
ronmentally sound products. In addition to its
insulation,  the  company also makes a hydro-
mulch and a cellulose fiber substitute for asbestos.
                FEEDSTOCK
                   AEP consumes 120 tons per day of OCC,
                phone books, and newspaper (both ONP and
                over-issue — newspaper that is printed but not
                sold) and 20 tons per day of virgin material (Table
                29). Virgin material includes talc,  limestone (used
                in the asbestos-replacement product), and fire
                retardant (used in the cellulose building insula-
                tion).

                   AEP garners OCC and ONP (#6 and #8 baled)
                from communities in northern Virginia, and gets
                used phone books from phone companies in Vir-
                ginia, Pennsylvania, and Maryland (550 tons in
                1991). The plant uses approximately 50 tons per
                day of newspaper over-issue. Over-issue contains
                none of the clay-coated inserts often present in
                ONP and,  therefore, makes superior insulation
                and asbestos-replacement material.

                   AEP pays up to $20 per ton (delivered) for
                over-issue, and between $7.50 and $12.00 per ton
                for post-consumer newspaper (baled and deliv-
                ered). Phone books are accepted for free.
42
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                       -PAPER
   Table 29  Feedstock Information
consumption
material
ONP (over-issue)
ONP (baled)
phone books
OCC
virgin additives
total
CTPY)
13,000
17,420
520
260
5,200
36,400
recycled post-consumer
content
100%
100%
100%
100%
0%
86%
content
100%
100%
100%
100%
0%
86%
price
paid/ton
$15-20
$7-12
$0
$15
NA
NA
                                               Source: Institute for Local Sell-Reliance, 1992.
                        flux — the radiant heat
                        level below which insula-
                        tion wifl not burn. To de-
                        termine settled density of
                        insulation, which affects
                        the material's insulating
                        qualities, lab personnel
                        compact the cellulose ma-
                        terial  on a shaker that
                        simulates prolonged set-
                        tling.  To calculate the
                        starch content, which af-
                        fects  its  resistance to
                        pests, workers measure
                        pH levels.
PROCESS
    AEP receives feedstock in two bays, one con-
taining over-issue news and the other OCC and
ONP.  The facility accepts phone books separately
for shredding in a specially built machine.  All
other material is shredded using standard shred-
ders (Table 30).

    A  weigh-belt continuously weighs the news-
paper as it emerges from a shredder to ensure that
fire-retardant chemicals are added in exact propor-
tion to the shredded newspaper.  The weighing
process is  essential in order to ensure consistent
product safety and performance. After weighing,
the newspaper and  additives are  combined and
sent through the fiberizer, manufactured by
Advanced Fiber Technology (AFT), of Bucyrus,
Ohio.   The AFT machine reduces the paper into
individual fibers, producing a low-density cellu-
lose material with superior insulative qualities.
AEP uses  a  large vacuum  device to collect the
excess dust from  the process and reprocesses it
into a mulch product.

    Mulch is manufactured by sending OCC and
ONP through a standard hammermill, reducing
them to small pieces.  Mulch is dyed green be-
fore packaging.

    Packaging occurs on-site. Mulch is packaged
in 50-pound bags, and insulation in 30-pound
bags.  The bags are loaded on semi-trailers for
delivery to markets.

    AEP tests both insulation and mulch continu-
ously throughout production. Mulch is tested for
color and consistency; insulation is lab-tested for
settled density, starch content, and critical radiant
    Lab workers test radiant flux by heating a bed
of insulation to progressively higher radiant tem-
peratures, then setting the hottest portion on fire.
As the flame spreads towards cooler temperatures,
chemicals within the insulation work to extinguish
it. If the flame continues past radiant heat of 0.12
watts/cm^, the insulation  fails,  and is made into
mulch product. Radial flux is perhaps the most
important test AEP performs.   For years groups
representing non-cellulose insulation manufactur-
ers have questioned the flame  resistance of cel-
lulose.  Testing for critical radiant flux ensures
consistent flame resistance in all of the insulation.
To ensure consistency AEP devotes five full-time
employees to product testing.   Tests are run on
each of the  two lines every two hours.

    The company employs 100 workers earning
an average wage of $8 per hour. AEP provides
full benefits.
PRODUCTS
    Cellulose Insulation: AEP's insulation manu-
facturing process uses cellulose fiberization tech-
nology engineered by Advanced Fiber Technol-
ogy. Fiberization separates individual newspaper
fibers rather than grinding the material, resulting
in a lower-density insulation than a hammer-
milled product, and thus able to insulate a greater
area using the same amount of material.  The low
density and increased adhesion of fiberized insu-
lation means it can be blown into walls using one-
third the water that hammer-milled insulation re-
quires.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                           43

-------
    -AMERICAN ENVIRONMENTAL PRODUCTS, INC.-
  Table 30  Process Information
            recycling level:
       feedstock Input rate:
     production output rate:
 production design capacity:
   capacity utilization factor:
       feedstock reject rate:
          waste generated:
         disposal methods:
               equipment:
              employment:
       scheduled operation:
          area requirement:
                plant size:
           warehouse size:
       energy requirement:
         water requirement:
tertiary
140TPD
140TPD
200 TPD
70%
0%
none
NA
2 hammermills, 1 dust collector, 1 AFT Fberizer®
100 full time, 5 part time; 12 skilled, 93 unskilled
260 days per year; 2 shifts per day
6 acres
75,000 square feet
NA
NA
NA
    For years pundits have extolled the virtues of
cellulose for insulating homes.  Unlike fiberglass,
which allows air seepage through the wall, the
loose-fill cellulose completely covers walls and
ceilings.  The difference is most apparent in wall
sections  where  plumbing and wiring obstruct
fiberglass batting:   here, cellulose  simply fills
around such obstacles.
                             Installing cellu-
                         lose inside walls has,
                         till now,  been cum-
                         bersome and  expen-
                         sive.  Traditionally
                         contractors used ei-
                         ther a "drill and fill"
                         method — drilling
                         holes into the drywall
                         and blowing in cellu-
                         lose  — or a "wet-
                         spray application" —
                         mixing   insulation
                         with water and blow-
                         ing  it between joists
                         when wet then wait-
                         ing for it to dry be-
                         fore  applying dry-
                         wall. By contrast, the
                         low-density insula-
                         tion  produced  by
                         AEP adheres to wall
                         joists with a modi-
                         cum of water  and
                         requires no wait be-
                         fore  drywall is  ap-
                         plied. The company
                         has  designed a self-
                         contained application
                         system which allows
                         two person teams to
apply the insulation as quickly  as they could in-
stall fiberglass bats (Table 31).

    Mulch:  AEP produces its hydro-mulch from
recovered paper.  At a separate facility some of
the paper mulch is blended with grass seed  and
virgin mulch material — ground wood and bark.
Sold as "Cellin Mulch," the product is used by
                                              Source: Institute for Local Self-Reliance, 1992.
  Table 31  Product Information
                                                                  yL. '
production
products rate
manufactured (TPY)
hydro-mulch
cellulose building insulation
special fibers
total
18,200
9,100
9,100
36,400
total post-
recycled consumer
content content
100%
80%
90%
93%
100%
80%
90%
93%
estimated gross value
annual revenue added
sales per ton per ton
$2,500,000
$2,800,000
$700,000
$6,000,000
$140
$310
$77
$170
$130
$290
$84
$160
                                                                         Source: Institute for Local Self-Reliance, 1992.
44
       Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                    - PAPER-
  Table 32   Economic Information
     initial capital cost:
           labor cost:
          energy cost:
       feedstock cost:
       total O&M cost:
       gross revenue:
  capital cost/capacity:
      O&M cost/sales:
  gross revenue/sales:
NA
$1,700,000 per year
NA
>$500,000 per year
NA
$6,000,000 per year
NA
NA
$170 per ton sold
                    Source: Institute for Local Self-Reliance, 1992.
highway departments and park services to assist
turf growth alongside highways and other areas
requiring large grass coverage.

   Asbestos Replacement Fibers: Asphalt-roof-
ing companies and rubber-products manufactur-
ers are the primary markets for AEP's  "custom
fibers." These fibers are made of finely ground
over-issue newspaper mixed with talc and lime-
stone. They replace asbestos as a fibrous filler in
asphalt roofing, caulking, and rubber products.
ECONOMICS
    Annual sales for AEP is over $6 million (Table
32).  Labor costs for 100 workers earning $8 per
hour is approximately $1.7 million per year, while
annual feedstock costs are more than $500,000.
Further cost information is not available from the
company.
REPLICABILITY
   All  technology used by  AEP  is  fully
replicable.  Location near a major producer of
newspaper is important in obtaining over-issue
news in quantity.  Advanced Fiber Technology's
Fiberizer technology is currently used by nine
cellulose plants around the country, according to
Dick Leuthold, inventor of the technology.
                           CONTACTS
                           Tom Ward, Vice President, Marketing
                           American Environmental Products, Inc.
                           P.O. Box 38
                           Elkwood, Virginia  22718
                           703-825-8000
                           Dick Leuthold, President
                           Advanced Fiber Technology
                           P.O. Box 5016
                           121 East Warren
                           Bucyrus, Ohio  44820
                           419-562-8444
                           419-562-9888 fax
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                    45

-------
THE CHESAPEAKE
PAPERBOARD  COMPANY
                    Location:

               Start-up Date:

        Recycled Material Used:
                   Products:

    Production Design Capacity:
Baltimore, Maryland

1910

mixed paper
old corrugated containers
old newspapers
high grade deinked

boxboard

250 TPD
COMPANY BACKGROUND
   James E. Smith, a box maker, founded The
Chesapeake Paperboard Company in Baltimore in
1910.  The company originally made paperboard
from virgin pulp, but for economic reasons shifted
to waste-paper after a few years.  The recycling
tradition at this family-owned mill has continued
ever since. Today, James Smith's son and grand-
son produce boxboard from various grades of
waste  paper.

   Boxboard manufacturers have traditionally
used waste paper as their feedstock — many
plants currently make boards with 100 percent
scrap content. What makes Chesapeake notewor-
thy is that it uses only post-consumer waste paper,
and can use almost any grade.  The plant uses
no chemical deinking agents, nor does it rely on
clay coating to produce a clean board surface.

   Besides Chesapeake, the Smith family also
owns two converting mills in Maryland: one in
Hunt Valley and the other in Millersville.
                FEEDSTOCK
                   "If you can tear it we can use it," says Murrell
                Smith, Jr., executive vice-president of the com-
                pany. The feedstock pile in Chesapeake's park-
                ing lot holds everything from junk mail, books
                and magazines, to OCC, ONP and computer
                printout. The only waste-paper grades Chesa-
                peake doesn't accept are carbon paper, waxed
                paper, foil-lined paper and poly-coated paper.

                   Chesapeake takes pride in being a "generator
                friendly" company. Waste paper can be brought
                to the plant in any form:  commingled or sorted,
                baled, loose or in boxes.  Because the plant is
                located next to Interstate-95 and Baltimore Har-
                bor, it is very accessible.  Waste paper comes to
                the company from a variety of sources, including
                municipalities, brokers, organizations, and offices.
                The company may charge a tipping fee of up to
                $50 per ton for some of the low-grade paper, but
                a significant amount of the mixed paper is hauled
                in free of charge.  Chesapeake pays $60 to $170
                per ton  for the higher grades (Table  33).
                               Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - PAPER -
  Table 33  Feedstock Information
consumption recycled post-consumer
material (TRY) content content
mixed paper
high grade
total
49,400
24,700
74,100
100%
100%
100%
100%
100%
100%
price
paid/ton
-$50-0
$60-170
-$13-57
    Chesapeake can use all  this because the
boards it makes have eight layers.   High-grade
paper (such as computer printout and white led-
ger) account for approximately one-third of the
feedstock, and form the top layer of some boards.
The bottom layer consists of ONP or OCC. The
middle layers are low-grade mixed paper.
                                 around cylinders.  Water is
                                 gradually  squeezed out of
                                 the sheets through the felts.
                                 All eight layers are formed
                                 simultaneously,  and  are
                                 immediately pressed  to-
                                 gether.  The board is dried
                                 with steam dryers, auto-
                                 matically cut to size, and
                                 sent  to  box-manufacturing
                                 plants.   Because of  the
                                 high-grade waste paper
                                 used to  form the top layer,
             no clay is needed to produce a printing  surface.

                 Less than 10 percent of incoming feedstock is
             rejected during the various cleaning stages.  At
             present, this sludge is taken to an incinerator, but
             Chesapeake hopes to build a cogeneration facility
             in the near future.  The plant's main energy source
                                           Source: Institute for Local Self-Relianca. 1992.
PROCESS
    Waste paper is dumped in the
parking lot  behind the mill.  If
incoming mixed paper contains a
significant portion of high grades,
workers sort the mix to upgrade the
stock. The waste paper is manually
fed into one  of five  hydrapulpers.
A single continuous pulper processes
low-grade paper for the filler, or
inside layers of the board.  Two
batch pulpers handle the stock used
for the front layer, and the remain-
ing two pulpers produce the back
layer. In the pulpers, paper is mixed
with warm water and agitated to
separate the fibers. Chesapeake does
not use detergents or chemicals to
clean its pulp, nor bleach to lighten
it. Some soda ash is  added to neu-
tralize  the pH.  A ragger in the
pulper removes heavy contaminants
like metal, plastic and strings.  The
pulp then goes  through several
cleaning processes, including a cen-
trifugal cyclone and vibrating
screens.

    Through  a head box, the stock
enters one of two paper machines.
The paper forms on felts that roll
Table 34     Process Information
           recycling level:
      feedstock input rate:
    production output rate:
production design capacity:
  capacity utilization factor:
      feedstock reject rate:
         waste generated:
        disposal methods:
              equipment:
             employment:
      scheduled operation:
         area requirement:
               plant size:
          warehouse size:
      energy requirement:
        water requirement:
secondary
220 TPD
200 TPD
250 TPD
80%
9%
sludge
incinerator
pulper, centrifugal cleaners,
vibrating screens, refiners,
2 paper machines, dryers
190 full time
337 days per year; 24 hours per day
11 acres
NA
NA
NA
NA
                                                                        Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                        47

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    -THE CHESAPEAKE PAPERBOARD COMPANY -
  Table 35  Product Information
production
products rate
manufactured (TPY)
boxboard 67,400
total post- estimated
recycled consumer annual
content content sales
100%
100% $20,220,000 [a]
gross value
revenue added
per ton per ton
$300 [a] $250 [a]
[a] Assuming the average value of Chesapeake's boxboard is $300 per ton.
                                                                        Source: Institute for Local Sell-Reliance, 1932.
is natural gas, with  number six fuel oil as a
backup.  The plant also has a wastewater-treat-
ment system on site.  Treated wastewater is dis-
charged into the city sewer system.  Table  34
summarizes Chesapeake's manufacturing process.
PRODUCTS
    Chesapeake manufactures boxboards  with
different surfaces:  the top surface can be either
white or kraft, and the bottom can be OCC or
ONP. The thickness of the paperboard can range
from l/32nd to l/16th of an inch.  Chesapeake's
  Table 36  Economic Information
      initial capital cost:
             labor cost:
           energy cost:
        feedstock cost:
        total O&M cost:
        gross revenue:
   capital cost/capacity:
       O&M cost/sales:
   gross revenue/sales:
$20,000,000 [a]

$6,500,000 [b]

NA
$2,600,000 per year [c]

NA

$20,000,000 [d]
$80,000 perTPD capacity [a]
NA

$300 per ton sold
  [a] This is an estimate for a similar plant today. The figure
    excludes the cost of land and buildings.
  [b] Assuming average wage equivalent to the industry average,
    §12.60 per hour.
  [c] Assuming average feedstock cost of $35 per ton.
  [d] Assuming the average value of Chesapeake's boxboard is
    $300 per ton.
                           products are used regionally by box manufactur-
                           ing plants to make folding and set-up boxes.
                           Chesapeake's manufacturing process adds a value
                           of approximately $250 to each ton of wastepaper
                           it consumes  (Table 35).
                           ECONOMICS
                              Because the plant was started in 1910, its initial
                           capital cost is not relevant today.  But according
                           to company executives, a similar mill would cost
                           approximately $20  million,  excluding land and
                           buildings (Table 36). The family-owned company
                                prefers to keep confidential all other infor-
                                mation regarding costs and finances.
REPLICABILITY
    Chesapeake uses conventional equip-
ment  to manufacture boxboard, so wher-
ever both waste paper and buyers are in
steady supply, the mill is replicable. Even
if the supply of waste paper is limited, a
smaller mill can be built.  There are sev-
eral boxboard mills operating in other parts
of the country that produce a similar prod-
uct with  significantly lower capacity  than
Chesapeake's.
                                 CONTACTS
                                 Murrell E. Smith, Jr., Vice President
                                 The Chesapeake Paperboard Co.
                                 Fort Avenue & Woodall Street
                                 Baltimore, Maryland  21230
                                 410-752-1842
                                 410-837-5526 fax
                          Source: Institute for Local Self-Reliance, 1992.
48
           Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises

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                        FIBREFORM  CONTAINERS, INC.
                    Location:

                Start-up Date:

        Recycled Material Used:



                    Products:
Germantown, Wisconsin

1977

old newspaper
mixed paper
old corrugated containers

protective packaging products
molded nursery products
    Production Design Capacity:   10 TPD
COMPANY BACKGROUND
   Fibreform Containers, Inc. began making con-
tainers for the nursery industry in 1977.  Flower
pots made from molded pulp had been developed
some 10 to 15 years earlier and a lucrative mar-
ket had grown up around the product. However,
plastics soon began replacing molded pulp, and
Fibreform turned to other  products.

   In 1980, the company began making dunnage,
a packing material, to protect furniture and other
appliances during shipment. Business has been
especially brisk over the last few years,  as the
demand for environmentally friendly packaging
has increased.  The Fibreform facility currently
runs at  full capacity, producing both nursery
products and protective packaging.
FEEDSTOCK
   Fibreform accepts a wide variety of recovered
paper at its facility (Table 37). Although the com-
pany collects most of its ONP and mixed paper
from the Milwaukee area and receives corrugated
                material from a local box manufacturer, it has ob-
                tained material from other locations. At times, it
                has integrated such special items as excess  IRS
                forms into its molded products.

                   Although the company can accept a wide
                range of paper, it lacks the necessary equipment
                to remove heavy contaminants such as metal and
                plastics from its paper and does not accept feed-
                stock containing them.  Since molded pulp does
                not require deinking, ink is  not considered a
                contaminant.
                PROCESS
                   Incoming material is mixed with water in a
                hydrapulper, and broken down to a slurry.  This
                pulp is poured into wire molds, through which
                the water drains.  The resulting pieces are then
                baked to remove remaining moisture.

                   Fibreform builds molds for each of the shapes
                (forms) it produces.  The company currently has
                over 150 different molds in stock and can make
                a new one for production runs over 2,000 pieces.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                      49

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    -FIBREFORM CONTAINER, INC. •
  Table 37  Feedstock Information
consumption recycled post-consumer
material (TPY) content content
ONP & mixed paper
corrugated
total
1,560
1,040
2,600
100%
100%
100%
100%
0%
60%
price
paid/ton
$0
$40-75
$16-30
However, the company is currently avoiding small
runs, because larger ones of up to one million
pieces per mold are more cost-effective for the at-
capacity facility.

    The molded pulp manufacturing process re-
quires a large amount  of water.  However, to
minimize its demand on the public water supply,
the company utilizes cisterns that store rain wa-
ter  from  the roof  and
sump.  Although the pro-
duction process recycles all
the water  it captures (by
returning it to the pulper),
85  percent of incoming
water is lost to evaporation
(Table 38).
                                               high degree of
                                               resiliency  and
                                               cushioning.  Al-
                                               though Fibreform
                                               sells a variety of
                                               stock corner and
                                               edge protectors,
                                               most sales consist
                                               of custom-design
                                               shapes to fit indi-
                                               vidual products,
                                               and it will make
                                               special molds for
                  orders exceeding 2,000 pieces.  Pieces can be dyed,
                  left uncolored, or produced  white by  utilizing
                  white  feedstock.

                      Prices for standard packaging pieces run be-
                  tween $35 and $70 per 1,000  units for the small
                  pieces, and $90 to $230 per 1,000 for large side-
                  protectors.  This translates to  an average of $600
                  per ton of product (Table 39).
                                                 Source: Institute for Local Self-Reliance, 1992.
Table 38  Process Information
PRODUCTS
    Rbreform makes mold-
ed pulp into both nursery
containers and industrial
packaging material.  Pro-
duction  rates for these
products vary  with  the
seasonal demand for the
nursery items.

    Fibreform packaging
comes in many shapes and
sizes, including end caps,
comer caps, trays and pads
to protect items such as
furniture, appliances and
stereo speakers  during
shipping.   Ribs integrated
into the dunnage provide a
            recycling level:
       feedstock input rate:
     production output rate:
 production design capacity:
   capacity utilization factor:
       feedstock reject rate:
          waste generated:
         disposal methods:
               equipment:
              employment:
       scheduled operation:
         area requirement:
                plant size:
           warehouse size:
       energy requirement:


         water requirement:
secondary

10TPD

10TPD
10TPD

100%
1%

minimal
landfill

hydrapulper, molds, oven
28 full time; 10 skilled, 18 unskilled

260 days per year; 3 shifts per day
2.5 acres
25,000 square feet

none
1,680,000 kWh per year of electricity;
220,000 therms per year of natural gas

2,300 gallons per day
                                                                        Source: Institute for Local Self-Reliance, 1992.
50
  Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     PAPER
  Table 39 Product Information
production
products rate
manufactured (TPY)
dunnage
flower pots
total
1,820
780
2,600
total post-
recycled consumer
content content
100%
100%
100%
60%
60%
60%
estimated
annual
sales
$1,100,000
$700,000
$1,800,000
gross
revenue
per ton
$600
$900
$690
value
added
per ton
$570
$870
$660
                                                                       Source: Institute for Local Self-Reliance, 1992.
    Fibreform products are intended to replace
folded corrugated and expanded polystyrene
packing blocks, as well as open up new market
niches.  Unlike expanded polystyrene,  dunnage
made from molded  pulp contains no  blowing
agents, and can be recycled along with ONP.
Fibreform's markets are generally  national in
scope, however it currently exports to Australia,
covering the markets of a  similar facility that was
recently shut-down due to fire.
ECONOMICS
           A new facility costing $2 million would real-
       ize a pay-back period of three or four years,
       according to Fibreform. Ideally, a plant would be
       located near an industrial center with high levels
       of demand for molded pulp dunnage products.
       CONTACTS
       Ed Gratz, President
       Fibreform Containers, Inc.
       N 115 W 19255 Edison Drive
       Germantown, Wisconsin  53022
       414-251-1901
       414-251-1941 fax
    Initial capital cost for the replication of the
Germantown facility would run between $1.5 and
$2 million, although the current facil-
ity, built in 1977, cost less. Operation
and maintenance costs are low com-
pared  to  the  initial capital outlay,         Table 40 Economic Information
according to the company.
    Fibreform   reports  spending
$10,000 per month on natural gas and
$7,000 per month on electricity (Table
40).
REPLICABILITY
    All the technology at Fibreform is
fully replicable, and the company is
actively seeking expansion opportuni-
ties. In 1986, it provided  technologi-
cal assistance in the construction of a
similar facility overseas.
    initial capital cost:
          labor cost:
        energy cost:
      feedstock cost:
      total O&M cost:
      gross revenue:
 capital cost/capacity:
     O&M cost/sales:
 gross revenue/sales:

[a] ILSR estimate.
$1,750,000(1992)
$650,000 per year
$204,000 per year
$62,400 per year [a]
NA
$1,800,000 per year
$175,000 perTPD capacity [a]
NA
$690 per ton sold [a]
                                                                       Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                 51

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GARDEN  STATE PAPER
COMPANY,  INC.
                    Location:
                Start-up Date:
        Recycled Material Used:
                    Products:
    Production Design Capacity:
Garfield, New Jersey
1961
old newspaper

newsprint
640 TPD
COMPANY  BACKGROUND
   Garden State Paper Company, Inc. (GSP) is
the first mill in the world to commercially pro-
duce 100 percent recycled newsprint from old
newspaper.   In the 1940s, Richard B. Scudder,
publisher of a major metropolitan newspaper, was
troubled by the amount of old newspaper that
was being discarded  and  began experimenting
with  ways of making  new  paper from old.  This
led to the inception of  the Garden State Paper mill
on the banks of the Passaic River in Garfield, New
Jersey in 1961. Fifteen years later, Garden State
Paper was producing more than 10 percent of the
newsprint made in the United States, all from
recovered newspaper.   Media General, Inc. pur-
chased Garden State Paper in 1970.
FEEDSTOCK
   GSP gets its ONP from municipal recycling
programs and volunteer collection drives.  The
paper is sorted  and prepared at the Bruno &
EXElia recycling centers, a GSP subsidiary, to meet
the quality requirements of the mill.  GSP can only
use newspaper that is dry, clean and free of
                contaminants such as phone directories, old
                magazines, junk mail, and cardboard.  Bruno &
                D'Elia has a pricing system that varies depend-
                ing on the delivery arrangements made with each
                supplier, as well as the ONP grade.

                   Newsprint mills in general have a  varied
                pricing structure for ONP. Prices can vary over
                a range  from a low of  negative $60 per ton (tip-
                ping fee) to as much as $50 per ton paid to  the
                source.  GSP holds its  feedstock prices as confi-
                dential (Table 41).
                PROCESS
                   Trucks  unload ONP onto the mill floor.
                Workers dump loose paper onto a vibrating con-
                veyor that carries it to one of two pulpers. Baled
                newspaper is carried from the warehouse to the
                pulpers on lift trucks. In the pulpers, warm water
                and deinking chemicals are mixed with the paper,
                and rotor blades break it down to fibers.  The
                pulpers produce 900 tons of pulp daily.

                   To remove heavy contaminants,  the pulp
                passes through several screening stages. It is next
52
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - PAPER-
  Table 41   Feedstock Information
            consumption  recycled   post-consumer     price
   material         (TPY)   content         content   paid/ton
      ONP
280,000    100%
100%
NA
                                  Source: Institute for Local Self-Reliance, 1992.
washed on rotating cylinders.   During this pro-
cess water passes through screens on the rollers,
carrying away fine fibers and ink particles, and
leaving behind long, reusable fibers.  At this point
the stock  consists of 0.5 percent fiber and 99.5
percent water.  The GSP deinking  process does
not involve dioxins or any other toxic by-products.

    The pulp is fed into one of two paper-mak-
ing machines:  a Fourdrinier or a Papriformer
             (Table 42).  The Fourdrinier has a
             screen loop that circulates at more
             than 25 miles per hour.  Pulp is
             spread on this  screen, which then
             passes over hydrofoils and vacuum
             boxes that remove  some of the
             water.  The machine  has been
             modified with the addition of a 50-
             ton former with a second screen.
The Papriformer has two converging screens that
move at more than 30 miles  per hour, as water
is drawn  through the screen both above and
below the sheet.  In the Papriformer, the paper
travels only six feet during  the entire forming
process.

   The damp paper is pressed over steam-heated
rollers to reduce moisture  content from 80 per-
cent  to  7 percent. It is then squeezed between
  Table 42  Process Information
            recycling level:
        feedstock input rate:
     production output rate:
 production design capacity:
   capacity utilization factor:
       feedstock reject rate:
          waste generated:
         disposal methods:
                equipment:


              employment:
       scheduled operation:
          area requirement:
                 plant size:
           warehouse size:
        energy requirement:
         water requirement:
             primary
             800 TPD
             640 TPD
             640 TPD
             100%
             20%
             sludge, fiber fuel
             landfilled, burned for energy recovery
             pulper, screens, washers, Fourdrinier and Papriformer
             paper-making machines, rewinding and slitting machine
             450 full time
             364 days per year; 24 hours per day
             NA
             NA
             NA
             134 million kWh per year of electricity [a]
             7,000,000,000 gallons per day [a]
   [a] Figure from the 1992 Lockwood-Post's Directory of the Pulp, Paper and Allied Trades.
                                                                         Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                               53

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    -GARDEN STATE PAPER COMPANY, INC.-
  Table43  Product Information
production total post- estimated gross value
products rate recycled consumer annual revenue added
manufactured (TRY) content content sales per ton per ton
newsprint 240,000 100% 100%
NA NA NA
                                                                        Source: Institute for Local Self-Reliance, 1992.
steel rolls (calendered) to produce a smooth fin-
ish.

    The entire process, from dumping the news-
paper loads to wrapping  the rolls of finished
newsprint, is computer controlled.

    The short fibers captured in the recycling pro-
cess, known as fiber fuel, are currently dewatered
and burned as fuel. Wastewater generated by the
manufacturing process is treated  by  the  Passaic
Valley Sewage Authority.
PRODUCTS
    GSP's sole product is its 100 percent recycled
newsprint. This paper is competitive in quality,
brightness and price with its virgin  counterpart
(Table 43).
ECONOMICS
    Much of GSP's financial information is con-
sidered proprietary.  The company's sales  of re-
cycled newsprint increased in 1991 in spite  of the
sluggish economy.  Due to the fact that the mill
is more than 30 years old, initial capital costs are
not pertinent.  However, GSP has recently in-
vested over $25 million in process improvements.

    Wastewater treatment costs rose 57.7 percent
in 1991 to $6.8 million per year.  This was  offset
by cost control measures and a 1 percent decline
in total energy costs.

    The plant's proximity to its markets has re-
sulted in a low cost for collecting overissue  news-
                print from publishers and printers. Additonally,
                this closeness to markets helps customers contain
                their  transit-damage and inventory costs.
                 REPLICABILITY
                    The technology used by GSP is proprietary,
                 but it can be licensed. Currently, four newsprint
                 mills in the United States and Mexico are either
                 licensees or equity affiliates of GSP, including FSC
                 Paper  (Alsip, Illinois), Southeast Paper (Dublin,
                 Georgia), Pronapade (San Luis Potosi, Mexico) and
                 Smurfit Newsprint  of California (Pomona, Califor-
                 nia).  Urban communities offer a dependable
                 source of raw material, as well as a steady prod-
                 uct market, to such a mill.

                    A new subsidiary of  Garden State Paper, GSP
                 Technologies Group, which formed in 1991, offers
                 its expertise to other companies in the papermak-
                 ing industry around the world.  It lends assistance
                 with mechanical,  chemical and environmental
                 problems related to recycling paper, as well as
                 technical assistance with new mills and mill con-
                 versions.
                 CONTACT'S
                 Margo Lane, Communications Specialist
                 Garden State Paper Company, Inc.
                 669 River Drive Center 2
                 Elmwood Park, New Jersey  07407-1349
                 201-796-0600
                 201-796-8470 fax
54
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                          HOMASOTE COMPANY
                     Location:

                Start-up Date:

        Recycled Material Used:

                    Products:



     Production Design Capacity:
West Trenton, New Jersey

1909

old newspaper

structural fiberboard
roofing insulation
packaging material

350 TPD
COMPANY BACKGROUND
   Homasote Company was founded in 1909 by
Eugenius Outerbridge, whose family ran a success-
ful shipping operation out of Newfoundland,
Canada. Working for the company in England at the
turn of the century, Eugenius stumbled upon the
Sundealia Company (Sunbury, England), which was
using discarded textiles and paper to make a home-
construction board. Envisioning a market for the
product in the United States, Outerbridge purchased
the process for $4,000 and set up the Agasote
Millboard Company on the site of an old paper plant
in Trenton, New Jersey.

   Eighty years later, the re-named HomasoteCom-
pany remains at this site, and is the nation's oldest
manufacturer of recycled-paper building material.
The company has expanded markets for its board by
adding color choices, urethane insulation, lamina-
tion, and a die-cutting processes that makes packing
dunnage; however, the basic board remains the same.
FEEDSTOCK
   Homasote Company pulps between 250 and 350
tons of ONP per day. This paper comes from numer-
ous sources, including the Mercer and Burlington
                County (New Jersey) recycling programs. The facil-
                ity accepts the material loose or inbales. Clay-coated
                magazines and other non-ONP grades of paper are
                considered contaminants. Homasote also purchases
                polyisocyanurate, a material used to create foam
                insulation (Table 44).
                PROCESS
                    Homasote receives both baled and loose ONP.
                Baled ONP is briefly stored inside prior to pulping,
                while the loose material is dumped directly onto a
                conveyer feeding into a hydrapulper.   The
                hydrapulper produces a slurry by beating the ONP
                fibers in heated water. A drag line removes non-
                paper debris as the slurry is mixed with weather-
                and fire-resistant additives (formaldehyde- and as-
                bestos:free).

                    A 400 ton per day pulper operates continuously
                — three shifts per day — for five-day periods.  A
                second hydrapulper, with a 200 ton per day capacity,
                kicks in when demand is up, or when the  larger
                machine is being repaired.

                    Siphons carry the finished pulp from holding
                tanks to molds that are 8' x 12' and 8' x 14,' and 11
                inches deep. The molds close, extracting most of the
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                       55

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     •HOMASOTE COMPANY
   Table 44  Feedstock Information
consumption recycled post-consuner price
material fTPY) content content paid/ton
ONP
potyjsocyanurate
total
[a] ILSR estimate.
70,000 [a]
NA
NA

100%
0%
NA

100%
0%
NA

NA
NA
NA

 water, and reducing the thickness of the board.
 Conveyers carry the formed sheet through a com-
 puter-controlled press, which extracts more water
 and establishes the desired thickness. From the time
 it is poured to the time it emerges from the dryer, an
 8'xl2'Homasote®boardloses598gallonsof water,
 all of which are collected and returned to the pulper.
 Production of the  Homa-
 sote® board produces no
 wastewater.
                                       tals, and on Admiral
                                       Byrd's 1929 expedition to
                                       Antarctica, 56 men lived
                                       in huts built from the ma-
                                       terial.
                                           Homasote's  main
                                       product remains remark-
                                       ably similar to its original
                                       one first produced in 1909.
                                       It can be sawed, drilled
                                       and fastened like other
                                       boards, yet is a superior
                                       insulator to wood, gyp-
                                       sum, and other materials.
                                       Homasote® on walls,ceil-
                 ing or floors (beneath carpeting) provides thermal
                 and sound insulation, as well as cushioning. Roofers
                 use the board beneath tar roofing.

                    In the 80 years since its inception, Homasote has
                 diversified its product line, adding laminates, sur-
                 face textures, specialized die-cuts and an insulating
                                           Source: Institute for Local Self-Reliance, 1992.
    Workers laminate, shave
 and trim the finished boards
 as needed. Boards to be used
 for packing dunnage or insu-
 lation are carried to a sepa-
 rate section of  the facility
 where they are die-cut and
 laminated to order.

    Homasote Company em-
 ploys 250 workers: 160 at the
 plant, and 90 in the office
 (Table 45).
 PRODUCTS
    Turn-of-the-century rail-
 road-car manufacturers were
 the first to use Homasote
 products. The board's versa-
 tility, light weight, insulat-
 ing qualities and resistance
 to weathering also made it
 popular fora variety of build-
 ing uses. In World War I the
 U.S. Army used Homasote®
 board  to build field hospi-
                                    Table 45 Process Information
            recycling level:
       feedstock input rate:
     production output rate:
 production design capacity:
   capacity utilization factor:
      feedstock reject rate:
          waste generated:
         disposal methods:
               equipment:


             employment:
      scheduled operation:
         area requirement:
                plant size:
           warehouse size:
       energy requirement:
        water requirement:
secondary
250-350 TPD
NA
350 TPD
NA
2%
plastics, wire, non-ONP paper
landfill
2 hydrapulpers, 5 "formers"
(presses and dryers)
250 full time
230 days per year; 3 shifts per day
26 acres
600,000 square feet
NA
NA
NA
                                                                        Source: Institute for Local Self-Reliance, 1992.
56
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                   PAPER•
  Table 46  Product Information
products
manufactured
building board
insulated building board
packaging material
total
[a] ILSR estimate.
production total post- estimated gross value
rate recycled consumer annual revenue added
(TPY) content content sales per ton per ton
NA
NA
NA
<70,000 [a]

100%
75%
100%
NA

100%
75%
100%
NA

NA
NA
NA
NA

NA
NA
NA
NA

NA
NA
NA
NA

urethane foam. Today the company manufactures a
wide range of products for use in construction, reno-
vation, roofing and product shipping (Table 46).

    In 1970, Homasote introduced Pak-Line®, a re-
usable packaging material that companies use to
ship parts between plants. Pak-Line® is molded to
fitspedficelectronicparts,filmrolls,steeringmecha-
nisms, and other products. Pak-Line® material pro-
vides a  firm cushion for transit, and then, unlike
traditional materials, can be dismantled, returned
and reused up to 40 times. Ultimately, it can be
recycled with ONP.
ECONOMICS
    The current domestic downturn in home and
commercial construction has curtailed production at
the Homasote facility.  However, the versatility of
the board has allowed the company to diversify its
product line into non-construction products.

    Homasote currently holds all economic infor-
mation proprietary.
REPLICABILITY
   If demand for Homasote® board increases,
Homasote is prepared to increase capacity of the
West Trenton facility by 35 to 40 percent. According
to company executives, increasing the capacity at
the current plant would involve minimal capital
investment compared with siting a second facility.

   The forming line at Homasote is made up of
custom-designed equipment that is unique to the
Homasote® product. Individual elements, although
capital intensive, are replicable.
CONTACTS
Shanley E. Flicker, Chief Operating Officer
Homasote Company
P.O. Box 7240
West Trenton, New Jersey 08628-0240
609-883-3300
609-530-1584 fax
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                                            57

-------
 MARCAL  PAPER MILLS,  INC.
                      Location:

                 Start-up Date:

         Recycled Material Used:

                     Products:
     Production Design Capacity:
Elm wood Park, New Jersey

1939

mixed paper

bath tissue
facial tissue
paper towel
napkin
305 TPD
 CCXMDPANY  BACKGROUND
    In 1932, Nicholas Marcalus, an Italian immi-
 grant and self-taught engineer, founded Marcalus
 Paper Manufacturing Company in Bloomfield,
 New Jersey, and began producing rolled, waxed
 paper.  Within a few years the company had
 moved to Elmwood Park and was converting
 Jumbo rolls of tissue into finished products.  In
 1941, the plant started making its own tissue from
 virgin pulp. Then in 1947, in order to cut down
 on production costs and dependency on outside
 pulp suppliers, Marcalus built a plant that con-
 verted wastepaper to pulp.

    Since the construction of that  first recycling
 machine, the Marcalus family has kept the com-
 pany on the forefront of recycling by constantly
 refining and updating its equipment.  In 1978, the
 company vastly increased its efficiency by replac-
 ing old paper machines with new high-speed
 machines.  It is currently completing a three-year,
 $20 million expansion project, which was spurred
 by a $3 million low-interest loan from the New
 Jersey Department of Environmental Protection,
 and the sale of $13.3 million in tax-exempt bonds
 issued  by  the State of New Jersey.
                    Today, Marcal is a fully-integrated paper com-
                 pany that uses a variety of waste papers to  pro-
                 duce 100 percent recycled-content napkins, bath
                 tissues, facial tissues and paper towels for both
                 retail and commercial markets. Besides its main
                 plant in Elmwood Park, the company owns
                 smaller converting  plants in Augusta, Georgia;
                 Chicago, Illinois; and Springfield, Ohio.   The
                 Chicago plant makes waxed paper and bags for
                 the commercial sector, while the Georgia and Ohio
                 plants make place  mats  and  napkins, with an
                 emphasis on custom printing for the food-service
                 industry.  Not all  the products made at these
                 plants are manufactured from recycled paper.
                FEEDSTOCK
                    Marcal is one of the few domestic paper
                manufacturers capable of using low-grade, mixed
                waste paper.  The company's fleet of 50 tractors
                and 100 trailers bring in commingled magazines,
                catalogs, color inserts, junk mail, envelopes (with
                or without plastic windows), office  paper, non-
                metallic wrapping paper, books, school paper and
                telephone directories.  Most of the 600 supplier
58
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - PAPER -
  Table 47  Feedstock Information
material
mixed paper
pre-consumer printed material
total
consumption
(TRY)
104,000
56,000
160,000
recycled post-consumer
content content
100%
100%
100%
100%
0%
65%
price
paid/ton
$0
NA
NA
                                                                         Source: Institute for Local Self-Reliance. 1992.
communities are located in New Jersey, New York
and Pennsylvania. Marcal does not use newsprint,
old corrugated containers, kraft bags, plastic bags,
carbon paper or blue print.

   Marcal hauls loose or baled waste paper free
of charge from schools, offices, libraries, institu-
tions and community recycling programs. How-
ever, beyond a radius of approximately 250 miles,
suppliers share the transportation costs.  To bring
in more  paper, Marcal's  Municipal  Outreach Re-
cycling  Program sponsors  one-day recycling
events, school programs,  and  other public presen-
tations.   Recently Marcal teamed up with a jani-
torial and paper-products firm to provide busi-
nesses in New York and New Jersey with free
recycling bins.  Marcal also has a drop-off box at
its plant.

    Quality control at the community level is
rarely a problem. If unacceptable paper comes in,
it's either delivered to an appropriate recycler, or
landfilled.  If a community provides a large
quantity of unacceptable material or  contaminants,
Marcal returns the load  at the community's ex-
pense.

    Marcal uses  approximately 160,000 tons  of
waste paper per year in its production (Table 47).
Currently, post-consumer, mixed paper constitutes
approximately 65 percent of that  feedstock, al-
though this varies from day to  day. The balance
is pre-consumer scrap,  predominantly printing
plant overruns and errors.  The company intends
to shift to 100 percent post-consumer paper in the
near future, and  is confident it can maintain the
quality of its products.
PROCESS
    Marcal's trucks bring mixed paper from vari-
ous post-consumer  sources and unload  it on a
tipping floor.  Here, it is combined with pre-con-
sumer paper, and loaded onto a conveyer that
deposits the stock in one of several pulpers.  The
paper is mixed with hot water and detergents to
defiber it and start the deinking process.  The
resulting slurry has a fiber consistency of approxi-
mately 18 percent.

    Marcal has two deinking lines, each  consist-
ing of several pulpers and various types of clean-
ing, washing and  screening equipment.  The
company uses standard and company-enhanced
cleaning technologies, including floatation devices
and centrifugal-action cleaners, in combinations
that have been developed in-house through many
years of  experience.

    Some of Marcal's products are lightly bleached
to restore  whiteness.   For environmental and
economic reasons, the company stopped bleach-
ing with chlorine gas in 1991.  Marcal still uses
hypochlorite to bleach facial tissue, but is replac-
ing it with  more benign agents.

    Clean stock enters  one of three high-speed
paper machines, which  make tissue  at a rate of
6,000 feet per minute. The stock, which has a fiber
content of 0.3 percent, is sprayed onto a screen,
through  which the water is drained. A continu-
ous sheet of tissue exits the paper machine and
enters a Yankee Dryer, which uses steam heat to
reduce the moisture content to 4 to 6 percent. The
dry tissue is wound onto jumbo rolls and sent to
converting machines that slit, rewind, sheet, fold
and pack the finished products. Marcal's  bun-
dling system wraps multi-roll packages of tissue
Manufacturing from Recyclables:  24 Case Studies of Successful Enterprises
                                            59

-------
              -MARCAL PAPER MILLS, INC. •
            Table 48  Process Information
                        recycling level:
                   feedstock input rate:
                 production output rate:
            production design capacity:
              capacity utilization factor:
                  feedstock reject rate:
                     waste generated:

                    disposal methods:


                          equipment:


                         employment:
                  scheduled operation:
                     area requirement:
                           plant size:
                      warehouse size:
                   energy requirement:
                    water requirement:
tertiary
443 TPD
263 TPD
305 TPD
86%
41%
kaofin sludge

60% landfill, 20% shale-substitute
for cement manufacture,
20% composting
pulpers, screens, cleaners, refiners,
paper machine, Yankee Dryer,
converting machines

1,100 full time
361 days per year; 3 shifts per day
65 acres
1,250,000 square feet
included in plant size
NA
432,000,000 gallons per day
                     percent of this  waste is
                     now landfilled, 20 percent
                     is used as a shale-substitute
                     in cement manufacturing,
                     and 20 percent is dried and
                     composted to make  a soil
                     additive.  Marcal is con-
                     tinuing its efforts to  divert
                     by-products to beneficial
                     uses.

                        Marcal has 1,100 em-
                     ployees  (800 of whom are
                     union  workers) at its New
                     Jersey facility.  Table 48
                     provides a summary of
                     Marcal's operating process.
                                                  Sourca: Institute for Local Self-Rellanca, 1992.
         and towel in a plastic casing, saving 20 percent
         storage space compared to corrugated boxes.
         Marcal products are delivered to markets in the
         company's own trucks, which return with mixed
         waste paper.

             Marcal has a 25 year contract to buy power
         from a new, 65-megawatt co-generation plant,
         located at the Elmwood Park site.  The plant
         produces both steam and electricity from natural
         gas. Marcal's water comes from the Passaic River.
         Most of its  wastewater is treated and recycled
         within the mill, and the excess water is discharged
         into the Passaic Valley Sewer Authority system.
         The mill also  produces kaofin sludge.  Kaofin,
         which consists of rejects from the various clean-
         ing operations and wastewater treatment, is ap-
         proximately  50 percent clay  from coated papers,
         and 50 percent short, unusable fibers.  About 60
                    PRODUCTS
                        Marcal  is a  regional
                    paper company whose ag-
                    gressive marketing pro-
                    gram reaches from Maine
                    to Florida.  The company
                    produces over 200 brand-
                    coded versions of facial tis-
                    sue, napkin,  towel  and
                    bath tissue.  Generally,
                    bath tissue accounts for 45
                    percent of production, and
                    paper towel  for 35 percent.
                    The remainder  is  split
evenly between napkin and facial tissue (Table 49).
Marcal previously made feminine-hygiene prod-
ucts but for economic reasons ceased  their  pro-
duction a few years ago.  Marcal markets approxi-
mately half of its products under  its own name.
Commercial users consume an additional 40 per-
cent, and the remaining 10 percent are branded
with grocery-chain or wholesalers' names.

    Although product post-consumer content
varies with the availability of feedstock and the
type of product, all of Marcal's products meet the
U.S. EPA recommended guidelines for minimum
post-consumer content in recycled paper products.
These guidelines affect the use of federal funds
to purchase paper products.
.
         60
     Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      - PAPER •
  Table 49   Product Information
                   production
       products          rate
   manufactured        (TRY)
      bath tissue
      paper towel
          napkin
      facial tissue

            total
42,750
33,250
 9,500
 9,500

95,000
    total
recycled
 content

   100%
   100%
   100%
   100%

   100%
     post-
 consumer
content [a]

      40%
      20%
      30%
      20%

      65%
estimated
   annual
    sales

       NA
       NA
       NA
       NA

       NA
                                                      gross      value
                                                   revenue     added
                                                    per ton    per ton
NA
NA
NA
NA
NA
NA
NA
NA
NA   $700 [b]
  [a] The figures shown are a minimum, as content varies with feedstock availability. The mill as a whole uses approximately
    65 percent post-consumer feedstock.
  [b] Assuming average value of Marcal's tissue is $1,300 per ton and the average price for the pre-consumer feedstock is $250
    per ton. Both numbers are ILSR estimates based on information provided by other similar tissue mills.
                                                                        Source: Institute for Local Self-Reliance, 1992.
ECONOMICS
    Due to the competitive nature of the tissue in-
dustry, this family-owned business prefers to keep
proprietary all information regarding costs and
company finances (Table 50).  Marcal's total an-
nual gross revenue for all four of its plants is
approximately $200 million.
  Table 50  Economic Information
        initial capital cost:
              labor cost:
             energy cost:
          feedstock cost:
          total O&M cost:
          gross revenue:
     capital cost/capacity:
         O&M cost/sales:
     gross revenue/sales:
    NA

    $40,000,000 [a]

    NA

    $14,000,000 [b]

    NA

    NA

    NA

    NA

    NA
    [a] Assuming an average wage equivalent to the
      industry average, $12.60 per hour
    [b] Assuming the average price of pre-consumer
      feedstock is $250 per ton.
                                 State policies have benefited Marcal and con-
                             tributed to its success.  Beside recycled product
                             procurement policies across the nation stimulat-
                             ing demand,  the  state of New  Jersey loaned
                             Marcal $3 million for its current expansion project.
                   REPLICABILITY
                      Although  the configuration  of Marcal's
                   deinking process is proprietary, the technology is
                   available in the marketplace.   The market  for
                   tissue products is relatively stable.  However,
                   because the industry is dominated by a few major
                   producers, competition is fierce and barriers to
                   entry are high.  A small plant in a good location
                   would find a ready supply of feedstock because,
                   at present,  very few mills are equipped to use
                   commingled, mixed paper.  Furthermore,  the
                   number  of  recycling programs collecting mixed
                   paper is increasing,  keeping the price low.
                   CONTACTS
                   Peter Marcalus, Vice President,
                   Sales and  Consumer Division
                   Marcal Paper Mills, Inc.
                   1 Market Street
                   Elmwood  Park, New Jersey 07407
                   201-796-4000
                   201-796-0470 fax
                     Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies pf Successful Enterprises
                                                                                               61

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 OHIO  PULP  MILLS,  INC,
                      Location:
                 Start-up Date:
         Recycled Material Used:
                     Products:
     Production Design Capacity:
Cincinnati, Ohio
1965
poly-coated paper
market pulp
50TPD
 COMPANY  BACKGROUND
    Ohio Pulp Mills, Inc. began operation in 1965
 as Amberley Corporation, with the intention of re-
 cycling plastic-coated paper packaging waste.  The
 original plan was to recover the plastic and dis-
 card the paper fiber, but recovering the fiber soon
 proved more profitable.

    Robert Mendelson, owner of Donco Paper
 Supply Company,  a Chicago  paper brokerage
 firm, bought the Ohio Pulp plant in 1970. At the
 time, the mill was using many waste-paper grades
 to produce 10 tons  per day of pulp. The result-
 ing pulp was low grade and lacked consistency.

    After assuming the reins of the mill,
 Mendelson installed new equipment and experi-
 mented with different feedstock.  In 1971, the mill
 started using scrap from diaper manufacturers,
 such as Procter & Gamble and Kimberly-Clark.
 This scrap proved to be an excellent resource and
 became the mill's primary raw material.  But the
 practice had to be abandoned in 1978 when the
 diaper manufacturers began adding super-absor-
 bent chemicals to their diapers.

    Today, this small pulp mill in the suburbs of
 Cincinnati uses poly-coated packaging waste to
produce high-quality pulp. Recent modifications
 to its screening process allow it to use post-con-
sumer milk cartons, making it one of the few mills
                 in the country with this capability.  In 1988, the
                 company initiated a pilot program to recycle milk
                 and juice cartons  from the Cincinnati public
                 schools.
                 FEEDSTOCK
                    Ohio Pulp's sole feedstock is various forms of
                 poly-coated paper:  cup stock, food board, milk
                 cartons and kraft bags with plastic liners (cement
                 bags, for example).  Most of these materials come
                 from major packaging manufacturers,  including
                 International Paper and Georgia-Pacific.

                    The mill incorporates up to 50 percent post-
                 consumer stock, depending on customer specifi-
                 cations.  On  average, about 18 percent of the
                 feedstock consists of used milk and juice cartons.
                 This number is steadily increasing due to demand
                 for pulp with high post-consumer content.  Most
                 of the milk and juice cartons come from curbside
                 collection programs, retirement homes and about
                 60 schools in the Cincinnati area, but some arrive
                 from as  far away as Canada.  Ohio  Pulp has
                 recently  started collecting milk cartons from
                 schools in Buffalo and Rochester, New York.

                    Poly  Recyclers, another company owned by
                 Mendelson, collects and processes the  post-con-
                 sumer milk and juice cartons  coming  from the
                                 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

-------
                                                                                      - PAPER-
  Table 51   Feedstock Information
                                      consumption    recycled
                            material         (TPY)     content
  pre-consumer poly-coated paperboard        10,000
                 milk and juice cartons         2,200
                     100%
                     100%
    post-consumer
           content

               0%
             100%
   price
paid/ton

    $85
   $275
                                total        12,200       100%            18% [a]        $119

  [a] This is an average figure. Actual post-consumer content varies from 0 to 50 percent, depending on customer specifications.
                                                                         Source: Institute for Local Self-Reliance, 1992.
Cincinnati area.  Used milk and juice cartons are
collected and processed frequently because re-
sidual milk sours and residual juice develops
mold.  As a result, collection and processing costs
for the post-consumer cartons are high:  approxi-
mately $200 per ton for the  Cincinnati area pilot
program and about $300 per
ton for the cartons arriving
from further away (Table 51).
If the cartons  were  to be
separated and collected by
waste haulers as part  of the
normal waste collection rou-
tine, the price of the feedstock
could  be  lower.
                 gable-topped milk or juice cartons and pitch them
                 into plastic bags placed in the cafeterias. Poly Re-
                 cycles collects these cartons several times a week
                 and takes them to its plant, located next to Ohio
                 Pulp, where they are ground, washed and baled.
                 Most of the raw materials coming from further
 PROCESS
    Depolying technology to
 remove plastic coating from
 paper is not a new concept.
 A handful of companies, in-
 cluding Ohio Pulp, have been
 doing it for almost 30 years.
 While these mills depend pri-
 marily on packaging manu-
 facturers  for their feedstock,
 Ohio Pulp distinguishes itself
 by using  a significant per-
 centage  of post-consumer
 milk cartons.

    Every lunch  period, kin-
 dergarten through eighth
 grade students in the Cincin-
 nati  area empty out their
 Table 52  Process Information
           recycling level:
      feedstock input rate:
    production output rate:
production design capacity:
  capacity utilization factor:
      feedstock reject rate:
         waste generated:
        disposal methods:


               equipment:
             employment:
      scheduled operation:
         area requirement:
               plant size:
          warehouse size:
primary
36 TPD
30 TPD
50 TPD
60%
17%
polyethylene
sold to plastic-lumber manufacturers
 and landfilled
pulper, screens
30 full time; 15 skilled
340 days per year; 3 shifts per day
3 acres
20,000 square feet
10,000 square feet
       energy requirement:   2,300,000 kWh per year of electricity
        water requirement:   14,580 gallons per day
                                                                         Source: Institute for Local Self-Reliance, 1992.
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                            63

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     -Omo PULP MILLS, INC. •
   Table 53  Product Information
production total
products rate recycled
manufactured (TRY) content
market pulp 10,200 100%
post- estimated gross value
consumer annual revenue added
content sales per ton per ton
18% [a] $4,600,000 [b] $450 [b] $260
[c]
[a] This is an average figure. Actual post-consumer content varies from 0 to 50 percent, depending on customer specifications.
[b] Assuming the average value of the pulp produced is $450 per ton.
fc] Assuming the average feedstock price is $119 per ton.
                                                                        Source: Institute for Local Sell-Reliance, 1992.
 away are ground, washed and baled before they
 arrive at the plant. The processed scrap is taken
 across the plant to Ohio Pulp Mills.

    At Ohio Pulp, the ground feedstock is fed into
 a hydrapulper, which agitates the material with
 water.  Most of the polyethylene floats to the top
 where it is skimmed off and baled.  The slurry
 passes through several screens to remove the re-
 maining plastic bits.  Virtually all the inks used
 on the cartons are washed off with the polyeth-
 ylene.  The clean pulp is thickened to about 50
 percent moisture, and formed into 1,300 pound
 bales for sale to paper mills.  Ohio Pulp does not
 have deinking equipment, and uses no chemicals
 or bleaching agents.

    The polyethylene coating amounts to less than
 20 percent of the incoming feedstock.  Ohio Pulp
 sells  about 25 percent of the recovered poly to
 plastic-lumber manufacturers, and landfills the
 rest due to lack of markets.  Water used by the
 mill is filtered and recirculated.  Details of the
 operation at Ohio Pulp are summarized in Table
 52.
 PRODUCTS

    Ohio Pulp produces two types of pulp. White
 pulp, which accounts for approximately 95 per-
 cent of production, retains strong, bright fibers,
 and commands a high price in the market. Paper
 mills use it to make printing-and-writing paper,
 and high quality tissue.  Although the mill has
 the ability  to make pulp from 100 percent post-
                 consumer scrap, it cautions that the resulting pulp
                 is of slightly lower quality and higher price.  Be-
                 cause of the high collection and processing cost
                 of post-consumer milk cartons, Ohio Pulp charges
                 a premium for pulp with high post-consumer
                 content.  The mill's pulp contains  up to 50 per-
                 cent post-consumer fibers depending on customer
                 specifications.

                    The remaining 5 percent of production is
                 brown pulp, made from poly-coated kraft paper,
                 is also  of high quality, and is used to  make
                 linerboard and some specialty products.  Table 53
                 summarizes  relevant information about  the mar-
                 ket pulp manufactured by Ohio Pulp.
                ECONOMICS
                    Ohio Pulp prefers to hold confidential all in-
                formation regarding cost of operation.  Approxi-
                mate operating costs, and the cost of energy, labor
                and feedstock, based on ILSR calculations, are
                shown in Table 54.  The cost for feedstock is the
                most significant  portion of the operation and
                maintenance cost, at about 40  percent. Recent
                modifications to the plant,  which included  new
                screens and a water treatment system, cost the
                company $500,000. The company pegs its annual
                sales at over $4.5 million.
                REPLICABILITY
                    The market for pulp made from poly-coated
                paper is expanding for two reasons: more schools
64
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

-------
                                                                                        -PAPER-
  Table 54  Economic Information
    initial capital cost:
           labor cost:
         energy cost:
      feedstock cost:
      total O&M cost:
      gross revenue:
 capital cost/capacity:


      O&M cost/sales:
 gross revenue/sales:
$7,000,000 to $15,000,000 [a]
$786,000 per year [b]
$113,000 per year [c]
$1,500,000 per year [d]
$3,750,000 per year [e]
$4,600,000 per year
$140,000 to $300,000
per TPD capacity [a]
$370 per ton so Id [b]
$450 per ton sold
  [a] Estimate for a similar-size mill built today, provided by
    Ohio Pulp Mills, Inc.
  [b] Assuming an average wage equivalent to the industry
    average, $12.60 per hour.
  [c] Assuming energy cost is 3 percent of O&M cost.
  [d] Assuming average feedstock cost of $119 per ton.
  [e] Assuming feedstock cost is 40 percent of O&M cost.
                            Source: Institute for Local Salf-Relianca, 1992.
and recycling programs are collecting milk
cartons, and the resulting pulp is of high
quality. Ohio Pulp is very interested in ex-
panding to new locations if a market can
be found for its products.  Any new mill
will be completely financed by Donco Pa-
per.   The supply of pre-consumer scrap
will be limited in areas where no manu-
facturer  of poly-coated packaging exists.
But if milk carton collection programs con-
tinue to grow, and collection and process-
ing costs can be decreased, post-consumer
feedstock will be plentiful.  According to
Donco Paper, if the national milk and juice
carton recovery rate reaches 35 percent,
there will be enough fiber to manufacture
175,000 tons per year of pulp. The machin-
ery involved in the pulp-making process is
readily available.
                                    CONTACTS
                                    Robert Mendelson, President
                                    Donco Paper Supply Company
                                    737 North Michigan  Avenue
                                    Chicago, Illinois  60611
                                    312-337-7822
                                    312-373-7891 fax
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                          65

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PAPER  SERVICE  LIMITED
                     Location:

                Start-up Date:

        Recycled Material Used:

                     Products:
Ashuelot, New Hampshire

1883

mixed paper

packaging tissue
toilet tissue
napkin
    Production Design Capacity:    30 TPD
 COMPANY BACKGROUND
    For over 100 years, Paper Service Limited has
 been producing recycled paper in a small plant
 in the village of Ashuelot, New Hampshire. The
 mill has been run by the  O'Neal family since
 Clarence O'Neal took over operations in 1908.
 Then, the plant used waste cotton, silk, linen, and
 flax to produce silk tissue paper for packaging and
 writing.  Eventually the plant switched to Scan-
 dinavian pulp, then in  1940, switched to  waste
 paper, and has been manufacturing tissue from
 waste paper ever  since.

    Today  Clarence O'Neal's grandson, Gary
 O'Neal, operates the mill. However, little besides
 the management has changed. Paper Service still
 makes its papers  the old-fashioned way,  using
 neither bleaching nor chemical deinking. The only
 leading edge technology in  the mill is its  pollu-
 tion-control equipment, notably a natural waste-
 water treatment system that discharges  clean
 water into  the adjacent  Ashuelot River.

    Paper Service makes all of its products from
 100 percent post-consumer  waste paper, mostly
 mixed low grades.  Because of its environmentally
                 friendly manufacturing process, Paper Service was
                 the first company authorized by New York State
                 to use the "New Generation" recycling emblem in
                 its products.  The company is also the recipient
                 of the first Ecologue Award for an Earth Conscious
                 Company, presented by lEG/International Environ-
                 mental Group, publishers  of Ecologue, The
                 Consumer's Guide to Environmentally Safe Products.
                 To spread the word on recycling, the mill wel-
                 comes tours from schools and community groups.
                 Last year  nearly 1,000 school children visited the
                 plant and its wastewater treatment facility.
                 FEEDSTOCK
                    Paper Service is one of only two tissue mills
                 whose  entire product line is made from 100
                 percent post-consumer waste paper.  The plant
                 accepts newspapers, glossy inserts, office paper,
                 copy and fax paper, computer printout, unbound
                 books and magazines, some junk mail, and kraft
                 grocery bags.  The  mill does not use carbon and
                 plastic-coated paper, envelopes with plastic win-
66
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                                                                                     - PAPER
  Table 55   Feedstock Information
consumption recycled post-consumer
material (TPY) content content
magazines
other mixed paper
computer paper
newspaper
total
1,170
1,170
780
780
3,900
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
price
paid/ton
$0-50
$0-50
$300
$0-50
$80
dows, corrugated containers, books or magazines
with glued bindings, waxed or metallic-embossed
papers, or wet-strength paper.
    The company has little trouble  getting feed-
stock, which it receives from a variety of sources
— municipalities, brokers, volunteers and landfills.
About  60 percent of
the feedstock comes
from a  Massachu-
setts  broker,  who
collects waste paper
from the Boston area.
                                                     PROCESS
                                                        All paper that is
                                                     trucked to the plant
                                                     or left in the plant's
                                                     drop-off  box  is
                                                     hand  sorted to re-
                                                     move excessive con-
                                                     tamination.   The
                                                     mixed paper is then
                                                     fed     into     a
                                                     hydrapulper, where
                                                     it  is  mixed with
                                                     water and agitated.
                                                     The mill has three
                          hydrapulpers, but only one is currently in opera-
                          tion.  Paper Service uses no chemicals or deter-
                          gents to clean the pulp, but uses polymers to float
                          some of the contaminants.  Following the pulping
                          operation, the stock passes through a centrifugal
                          cleaner and  vibrating screens to remove further
                                                Source: Institute for Local Self-Reliance, 1992.
 Table 56  Process Information
The rest comes from
other parts of New
England.

   While  a   few
municipalities pay
the mill as much as
$30 per ton to  take
their paper,  Paper
Services  pays  other
sources up to $300
per ton  for certain
grades of paper. On
average,  the  com-
pany pays approxi-
mately $80 per ton
for feedstock  (Table
55).  Because the mill
does no  bleaching,
high grade post-con-
sumer paper is re-
quired for some of
its brighter products
— computer  paper
makes up 20 percent
of the feedstock.
           recycling level:
      feedstock input rate:
    production output rate:
production design capacity:
  capacity utilization factor:
      feedstock reject rate:
         waste generated:
        disposal methods:
              equipment:
             employment:
      scheduled operation:
         area requirement:
               plant size:
          warehouse size:
       energy requirement:
        water requirement:
tertiary
13TPD
10TPD
30TPD
33%
23%
sludge
landfill on site for later use as fill material
hydrapulper, centrifugal cleaners, vibrating
screen, refiner, paper machine, dryer, con-
verting machines, wastewater clarifier, lagoons

35 full time, 5 part time; 6 skilled, 34 unskilled
300 days per year; 3 shifts per day
50 acres
200,000 square feet
100,000 square feet
200,000 gallons per year of No. 6 fuel oil
110,000 gallons per day
                                                                         Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                     67

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     -PAPER SERVICE LIMITED
   Table 57   Product Information [a]
production
products rate
manufactured (TPY)
packaging paper
napkin
bath tissue
total
2,950
30
20
3,000
total post- estimated
recycled consumer annual
content content sales
100%
100%
100%
100%
[a] Assuming production rate is one-third of capacity.
[bj Assuming an average feedstock price of $80 and an annual
100%
100%
100%
100% $3,000
sales of $3 million.
NA
NA
NA
,000

gross
revenue
per ton
NA
NA
NA
$1,000

value
added
per ton
NA
NA
NA
$690 [b]

                                                                        Source: Institute for Local Sell-Reliance, 1992.
 contaminants. The slurry is then introduced into
 a refiner to separate the fibers.

    The clean stock enters the paper machine,
 which produces rolls of tissue.  These are then
 converted into finished products.  The company
 owns three paper  machines but, again, only one
 is currently used.

    Paper Service taps the adjacent Ashuelot River
 for all of its water  needs. About 20 years ago the
 company invested $3.5 million in a wastewater
 treatment system to minimize the  mill's environ-
 mental impact.  A small amount of phosphoric
 acid is first added to the wastewater to neutral-
 ize the pH.  The water then flows  into a clarifier,
 where heavy particles  settle.  Water then  enters
 a series of oxygenated lagoons,  where aquatic
 plants and organisms use natural,  biological pro-
 cesses to remove contaminants from the water.
 Additional contaminants sink to the bottom of the
 lagoons.  The lagoons are  also home to several
 types of fish, ducks, otters and  other wildlife.
 Water from the lagoons is reused in the mill, and
 the excess  goes back  into the Ashuelot River,
 cleaner than it was when it left. Paper Service's
 boiler burned wood chips in the past, but for
 economic reasons,  now uses Number 6 fuel oil.

    The sludge generated by the plant, which con-
 sists mostly of clay  with some wood  fibers, is
 landfilled near the lagoons and later used as filler
 material.  The company has  installed several wells
 to monitor ground water in the area. According
 to company sources, water contamination has
 never been a problem.
                    Paper Service currently has 35 full-time and
                five part-time employees. When operating at full
                capacity, the mill employs 110 full-time and 20
                part-time workers.   The average wage for the
                workers  is $8.50 per hour.

                    Information about the process used by Paper
                Service is summarized in Table 56.
                PRODUCTS
                    Paper Service manufactures 100 percent post-
                consumer tissue products. Although the company
                is equipped to make packaging tissue, bath tissue
                and napkin, at present napkin and bath tissue pro-
                duction is very low due to low demand in a slow
                econmy.  Almost 99 percent of its current prod-
                ucts is wrapping and packaging tissue (Table 57).
                The mill makes eight types of these, in roll and
                sheet  form, and in several colors.

                    Paper Service sells exclusively to commercial
                users throughout the U,S.   The company  also
                exports some of its products to Costa Rica,
                Canada, Norway and other countries.
                ECONOMICS
                    Because the plant was built over 100 years
                ago, the initial capital cost is not applicable today.
                The company estimates that nowadays the initial
68
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                       -PAPER-
capital cost for a similar mill would be between
$30 million and $50 million.  Aside from the
wastewater treatment system, no major modifica-
tions have been made to the plant in recent years.

    Although Paper Service has been a profitable
business for over 100 years, the recent recession
has slowed sales. The company has laid-off over
half its work force, and at one point the produc-
tion rate had dropped to 20 percent of capacity.
The company attributes  this to a  depressed
economy,  loss of some major  contracts, the
public's fascination with white and bright prod-
ucts, and an influx of products bearing a "re-
cycled" claim.

    The annual operating cost for the plant at full
capacity is approximately $3.5  million.  At one-
third capacity,  it is about $1.7 million.  Even at
this modest sum, the plant is not  earning a profit
because  of all  the unused capacity.  However,
because the plant is relatively small, it only takes
a few major contracts to restore profitability. To
Paper Service's benefit, Sears Roebuck and Com-
pany recently  sent a letter to all its suppliers,
encouraging them to use Paper Service's packag-
ing tissue.

    High local energy costs and a labor-intensive
process make Paper  Service's  products slightly
   Table 58  Economic Information [aj
       initial capital cost:
              labor cost:
            energy cost:
         feedstock cost:
         total O&M cost:
         gross revenue:
    capital cost/capacity:


        O&M cost/sales:
    gross revenue/sales:
$30,000,000 to $50,000,000 [b]
$500,000 per year
$500,000 per year
$312,000 per year
$1,700,000 per year
$3,000,000 per year
$1,000,000 to $1,700,000
 per TPD capacity

$570 per ton sold
$1,000 per ton sold
                          more expensive than those produced by larger,
                          virgin-stock mills.  At $0.37 per 1000-sheet roll,
                          bath tissue costs about 15 percent more than a
                          comparable virgin product. Paper Service's pack-
                          aging paper costs approximately $0.45 per pound,
                          which is comparable to other mills' paper, but
                          generally slightly higher than polystyrene packag-
                          ing. According to management, prices for all the
                          products could decrease by 10 percent if the plant
                          were at full capacity.

                              Energy and labor account for approximately
                          60 percent of the operation and maintenance cost,
                          while feedstock cost is the next significant portion,
                          at 20 percent (Table 58).
                           REPLICABILITY
                              The technology used by Paper Service is fully
                           replicable. The initial and operating costs are also
                           fairly low.  However, because of the dominance
                           of a few big companies in the tissue industry,
                           stable markets for the products (local  govern-
                           ments, institutional and commercial users)  are
                           necessary to ensure profitability.  As for feedstock,
                           very few mills compete for mixed  paper, and a
                           medium-size city with a population of 300,000
                           could  provide all the waste paper required by a
                                     mill of this  scale.
    The wastewater treatment system
at Paper Service requires more land
than conventional systems, because of
the lagoons.  However,  the  system
results in low water requirements and
especially clean  effluent.
   [a] Assuming production rate is one-third of capacity.
   [b] Estimate for a new mill of similar capacity provided by the
      management of Paper Service Limited.
CONTACTS
Gary O'Neal, CEO
Paper Service Limited
P.O. Box 45
Hinsdale, New Hampshire
603-239-6344
603-239-8861 fox
03451
                               Source: Institute for Local Self-Reliance. 1992.
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                      69

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 SOMERSET FIBER/RECYCLING
 SYSTEMS  CORPORATION
                    Location:
                Start-up Date:
        Recycled Material Used:
                    Products:



     Production Design Capacity:
Cowpens, South Carolina
1992
old corrugated containers
linerboard
corrugated medium
bag paper
280 TPD
 COMPANY  BACKGROUND
    In 1990, a small group of paper-industry vet-
 erans founded Recycling Systems Corporation
 (RSC) with  the intent of building mini-mills for
 making 100 percent post-consumer paper. These
 mills are designed to have a low capital cost, and
 to produce  paper that is cost- and quality-com-
 petitive with virgin mills. RSC's current focus is
 on mills that use OCC to make light-weight kraft
 grades. The  initial result of this venture is
 Somerset Fiber, a plant owned by the international
 packaging company, LinPac Group.

    RSC is a developer/contractor for minimills
 that have about one-fourth the production capac-
 ity of a regular linerboard mill. The company will
 assist prospective owners in every phase of the
 project, from site selection to initial mill operation.
 Once the owner secures approval and funding for
 a pro|ect> RSC will supervise design and construc-
 tion, provide the operating management, and even
 market the output.

    The LinPac Group, one of the world's largest
 packaging manufacturers, was founded 32 years
               ago in the United Kingdom. With headquarters
               in Lincolnshire, U.K., the company has plants all
               over Europe and the U.S., making a variety of
               paper, plastic, molded-pulp and metal packages.
               In the U.S., Linpac owns four  corrugated-sheet-
               board plants besides Somerset.  These are located
               in Greensboro, North Carolina; Atlanta, Georgia;
               Dallas, Texas; and Los Angeles, California.

                  The design and construction of Somerset was
               completed in 18 months.  Although the plant is
               now managed by LinPac, representatives from
               RSC remain on-site as consultants, concentrating
               on marketing, waste paper supply, solid waste
               disposal, and business management.
               FEEDSTOCK
                  Somerset's only feedstock is OCC (Table 59).
               Brokers collect this from within a 150-mile radius
               of the plant, and deliver it by truck or rail. About
               70 percent of the OCC comes from grocery stores,
               20 percent from textile mills and other industrial
70
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     -PAPER
  Table 59  Feedstock Information
             material
  OCC (Grade #1 PSIA)
consumption
       CTPY)
recycled
 content
post-consumer
      content
   price
paid/ton
      98,000     100%
                  100%    $40-50
                                           Source: Institute for Local Self-Reliance, 1992.
sources, and 10 percent from local landfills, where
it is salvaged  from commercial loads.

    RSC does not anticipate a feedstock shortage,
because there are no other nearby mills that use
OCC, nor is all the OCC being recovered from the
waste stream.  RSC is working with local govern-
ments that own landfills to separate OCC  from
commercial waste before disposal.
                        proceeds to a cleaning
                        device called the Liq-
                        uid Cyclone™, which
                        uses centrifugal action
                        to  remove smaller,
                        high-density contami-
                        nants.
                            The accepted stock
                        is then stored before it
                        is passed through a
                        series  of  approxi-
mately 20 different cleaning steps, including Black
Clawson's  Ultra-V™  vertical-pressure screens,
Ultra-Clone™ forward cleaner and X-Clone™
through-flow centrifugal cleaners. The clean stock
is thickened to 4 or 5 percent solids, then refiners
grind it  into individual fibers.  Ready for the
paper machine,  stock is stored in  the machine
tank.
PROCESS
    Baled OCC arriving by
truck or rail is weighed and
dumped on a tipping floor.
Workers break the bales and
load  the  feedstock onto a
conveyer that carries it to a
hydrapulper   (a    Black
Clawson  pulper  similar to
those used in many recov-
ered-fiber mills).  The  load-
ing rate is constantly moni-
tored by an operator using a
computer-controlled system.

    The hydrapulper  agi-
tates the OCC with water to
defiber the feedstock and
produce  a  slurry.   The
pulper also removes some
heavy contaminants such as
bale wire and plastic, that
account for about 3 to 5
percent of the input.  A
"debris  rope"   removes
strings, wires and rags.
Other  rejects  from  the
hydrapulper are diverted
into a trash  well.   The re-
mainder of the slurry, which
is about  3 percent solids,
               Table 60 Process Information
                        recycling level:
                    feedstock input rate:
                 production output rate:
               production design capacity:
               capacity utilization factor:
                   feedstock reject rate:
                      waste generated:
                     disposal methods:
                           equipment:


                          employment:
                   scheduled operation:
                      area requirement:
                            plant size:
                       warehouse size:
                    energy requirement:


                     water requirement:
                           primary
                           275 TPD
                           250 TPD
                           280 TPD
                           89%
                           9%
                           sludge, plastic, bale wire
                           landfill
                           pulper, screens, cleaners,
                           refiner, paper machine, dryer

                           61 full time; 16 skilled, 45 unskilled
                           355 days per year; 2 shifts per day
                           12 acres
                           100,000 square feet
                           included in plant size
                           50,000,000 kWh per year of electricity,
                           300,000 MCF per year of gas

                           250,000 gallons per day
                                                                        Source: Institute for Local Self-Rellance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                          71

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              -SOMERSET FIBER/RECYCLING SYSTEMS CORPORATION
            Table 61   Product Information
production total post- estimated gross value
products rate recycled consumer annual revenue added
manufactured (TRY) content content sales per ton per ton
linerboard NA[a] 100% 100% NA
bag paper NA[a] 100% 100% NA
total 88,750 100% 100% $25,000,000
[a] Production rate for individual products vary with consumer demand.
[b] Assuming average feedstock price is $45 per ton, and average value of product is $330 per ton.
[c] Assuming average feedstock price is $45 per ton, and average value of product is $375 per ton.
[d] Assuming average feedstock price is $45 per ton, and average value of products is $350 per ton.
NA $260 [b]
NA $300 [C]
$280 $270 [d]

                                                                                  Source: Institute for Local Sell-Reliance, 1992.
              Stock enters the paper machine through a
          head box, which pressurizes the flow and spreads
          it onto 180-inch-wide forming wires.  The wires,
          which travel at approximately 875 feet per minute,
          form a  two-ply sheet.   This continuous sheet
          enters two presses that reduce the moisture con-
          tent from 60 to 50 percent The paper is further
          dried by a series of 25  steam-heated rollers.   It
          is wound on 23-ton rolls, which are then re-rolled
          on 2- to 3-ton rolls. Samples from every roll are
          tested  for a variety  of properties, including
          strength, porosity, smoothness, and basis weight.
          The finished product is  transported to container
          plants by truck or rail.

              The plant has a natural-gas boiler to produce
          steam, and a primary wastewater treatment facil-
          ity, consisting of a screen and a clarifier.  About
          80 percent of the effluent is reused, and the rest
          enters the municipal  sewer system.  Sludge is
          dewatered with a  filter  press, and is landfilled.
          Table 60 summarizes  Somerset's  manufacturing
          process.
          PRODUCTS
              Although Somerset is equipped  to produce
          lightweight linerboard, corrugated medium and
          bag paper, the plant ran only corrugating medium
          for its first four months. The mill is now switch-
          ing to other grades, a relatively simple transition
          that requires only different chemical additives.  In
                 1993, Somerset will produce linerboard and bag
                 paper. Table 61 provides details about Somerset's
                 products.

                    The company expects the  demand for light-
                 weight corrugated containers to increase because
                 of recent changes in Rule 41 of the American
                 Trucking Association, which governs the corru-
                 gated box industry. This rule, which specifies the
                 weight required  to meet the bursting-strength
                 requirement, was revised in 1991 to allow the use
                 of lighter weight paper.

                    Somerset  sells its  corrugated medium  and
                 linerboard to  corrugated-box plants nationwide.
                 Some  of its products are sold to LinPac's  box
                 plants.
                 ECONOMICS
                    RSC claims that a mini-mill (250 tons per day)
                 can be built for approximately $160,000 per daily
                 ton of capacity, on a good site.  This is well below
                 the paper-industry  norm of $300,000 to $500,000
                 per daily ton of capacity.   Feedstock availability
                 and utility costs heavily influence operating costs.
                 Somerset's estimated annual sales are $25 million.

                    Approximate operating costs, based on ILSR
                 calculations, are shown in Table 62.  The cost of
                 feedstock is  the main  operation  and main-
                 tenance cost, at approximately 30 percent.  Be-
                 cause OCC is delivered to the plant by brokers,
_
         72
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      -PAPER-
there is no transportation
cost involved. Design inno-
vations that minimize water
and energy costs add to
Somerset's competitive edge.
REPLICABILITY
    Although the mini-mill
concept is new to the U.S.
paperboard  industry, the
technology has been success-
fully used in Europe and is
replicable. Over 80 percent
of the mill's  equipment is
conventional — it is the
mill's  creative use of this
equipment that makes it
state-of-the-art.
Table 62   Economic Information
    initial capital cost:
        energy cost:
          labor cost:
      feedstock cost:
      total O&M cost:
      gross revenue:
 capital cost/capacity:
     O&M cost/sales:
 gross revenue/sales:
$40,000,000 to $50,000,000
$3,000,000 per year [a]
$1,600,000 per year [b]
$4,400,000 per year [c]
$15,000,000 per year [d]
$25,000,000 per year
$140,000 to $180,000 per TPD capacity
$170 per ton sold
$280 per ton sold
[a] Assuming energy cost is 20 percent of O&M cost.
[b] Assuming an average wage equivalent to industry average, $12.60 per hour.
[c] Assuming feedstock cost is $45 per ton.
[d] Assuming feedstock is 30 percent of O&M cost.
    RSC  plans  to  build
many more mini-mills simi-
lar to the Cowpens facility.
The company is currently siting a 375 ton per day,
$80 million  linerboard mill in Prewitt,  New
Mexico.  The mill, which will be named McKinley
Paper Company, is scheduled to start operation
by early 1994.  RSC also plans to apply the  mini-
mill concept to folding-boxboard and newsprint
production.
                                   Source: Institute for Local Self-Reliance, 1992.
               CONTACTS
               Tim Campbell,  President
               Recycling Systems Corporation
               1115 Church Street
               Covington, Georgia  30209
               404-787-8620
               404-787-8623 fax
Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises
                                                         73

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COON MANUFACTURING
                     Location:
                 Start-up Date:
         Recycled Material Used:

                     Products:

     Production Design Capacity:
Spickard, Missouri
1974 (started accepting scrap in 1987)
natural color high density polyethylene

plastic sheet and related products
rotational molded plastic products
14TPD
COMPANY BACKGROUND
    In 1985, following a fifteen year history of
manufacturing propane delivery units, farm ma-
chinery, and various plastic products, entrepre-
neur Bill Coon began research and development
on a process to manufacture recycled-plastic sheet-
ing for use in building applications.  In 1987, Coon
Manufacturing began production  of the sheets
using unprocessed post-consumer plastic as a
feedstock.

    In 1991, Coon built a prototype wash system
on  the theory that its manufacturing  process
would operate more cheaply and efficiently if the
post-consumer plastic scrap was free of paper and
clean.  Furthermore, since  clean post-consumer
plastic flakes were in high demand among other
manufacturers, Coon  would be able to sell for
additonal profit any surplus materials not needed
in its operations. The performance of the proto-
type wash system exceeded expectations, and the
company began operating a full-scale production
system, which began operating in  January 1992.
The company currently produces dies and plas-
tic-processing equipment, manufactures plastic
sheet from post-consumer scrap, and makes rota-
tional-molded products  from industrial scrap.
                FEEDSTOCK
                    Coon Manufacturing purchases bales of post-
                consumer natural HDPE bottles (milk and water
                jugs) from municipal residential recycling pro-
                grams (Table 63). The plastic is trucked to Coon
                from distances of up to 500 miles, primarily from
                communities in Missouri, Iowa,  Illinois, Tennes-
                see, and Minnesota.

                    The company also uses natural-colored indus-
                trial scrap HDPE to manufacture its rotational-
                molded products.  Currently, this rejected mate-
                rial is purchased in gaylords from another rota-
                tional molding operation.  Because it is already
                clean and ground, Coon buys it  for nearly three
                times what it pays for post-consumer bottles.
                PROCESS
                    As bales of post-consumer HDPE arrive at the
                plant, they are mechanically broken and loaded
                onto a conveyor, and contaminants such as glass,
                aluminum, and steel are manually removed. Coon
                Manufacturing then grinds the plastic into flakes,
                washes and dries them, then stores the flakes for
                later use or for sale to other manufacturers.
74
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                    -PLASTJC-
  Table 63  Feedstock information
                            consumption  recycled  post-consumer    price
                     material     (TPY)    content         content  paid/ton
       natural HOPE milk bottles      960     100%
  ground natural HOPE (industrial)      104     100%

                        total     1,064     100%
      100%
        0%
$160
$440
       90%    $187
                                                 Source: Institute for Local Self-Rellance, 1992.
    Currently, the Coon wash system operates at
half capacity due to a shortage of drying capacity
(Table 64).  The wash system requires four work-
ers per shift, and needs 2,500 square feet of space,
plus 7,500 square feet  for material storage.

    On the sheet-extrusion line, an extruder melts
the clean, dry post-consumer flakes with an added
coloring agent. This thick liquid is forced between
two rollers that press  it into sheet form.  This
system requires 3,000  square feet of space for
machinery and feedstock.  Inventory requires an
additional  8,000 square feet, half of  which is
currently outside.  The sheet-extrusion system
requires one worker and one supervisor per shift,
and must run three shifts per day, five days per
week to be  cost effective.

    The rotational-molding system starts with the
melting of finely-ground, industrial scrap HDPE.
The molder rotates so that the molten plastic coats
the inside of the mold.  The result is  a hollow
product such as a trash can or dog house. This
system requires two workers and one supervisor
per shift, and must run three shifts per day to be
cost effective.  It requires 5,000 square feet under
roof for the equipment, with an additional 5,000
to 10,000 square feet of outdoor storage. The
company could run post-consumer plastic through
its rotational molding system if it had equipment
to grind the post-consumer flake into a powder.
PRODUCTS
    The   primary   products   from   Coon
Manufacturing's sheet extruder line are 4' x 8' and
4' x 10' sheets of plastic  (Table 65).  The sheets,
which range in thickness from  0.025 to 0.625
inches, are used as a substitute for wood in pallets
and a variety of building applications, such as
wall, floor and roof
covering.

    The  company
also extrudes plastic
profiles in the sizes
1" x 2" and 2" x 4,"
with      varying
lengths.  Coon also
fabricates these pro-
files into a variety of
products, including
furniture.
    With its rotational molding equipment, Coon
has the capacity to produce over 30 products, in-
cluding gas tanks, water reservoirs, animal feed-
ers, dog  houses, buckets, helicopter seats, pans,
18-gallon curbside containers, and 2-cubic yard
dumpsters.

    Lumber, concrete, and steel companies are the
direct competitors of  plastic manufacturers like
Coon.  Coon's products enjoy many advantages
over their  wooden competitors: a resistance to
moisture-related problems such as rotting and oxi-
dation, as well  as reduced maintenance require-
ments.   Coon  Manufacturing holds  that  the
unique characteristics of its building materials —
especially their immunity to  moisture  — make
them more suitable to a variety  of end uses than
traditional  products.
ECONOMICS
    Initial capital  investment costs totalled
$689,000.  Coon Manufacturing is currently able
to produce products predominately for midwest
markets, with some of its products enjoying sales
throughout North America (Table 66). Product
variety ensures a seasonally stable demand while
the use of previously-owned equipment (Coon
purchased most of its equipment used) allows for
low start-up expenses.

    Coon Manufacturing sells its products to con-
struction companies, lumber yards, and  other
retail markets.  Because some consumers buy
directly from the company's, storage  yard, end
users of Coon's products include not only contract
builders, but urban anckrural consumers as well.
The markets for these products are rapidly ex-
panding, and the-company is constantly develop-
ing new products for manufacture.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                          75

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    • Coon MANUFACTURING
  Table 64  Process Information
                                                                  H 5,
                                                                   1,1	1	III!	b	M
              recycling level:

         feedstock input rate:



       production output rate:



   production design capacity:



     capacity utilization factor:



         feedstock reject rate:

            waste generated:

           disposal methods:

                 equipment:
                employment:
         scheduled operation:



            area requirement:

                  plant size:


             warehouse size:

          energy requirement:
tertiary

wash system:             4.8 TPD
sheet extrusion system:    3.7 TPD
rotational molding system:  0.4 TPD

wash system:             4.6 TPD
sheet extrusion system:    3.7 TPD
rotational molding system:  0.4 TPD

wash system:             13.3 TPD
sheet extrusion system:    6.1 TPD
rotational molding system:  1 .2 TPD

wash system:             35%
sheet extrusion system:    61%
rotational molding system:  33%

wash system:             4%

bottle caps, paper and metals from pre-wash sorting

landfill

wash system:  bale buster, shredder, grinder, conveyor, blower, air
separation system, auger, holding bins, dryer, washing unit
sheet extrusion system: grinder, blender, extruder, dryer, conveyors,
dies, plastic testing equipment
rotational molding system:  rotational molder, chiller, cooling tower, molds

wash system:             3 full time
sheet extrusion system:    6 full time
rotational molding system:  6 full time
administrative/sales:       7 full time
total:
                                                         22 full time
wash system:             260 days per year; 1 shift per day
sheet extrusion system:    260 days per year; 3 shifts per day
rotational molding system:  260 days per year; 1 shift per day

5 acres

13,000 square feet, enclosed
22,000 square feet, outside storage

included in plant size

550,000 kWh per year of electricity;
30,000 gallons per year of propane gas
           water requirement:   36,000 gallons per year
                                                                         Source: Institute for Local Self-Reliance, 1992.
76
     Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                     •PLASTIC-
  Table 65  Product Information
production
products rate
manufactured (TPY)
extruded sheets
rotational molded products
total
960
104
1,064
total post-
recycled consumer
content content
100%
100%
100%
100%
0%
90%
estimated
annual
sales
$1,152,000
$364,000
$1,516,000
gross
revenue
per ton
$1,200
$3,500
$1,400
value
added
per ton
$990
$3,100
$1,200
                                                                        Source: Institute for Local Self-Reliance, 1932.
  Table 66  Economic Information
          initial capital cost:
                labor cost:



               energy cost:



            feedstock cost-

            total O&M cost:




            gross revenue:

       capital cost/capacity:


           O&M cost/sales:
$689,000 (1987-92)
wash system:
sheet extrusion system:
rotational molding system:
support equipment:
land and buildings:

$390,000 per year
wash system:
sheet extrusion system:
rotational molding system:

$55,400 per year
electricity:
propane:
       $200,000
        210,000
        150,000
         75,000
         54,000


      $206,000 per year
       155,000 per year
        29,000 per year
$37,400 per year
 18,000 per year
$199,360 per year
$968,640 per year
wash system:
sheet extrusion system:
rotational molding system:

$1,516,000 per year

wash system:
sheet extrusion system:
rotational molding system:

wash system:
sheet extrusion system:
rotational molding system:
      $521,000 per year
       406,000 per year
        41,640 per year
      $17,300 perTPD capacity
       39,300 per TPD capacity
      137,500 perTPD capacity

      $434 per ton sold
        423 per ton sold
        400 per ton sold
       gross revenue/sales:    $1,400 per ton sold
                                                                        Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises
                                                                 77

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    • COON MANUFACTURING
    Labor costs account for over one-third  of
Coon's operating expenses.  Feedstock costs are
approximately half that amount.
REPLICABILITY
    Currently, only a few companies in the U.S.
manufacture products from 100 percent scrap plastic,
representing a very small portion of the total plastic
product market. Many of today's virgin plastic prod-
ucts can be made from recycled resin using a Coon-
type process, indicating its growth potential of re-
cycled resins' share of the plastic market.

    Coon  Manufacturing is currently seeking to
expand its operations  to other locations and is
                looking to license its systems to other companies.
                Recoverable HDPE scrap from a population of one
                million is enough feedstock to support a facility
                the size of the current Coon plant.  The company
                is also interested in joint ventures with other com-
                panies or community development corporations.
                CONTACTS
                Bill Coon, President
                Coon Manufacturing
                202 C Street
                P.O. Box 196
                Spickard, Missouri 64679
                816-485-6299
                816485-6122 fax
78
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                         LANDFILL ALTERNATIVES, INC.
                    Locations:
                Start-up Dates:
        Recycled Material Used:

                    Products:
Elburn, Illinois
1988
polystyrene fabrications

polystyrene granules
polystyrene pellets
     Production Design Capacity:    6 TPD
 COMPANY BACKGROUND
    James Frank and Bill Roberts founded Land-
 fill Alternatives, Inc. in 1988 with the goal of
 recycling excess industrial expanded polystyrene
 (EPS or foam PS).   While manufacturers of EPS
 products have always reused some of their in-
 house scrap, much of it still goes to landfills.
 Today, Landfill Alternatives is able to accept post-
 consumer EPS due to the donation of an EPS
 wash system  by Amoco Foam Products  which
 Landfill Alternatives redesigned to operate at a
 higher throughput,  in 1992, Landfill Alternatives
 was the only self-sustaining, for-profit processor
 of post-consumer EPS in the U.S.
FEEDSTOCK
    Landfill Alternatives uses approximately 1.65
million pounds per year of scrap EPS, half of
which is post-consumer material (Table 67). The
company pays 4 cents per pound ($80 per ton) for
industrial scrap it receives from packaging fabri-
cators.   Post-consumer  EPS comes from school
and commercial food-service operations, churches,
special events, municipal recycling programs, and
building contractors who use EPS insulation. The
                company requires incoming post-consumer mate-
                rial to be free of food waste (except what sticks
                to the material), mold and free contaminants.

                    Landfill Alternatives collects post-consumer
                scrap EPS from within a 40-mile radius of its
                plant, charging suppliers 39 cents per mile plus
                $10.50 per hour for the driver, regardless of the
                load size.  Since December 1991 it has also
                charged suppliers an additional 15 cents per
                pound for all food-service material to cover some
                of the cleaning expenses. The cleaning charge is
                intended to motivate suppliers to remove food
                and non-PS material from the shipment,  as well
                as to help offset the company's washing cost of
                20 cents per pound.  Landfill Alternative's sup-
                pliers calculate that the total tipping fee per meal
                is between 0.25 cents and 1.33 cents.  Suppliers
                outside the forty mile radius ship to the company
                at their own expense.
                PROCESS
                   Post-consumer EPS arrives at the plant in
                bales or bags which are initially stored outside.
                Once inside, a worker manually sorts the mate-
                rial to  remove the large contaminants and to
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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    • LANDFILL ALTERNATIVES, INC. •
  Table 67  Feedstock Information
                consumption  recycled  post-consumer    price
        material       (TPY)  content        content paid/ton
 EPS fabrications
830    100%
50%
$80
                                    Source: Institute for Local Self-Reliance, 1992.
PRQDUCTS
    Landfill Alternatives pro-
duces EPS granules made from
50 percent post-consumer and
50 percent industrial scrap. The
company also markets other
processors' recycled and non-re-
cycled EPS pellets.
separate high impact-strength PS (e.g., cottage
cheese containers and other non-foam PS) from
low impact-strength PS (foam PS).  In addition,
colored feedstock can be separated from uncol-
ored. Landfill Alternatives rejects approximately
35 percent of the post-consumer feedstock and 0.5
percent of industrial feedstock (Table 68).   The
sorted  EPS  is  fed into  the
washer/dryer system.
                                Landfill Alternatives produces EPS granules at
                            its facility and subcontracts the production of EPS
                            pellets, which are made from the granules.  Al-
                            though granules and pellets usually consist of 50
                            percent post-consumer and 50 percent industrial
                            scrap (Table 69), on special request, the company
                            can manufacture any combination of industrial
    The wash line, which has
been  in operation since June
1991,  consists of a single unit
that washes and dries up to 65
pounds  of  EPS  per  hour.
Batches take about ten minutes
to dry after which the material
is introduced to the densifier,
which heats  the EPS to about
270' F. The heat, along with a
vacuum, releases air and any
residual  blowing  agent from
the foam, and compacts it into
granules  with an average bulk
density of 33 to 35 pounds per
cubic foot.

    Efficiency-oriented modifi-
cations to the Landfill Alterna-
tives  facility  include  improve-
ments made to the  washer/
dryer and to the densifier sys-
tem.  The  company upgraded
the washing  line by  installing
more reliable components, an
improved sorting  system and
high-velocity sprays (to reduce
water consumption). It also
made system changes to in-
crease the  rate of  throughput.
                Table 68  Process Information
                      recycling level:
                 feedstock input rate:
               production output rate:
              production design capacity:
               capacity utilization factor:
                 feedstock reject rate:
                    waste generated:

                   disposal methods:


                          equipment:
                        employment:


                 scheduled operation:
                   area requirement:
                          plant size:
                     warehouse size:
                 energy requirement:
               primary
               3.3 TPD
               3.3 TPD
               6.0 TPD
               54%
               2%
               blowing agent, organic food waste,
               various non-EPS materials
               blowing agent vented to atmosphere,
               organic waste into sewage system,
               non-EPS materials landfilled

               washer/dryer, densifier
               9 full time, 4 part time; 1 skilled,
               12 unskilled
               250 days per year; 2 shifts per day
               0.5 acres
               5,000 square feet
               NA
               180,000 kWh per year of electricity;
               83 MCF per year of natural gas
                                          water requirement:   575 gallons per day
                                                                        Source: Institute for Local Sell-Reliance, 1992.
80
            Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                         -PLASTIC
    DOLCO PACKAGING COMPANY
                    location:
               start-up date;
       recycled  material used:
                   products:
             design  capacityi
             gro$$ revenues
          gross revenue/sales:
                employment;
Decanuv Indiana
1972, 1990 {accepted scrap)
polystyrene pellets (2 TPD)
foam polystyrene egg cartons (8 TPD)
50 TPD
$14,000,000  per year
$1,600 per ton sold
X45 full time
    BACKGROUND
        Dolco Packaging was the first manufacturer to use post-consumer material in EPS egg cartons after
    successfully arguingits case with the US. Food and Drug Administration (FDA). Dolco argued that because
    the eggshell separates the food from tfie egg carton these products should be exempt from the standard
    prohibiting post-consumer plastics in packaging that may contact food. Although falling short of exempting
    the container from the regulation, the FDA sent Dolco a letter of "non-ob^cfion" in March 1990, making
    it the first plastic food package to receive tacit approval to use post-consumer EPS in food containers.
    four
    FEEDSTOCK
        Dolco Packaging receives dean pelleti2ed polystyrene from processors for which it pays $800 to $900
    per ton.  The packaging manufacturer initially purchased all of its post-consumer EPS from Landfill Al-
    ternatives, Then in 1991, the National Polystyrene Recycling Company (NPRQ,a consortium of eight major
    PS manufacturers, opened a post-consumer PS recycling facility near Chicago. Dolco now purchases much
    of its feedstock from NPRQ but continues to purchase significant quantities from Landfill Alternatives.

        Dolco also works with its retail customers, primarily supermarket chains, to collect post-consumer PS
    packaging through in-store recycling bins. The company works with the retailer to get the collected material
    to a PS reprocessing plant from which Dolco purchases feedstock. The company also purchases ground
    PS compact-disc cases, which it feeds directly info its extruder without repelletizing.


    PROCESS
        Dolco uses the same production process to produce egg cartons from scrap polystyrene as it uses for
    virgin polystyrene feedstock, except that Dolco uses a pre-extrusion auger-screw to mix together the scrap
    and virgin pellets. The company uses a non-CFC, non-HCFC blowing agent to form its EPS sheets.

        Dolco Packaging has addressed recycling issues throughout its entire operation since 1989 . The com-
    pany currently uses or recycles 995 percent, by weight, of its incoming material.  The small loss is in the
    form of blowing agent and unusable contaminants.  Between 1989 and 1991, the Decatur plant reduced
    the  amount of material  it sends to the  landfill by about 70 percent.
                                                                            Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                    81

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   -LANDFILL ALTERNATIVES, INC. •
 Table 69  Product Information

products
manufactured
PS pellets & flakes
production
rate
(TRY)
813
total
recycled
content
100%
post-
consumer
content
50%
estimated
annual
sales
$650,000
gross
revenue
per ton
$800
value
added
per ton
$700
and post-consumer scrap, up to 100 percent post-
consumer. The company sells most of its produc-
tion to Dolco Packaging for use in egg containers
(see p. 113) and to Amoco Foam Products, which
uses the EPS  to manufacture insulation board
from 50 percent recycled  EPS (25 percent post-
consumer).

    Dolco Packaging manufactures foam PS egg
cartons from 25 percent post-consumer EPS. The
company also includes a limited amount of post-
consumer EPS in its  other products, such  as
dunnage trays and cushioning, each containing 25
percent post-consumer scrap.  Dolco plans  to
increase the post-consumer content in egg cartons
made at its Wenatehee, Washington plant to  40
percent by the end of 1992.

    Dolco incorporates post-consumer EPS into
only 10 percent of its egg cartons because of color
limitations.  Extra storage silos needed for sepa-
  Table 70  Economic Information
     Initial capital cost:
    modifications cost:
           labor cost:
         energy cost:
       feedstock cost:
       total O&M cost:
       gross revenue:
  capital cost/capacity:
      O&M cost/sales:
  gross revenue/sales
$400,000 (1988)
$30,000 (1989-1991)
$115,000 per year
$16,500 per year
$66,400 per year
$413,000 per year
$650,000 per year
$67,000 perTPD capacity
$510 per ton sold
$800 per ton sold
                        Source: Institute for Local Self-Raliance. 1992.
rate colors of post-consumer EPS make storing
more  than one color prohibitively expensive.

   A major factor affecting the use of post-con-
sumer EPS in finished products is the  differing
melt flow rate — an ASTM designation measur-
ing the rate at  which melted material flows
through orifices of standard  size — between the
various resins. Unlike melt flow rates for virgin
resins, which are easily controlled, flow rates for
post-consumer material is dependent on the indi-
vidual flow rates of the incoming material.

   Because  current  extrusion operations are
gauged for a specific flow rate, the relatively high
melt flow rate of recycled EPS (around 3.5 grams
per ten minutes compared to flow rates between
1.7 and 2.0 for  virgin resin) is of concern  to
companies using the recycled resin.  While some
of Landfill Alternative customers accept plastic
with  flow rates  as high as  12, others,  such  as
          Dolco Packaging, have difficulty with
          flow rates exceeding  5.  To keep flow
          rates low, Landfill Alternatives identifies
          the incoming material — with indi-
          vidual flow rates ranging  from 1 to 50
          — and mixes them to obtain desired
          rates for the flaked finished product.
          Pelletizing EPS  further increases flow
          rates.
         ECONOMICS
             The  operating costs  for Landfill
         Alternatives are presented in Table 70.
         The market price for recycled PS pellets
         is between 35 and 45 cents per pound.
         Egg cartons containing 25 percent post-
         consumer PS sell for $1.00 to $1.50 per
         pound, representing $0.15 to $0.27 in
         value added to each pound of feedstock.
82
            Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                      -PLASTIC-
     Future expenses for Landfill Alternatives in-
 clude replacing the current densifier system with
 a technology expected to reduce operating costs.
 REPLICABILITY
     The Landfill Alternatives facility can be rep-
 licated in most parts of the country if feedstock
 is available within a 40- to 60-mile radius.  Since
 the technology is relatively small-scale, it is not
 limited to large urban centers.  Landfill Alterna-
 tives is interested in siting new facilities in Kan-
 sas City or Atlanta, but is awaiting sufficient
 demand  for its product from nearby  PS resin
 users. The company expects recycled-content and
 procurement legislation to help build these mar-
 kets. Because all the equipment now used is "off-
 the-shelf,"  the company could have a new plant
 operational within six weeks of signing a lease on
 a building.

     Expanding markets  for post-consumer PS
 pellets depends largely on the willingness of the
 FDA to issue  additional "non-objection letters"
 allowing recycled material to be used  in food-
contact packaging.  Recently the FDA issued a
similar letter of non-objection allowing companies
to market post-consumer PET produce containers.
PS manufacturers are now seeking FDA non-ob-
jection for additional products.  According to
Dolco officials, perceived contamination problems
make the largest potential market — meat trays
— the least likely to gain non-objection status.
CONTACTS
James R. Frank, Secretary/Treasurer
Landfill Alternatives, Inc.
628 East North Street
Elburn,  Illinois  60119
708-365-2480
708-365-2484 fax

Philip Laughlin, Sales Manager
Dolco Packaging Company
2110 Patterson Street
Decatur, Indiana  46733
219-728-2161
219-728-9958 fax
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                          83

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POLY-ANNA PLASTIC
PRODUCTS, INC.
                      Location:
                 Start-up Date:

          Recycled Material Used:
                     Products:
      Production Design Capacity:
Milwaukee, Wisconsin
1988

polyethylene terephthalate
high-density polyethylene
high-impact polystyrene
polycarbonate
acrilonitrile butadiene styrene
acrylic

high-density polyethylene recycling bins
flakes and pellets of other resins
3.5 TPD for recycling bins
 COMPANY BACKGROUND
    Marty Forman, president and founder of Poly-
 Anna Plastic Products, Inc., began his career in
 recycling with Forman Metal  Company, a scrap
 metal firm founded by his father. In 1988, Forman
 expanded the business to include plastics, and
 founded Poly-Anna.

    In 1991, Forman approached Engineered Plas-
 tics (Menomonee Falls, Wisconsin), a custom plas-
 tic-molding company with the idea of making and
 marketing recycling bins made from post-con-
 sumer HDPE.  At first, Engineered Plastics was re-
 luctant, but reconsidered  its stance when the
 Wisconsin legislature began work on a  recycling
 bill.  Using Engineered Plastics' existing  equip-
 ment, the two companies began experimenting
 with Poly-Anna's recycled material,  and eventu-
 ally developed a recycling bin made from 100
 percent post-consumer HDPE, which Poly-Anna
 introduced in October 1991.
               FEEDSTOCK
                  Poly-Anna buys recyclable plastics both for its
               own consumption and for sale to other companies.
               Post-consumer materials comes from municipal
               recycling programs, private recyclers, and waste
               haulers. These materials include PET soda bottles,
               HDPE milk jugs and detergent bottles, PVC
               bottles, and commingled plastics (Table 71).

                  Incoming PET bottles must be baled and
               consist of at least 95 percent 2-liter soda bottles.
               All colors are acceptable, and they may include
               HDPE base  cups and labels, however, Poly-Anna
               will generally pay more for bales of clear PET. All
               bales must be completely free of PVC contamina-
               tion.

                  Although the company once accepted both
               natural and mixed colored HDPE bottles, it has
               recently shunned mixed-color HDPE due to de-
               clining end-markets. Natural HDPE bottles must
 84
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                     -PLASTO'
   Table 71  Feedstock Information
consumption
material
PET
natural HOPE
HIPS
PC
ABS
acrylic
total
(TPY)
750
375
200
150
125
75
1,675
recycled post-consumer
content
100%
100%
100%
100%
100%
100%
100%
content
100%
100%
0%
0%
0%
0%
67%
price
paid/ton
$50
$90
NA
NA
NA
NA
NA
                                             Source: Institute for Local Self-Reliance, 1992.
 be rinsed and capless, although labels are accept-
 able.  Again, no PVC contamination is allowed.

    In addition to  post-consumer materials, the
 company buys virtually any scrap plastic from
 local industrial sources.  Some examples of these
 materials include:  vinyl, polyethylene film, and
 high-impact polystyrene, as well as PVC from
 window-casing manufacturers, and polycarbonate
 and acrylic from local display-sign manufacturers.

    Poly-Anna pays the current market price for
 baled natural HDPE bottles and baled PET soda
 bottles, but does not usually pay for other post-
 consumer materials (nor does it usually charge a
 tipping fee).  Poly-Anna pays shipping costs for
 feedstock that meets its specifications.
 PROCESS
    Manufacturing the recycling bins from scrap
 HDPE involves three companies, each performing
 a separate function in the process.  Poly-Anna
 sorts and bales  the HDPE containers which are
 then sent to M.A. Industries for decontamination.
 The bins are formed at Engineered Plastics in
 Wisconsin and  delivered  to  Poly-Anna  which
 markets them.  The production process for each
 company follows below and is detailed in Table
 72.

 Poly-Anna:
    Workers sort incoming bales of bottles  by
 resin type. PVC is the most difficult contaminant
 to remove due to the similarity of PET and PVC
                         bottles.   Bales con-
                         taining PVC bottles re-
                         quire manual sorting.
                         Next, workers break
                         the bales into a hop-
                         per.  The bottles feed
                         onto a conveyor belt
                         and  pass through a
                         metal detector that re-
                         moves cans (both fer-
                         rous and non-ferrous),
                         but ignores small ob-
                         jects like bottle caps.
                            The conveyor belt
                         drops the bottles into
                         a    100-horsepower
                         granulator, which pro-
duces 3/8-inch  flake.  The flake is carried via
cyclone blower to a gaylord. A bag house on the
blower catches the plastic dust,  which  is recycled
separately. The company also has a small grinder
yielding a 1/4-inch flake, which Poly-Anna uses
for smaller batches and special runs, like grind-
ing plastic wire-casing.  Poly-Anna sends HDPE
flakes, that will  eventually become the recycling
bins,  to M.A. Industries near Atlanta, Georgia.

M.A.  Industries:
    M.A. Industries uses a flotation separator (or
"float/sink classifier") to remove contaminants
such  as PET, PVC, and aluminum from  the
material sent from Ploy-Anna. The flakes are then
sent to a scrubber that washes them and removes
glues and labels.  The scrubber discharges the
clean flakes through a dewatering screen  to re-
cover  the washing liquid, which the company
treats and reuses.  A second float/sink classifier
removes any remaining contaminants from the
flakes, a spin dryer dries them, and an extruder
forms  them  into pellets.

    The decontamination process has a capacity of
2,000 pounds per hour and requires three to five
operators, depending on the type and cleanliness
of the  feedstock. It uses 15  gallons of water per
minute , requires 330 horsepower, and needs 8,000
Btu per hour of natural gas for the dryer.

Engineered Plastics:
    As HDPE pellets arrive from M.A. Industries,
workers load them into a hopper above the in-
jection-molding equipment.  The hopper feeds the
pellets and a colorant into a chamber which melts
the pellets to a syrupy consistency.  Engineered
Plastics injects the molten HDPE  into the recycling
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                          85

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    -POLY-ANNA PLASTIC PRODUCTS, INC. •
  Table 72  Process Information
                                                                                       1}+H~ J
                recycling level:
           feedstock input rate:
         production output rate:
     production design capacity:
       capacity utilization factor:
           feedstock reject rate:
              waste generated:
             disposal methods:
                    equipment:
         employment: P-A.P.P.:
                        MA/.:
                          E.P.
           scheduled operation:
              area requirement:
                     plant size:
    energy requirement P-A.P.P.:
                        M.A.I.:
                          E.P.:
secondary
1.5TPD[a]
0.12TPD[b]
0.96TPD[c]
13%
5% (for post-consumer material)
PVC, paper, metal and other waste
landfill
                                          I
conveyor, grinders, wash/dry system, injection molder
4 full time
5 full time per shift (HOPE line only)
2 full time (for 1 injection molder)
250 days per year; 1 shift per day [d]
2.5 acres [d]
10,000 square feet [d]
246 kW of electricity
8,000 Btu per hour of natural gas
NA
             water requirement:    15 gallons per minute (M.A. Industries) [e]
  [a] Poly-Anna collects 750,000 PPY of HOPE.
  [b] 45,000 Ibs. of curbside containers from Sepember 1991 through May 1992.
  [c] Based on projected sales.
  [d] Poly-Anna only.
  [ej Both Poly-Anna and Engineered Plastics have low water requirements.
                                                                           Source: Institute for Local Sell-Reliance, 1992.
bin mold at pressures approaching  20,000 psi.
Cooling lines, built into the mold, begin to solidify
the resin as soon as it enters the mold. The mold
is opened and the product is ejected.
    The HDPE resin  used to make blow molded
milk and detergent bottles is not designed for the
injection molding process.  As a result, Engineered
Plastics molded  triangular ribs into the sides of
the bins to  prevent warping as  they  cool.  En-
                    gineered Plastics uses the same injection-molding
                    equipment to make virgin products, however, the
                    heat and  pressure settings must be reset for the
                    different characteristics of the material.
                        Injection molding  equipment can produce
                    1,440 bins daily (6,900  pounds), however,  Engi-
                    neered Plastics currently molds only as many bins
                    as Poly-Anna's  customers  have already ordered.
86
   Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                    - PLASTIC -
   Table 73  Product Information
production total post- estimated
products rate recycled consumer annual
manufactured (TRY) content content sales
recycling bins 240 100% 100% $460,000 [a]
PET[b] 713 100% 100% $477,700 [c]
HIPS[b] 200 100% 0% $94,000 [c]
PC[b] 150 100% 0% NA
ABS[b] 125 100% 0% NA
HDPE[b] 116 100% 100% $48,720 [C]
Acrylic [b] 75 100% 0% NA
total 1,619 100% 66% >$1 ,080,420
[a] Based on average sales price of $4.60 per bin and projected sales of 100,000 bins.
[b] May be in either flake or pellet form.
[c] Based on median sales price for flakes, as quoted in Plastics News, March 9, 1992, page 23.
gross
revenue
per ton
$1,900
$700
$470
NA
NA
$420
NA
NA



value
added
per ton
$1,700
$670
$470
NA
NA
$420
NA
NA



                                                                        Source: Institute for Local Self-Reliance, 1992.
 PRODUCTS
    Poly-Anna's primary product is an 18-gallon
 curbside recycling bin made from 100 percent
 post-consumer HDPE  collected from  residential
 sources. The company designed the bins to nest
 within each other as well as to be cross-stackable.
 They can be made with or without drain holes,
 and may be custom-stamped  with a city or com-
 pany logo.  As a further service, Poly-Anna can
 ensure  that a municipal customer receives bins
 made from bottles that were collected in that
 municipality.  Each  green,  gray or  black bin
 weighs  about 4.8 pounds and contains the equiva-
 lent of  35 to 40 detergent  bottles.

    The company also sells industrial and post-
 consumer plastics in flake  or pellet form (Table
 73). The value added to the material is between
 10  and  15 cents per pound for  flakes (between
 $200  and $300 per ton), and approximately 25
 cents per pound ($500 per ton)  for pellets.
ECONOMICS
    Poly-Anna does not pay for the mixed-color
HDPE bales that it uses to produce the recycling
bins.  The operating cost for the grinding of this
material is  approximately  10 to 12  cents per
pound.  Poly-Anna  purchases back the clean,
flaked HDPE from M.A. Industries for 25 to 30
cents per pound.  Subtracting the value of the
material sold to M.A. Industries (5 to 6 cents per
pound) yields a total cost of approximately 22
cents per pound (Table 74).

    No new equipment was  needed for M.A. In-
dustries and Engineered Plastics to process the
recycled HDPE.  Poly-Anna paid $300,000 for the
bin mold with the help of a  $125,000 grant from
the Wisconsin Department of Natural Resources.

    It costs Poly-Anna about $2.20 to mold each
bin — at 4.8 pounds per bin,  that's about 46 cents
per pound.  Considering that the original  cost of
the feedstock was nonexistent, all of this 46 cents
is  considered value added.   If the cost  of the
material  purchased from M.A. Industries is in-
cluded, the value-added figure drops to roughly
30 cents  per pound.  The finished bins sell for
roughly 10 percent more than a comparable prod-
uct made from entirely virgin HDPE, in part due
to  the currently depressed prices for virgin HDPE.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                          87

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   -POLY-ANNA PLASTIC PRODUCTS, INC.
  Table 74  Economic Information
      Initial capital cost:
            labor cost:
          energy cost:
       feedstock costs:
        total O&M cost:
        gross revenue:
   capital cost/capacity:
       O&M cost/sales:
   gross revenue/sales:
$150,000 for plant; $300,000 for mold
NA
NA
NA
$125,000 per year (includes all materials)
$460,000 per year from recycling bins
$125,000 perTPD capacity
$77 per ton sold
$1,917 per ton of recycling bins sold
                                       Source: Institute for Local Sell-Reliance, 1992.
tatives of Poly-Anna and
Engineering Plastics will
provide technical assistance
to anyone wishing to make
the bin mold or any other
injection-molded product.

    The company is also
interested in entering into
joint  ventures  with other
organizations to manufac-
ture injection-molded prod-
ucts from 100 percent post-
consumer plastic.  A com-
plete  processing operation
with a capacity of 20 million
pounds per year would be
most  cost effective. Equip-
ment and real estate for such
an operation would cost ap-
proximately $2 million.
REPLICABILITY
   The Poly-Anna Plastic Products operation can
be replicated wherever sufficient source material
and a custom plastics-molder are available.

   Although the company's sales are growing,
low virgin-resin prices mean  sales of recycled
plastic and recycled-plastic products are less than
might otherwise be expected.  The potential na-
tional demand  for recycling bins is between 30
million and 40 million bins per year.  Poly-Anna
expects  to develop injection molds for new prod-
ucts  that might have larger markets with more
growth potential. The company may also acquire
its own plastic washing and drying system, al-
though it has no firm plans to do so at the present
time.

   Because the bin mold  was developed with
funding from a state grant, Poly-Anna must make
the technology and technical drawings of the mold
available for a  nominal fee. It would then  cost
about $300,000  to replicate  the mold.  Represen-
                           CONTACTS
                           Don Menefee, Product Manager
                           Poly-Anna Plastic Products, Inc.
                           6960 North Teutonia Avenue
                           Milwaukee, Wisconsin  53209
                           414-351-5990
                           414-351-3443 fax

                           Matthew H. Frady, Customer Service Manager
                           M.A. Industries, Inc.
                           303 Dividend Drive
                           Peachtree City,  Georgia  30269
                           404-487-7761
                           404-631-4679 fax

                           Keith Holsberger
                           Engineered Plastics
                           West 142 North 9078 Fountain Boulevard
                           Menomonee Falls, Wisconsin 53051
                           414-251-9500
88
           Manufacturing from Recyclabks: 24 Case Studies of Successful Enterprises

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                             TURTLE PLASTICS  COMPANY
                     Location:

                Start-up Date:

        Recycled Material Used:



                    Products:



    Production Design Capacity:
Cleveland, Ohio

1980

polyvinyl chloride
high-density polyethylene
polyethylene terephthalate
floor mats
urinal screens
resin pellets
6.5 TPD
COMPANY  BACKGROUND
   Thomas Norton, a retired agent for a lighting
manufacturer, was bored with retirement, and
wanted to make a contribution to society. In 1980,
he purchased a $30,000 plastics-separation system
and founded Cleveland Reclaim Industries, Inc.,
a company which pelletized PVC  scrap from
automobile-trim and sold it to manufacturers.
However business was slow due  to consumers'
concern over the source and quality of the scrap
plastic. So, in 1985, Norton founded Turtle Plas-
tics Company to manufacture his own end prod-
ucts from the scrap PVC.

   Rather than make a large investment in tech-
nological research and development,  Norton em-
phasized marketing and sales in developing Turtle
Plastics. He hired over 100 sales agents, produced
a catalogue, and advertised in national trade pub-
lications,  focusing on markets in the janitorial,
safety, industrial, floor-covering, and food-equip-
ment fields.  In 1991 Turtle Plastics sold 400,000
pounds of floor tiles, and boasted sales of more
than $700,000.
                    Floor tiles proved the best product for three
                reasons:  (1) they had an established market; (2)
                they can be a dark color — mixed post-consumer
                PVC is generally dark; and (3) they can be injec-
                tion-molded, a process that is forgiving of feed-
                stock inconsistencies.
                FEEDSTOCK
                    Turtle receives scrap PVC from both post-in-
                dustrial and post-consumer sources  (Table 75).
                Auto trim manufacturers and medical-supply
                manufacturers supply industrial scrap to the fa-
                cility while PVC swimming pool liners and intra-
                venous bags arrive from the post-consumer waste
                stream.  In addition to the scrap material, Turtle
                adds colorants (primarily black) and silicone car-
                bonate (obtained from the cleaning of industrial
                boilers) to its products.  The company uses sili-
                con carbonate to make a non-skid coating on the
                floor tiles.

                    Material received from the makers of automo-
                bile trim is black or gray, is made with industrial-
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                        89

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    -TuarLE PLASTICS COMPANY •
  Table 75  Feedstock Information
consumption
material (TRY)
Industrial-scrap PVC
post-consumer PVC
PET, HOPE
total
750
25
250
1,025
recycled post-consumer
content content
100%
100%
100%
100%
0%
100%
100%
27%
price
paid/ton
$0
$100
$0
' $2
                                              Source: Institute for Local Self-Reliance, 1992.
scrap PVC, and is often contaminated with poly-
ester film and adhesive tape.  Medical sources
supply a cleaner PVC material.  This material
includes transparent, rigid yellow and blue con-
tainers, and rejected intravenous (IV) bags. Post-
consumer sources  of PVC are  usually contami-
nated with dirt and  sand, and  require washing.
Turtle has also begun to collect used IV bags from
local hospitals, although it can't use those that
held body  fluids or  hazardous  pharmaceuticals.

    In addition to material it uses in its products,
Turtle receives post-consumer  HOPE and PET
from curbside collection  programs in the Cleve-
land area which it separates in its small-scale
materials recovery facility.  Turtle  has  recently
begun to experiment with post-consumer polysty-
rene for some new products.  The  PS comes in
pellet form from processors who wash and pel-
letize used fast-food containers. Overall the fa-
cility rejects 5 percent of the industrial scrap  it
receives, and  10 percent of the post-consumer
material, which a private hauler trucks to a land-
fill.
PROCESS
    As scrap PVC arrives at the plant, workers
hand separate the automobile trim and medical-
industry scrap by  color — black, gray, clear,
yellow, and blue.  The sorted material is shred-
ded, then ground and deposited in a gaylord.
Although Turtle ships the gaylords to an injection-
molding company to form the products, it retains
ownership of all  the molds and of the finished
products.
                                             The PVC swim-
                                         ming pool liners go
                                         through a shredder,
                                         then are washed and
                                         dried before passing
                                         through an extruder
                                         and pelletizer. Turtle
                                         sells PVC it can't use
                                         to other manufactur-
                                         ers for use in manu-
                                         facturing shoe soles,
                                         fishing poles, lounge-
                                         chair parts, and other
                                         products.

                    Floor tiles produced on-site are given a non-
                skid coating at Turtle's facility.  A worker uses
                a paint roller to spread epoxy on the them, then
                sprinkles them with silicone carbonate.  The
                coated tiles dry for 24 hours. The company plans
                to automate this process soon.

                    A portion of the Turtle operation functions as
                an intermediate processing center (IPC). The com-
                pany processes and pelletizes PET  and HDPE
                scrap for other manufacturers.  The IPC, designed
                by Turtle and located in the plant, accepts bags
                of commingled  recyclables and separates glass,
                metal and plastics, for sale to manufacturing op-
                erations.

                    Turtle has two patented wash systems:  an
                older one for the PVC swimming pool liners, and
                a new one for the post-consumer PET and HDPE.
                The ground material goes through an off-the-shelf
                classifier that uses gravity to remove metals and
                other heavy contaminants.  A blower then trans-
                ports the plastic to a holding vat, which feeds a
                washer — an  enclosed canister that agitates the
                plastic in hot water. A gas-fired dryer removes
                the moisture.

                    The entire system requires about 185 kW of
                electrical service (Table  76).   The plant uses about
                500 million Btu of natural gas per year for space
                and water heating. Of this, the dryer burns about
                150,000 Btu per year.
                PRODUCTS
                    Turtle makes its Turtle Tiles®  from  100
                percent scrap PVC (Table 77).  The product is an
                injection-molded, 12-inch square, 3/4-inch thick
90
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     . PLASTIC •
  Table 76   Process Information
              recycling level:
         feedstock input rate:
       production output rate:
  production design capacity:
    capacity utilization factor:
        feedstock reject rate:
            waste generated:


           disposal methods:
                 equipment:


                employment:


        scheduled operation:
           area requirement:
                  plant size:
             warehouse size:
         energy requirement:
tertiary/primary (products/pellets)
3.4 TPD
3.2 TPD
6.5 TPD [a]
49% [a]
6 %
assorted waste from MRF system
and rejected scrap

landfill
grinders, shredders, gravity separator,
washer/dryers, baler

10 full time, 13 part time;
2 skilled, 21 unskilled

300 days per year; 1 shift per day
3 acres
55,000 square feet
NA
444,000 kWh per year of electricity;
500 million Btu per year of natural gas
          water requirement:    low
  [a] Includes IPC, based on plastic's current share of IPC input (23 percent).
                                           Source: Institute for Local Self-Reliance, 1992.
  Table 77;  Product Information
interlocking tile, designed
to absorb  impacts and
vibrations.   Most of the
tiles are made from scrap
automobile trim.   While
black is the most com-
mon color, Turtle Tiles
also come  in gray, yel-
low, blue, red, orange,
and purple, depending
on  the  feedstock  color.
Turtle produces some of
its  tiles  with a silicone
carbonate non-skid grip
surfacing.  All the tiles
are comparable in quality
to similar products made
from virgin materials.

    The  company also
makes  urinal screens,
named       "Oui-Oui
Skreen." These are injec-
tion-molded from black
or blue  PVC, and have
an added scenting mate-
rial. Both the floor mats
and the urinal screens
are marketed in the U.S.
and internationally.

    Turtle also processes
post-consumer PET and
HOPE, which it markets
to other processors and
manufacturers  in both
flake and pellet form.  It
also sells  about 15,000
pounds  of surplus PVC
production
products rate
manufactured (TPY)
floor mats
urinal screens
PVC pellets
PET & HOPE pellets
total
200
1
511
238
950
total post-
recycled consumer
content content
100%
100%
100%
100%
100%
10%
10%
0%
100%
27%
estimated
annual
sales
NA
NA
NA
NA
$1,000,000
gross
revenue
per ton
NA
NA
NA
NA
$1,100
value
added
per ton
NA
NA
NA
NA
$990
                                                                         Source: Institute for Local Sell-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                 91

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    -TURTLE PLASTICS COMPANY •
   Table 78  Economic Information
      Initial capital cost:
      modification cost:
             labor cost:
           energy cost:
         feedstock cost:
         total O&M cost:
         gross revenue:
    capital cost/capacity:
        O&M cost/sales:
    gross revenue/sales:

   [a] ILSR estimate.
$30,000 (1980)
$500,000
$290,000 per year [a]

$28,000 per year [a]
$2,500 per year

NA

$1,000,000 per year
$4,600 per TPD capacity
NA

$1,100 per ton sold
                         Source: Institute (or Local Sail-Reliance, 1992.
per year.  Turtle is in the process of developing
products made of recycled PS, including license
plate frames, six-inch rulers, and  office-paper
recycling trays.
ECONOMICS
    Tom Norton started Cleveland Reclaim in 1980
with $30,000 of combined bank loans and personal
funds. Over the years, Turtle has added $500,000
worth of equipment and plant modifications (Table
78).

    Operating expenses for the IPC are about
$220,000 per year, including $139,000 for labor,
$30,000  for rent, $25,000 for utilities, $12,000 for
maintenance,  $12,000 for waste  disposal, and
$3,000 for  insurance.   Operating expenses for the
   washing and grinding systems are not avail-
   able.  Natural gas energy costs run approxi-
   mately $2,000 per year and electrical costs are
   estimated at $26,000 per year.
   REPLICABILITY
       The technology that Turtle uses in its
   Cleveland plant can be employed wherever
   sufficient feedstock is available (sufficiency will
   vary depending on the product manufactured).
   The economic viability of this type of plant is
   based on minimum annual sales of $500,000,
   although products with a particularly low per
   ton value may  require higher sales volume.
       In addition to considering purchasing new
   processing lines, Turtle is exploring the mar-
   ket viability of other injection molded products
   it could make without investing in new equip-
   ment.  Although Turtle is not considering any
   specific sites, the company is interested  in
   building new facilities close to sources of raw
   materials, either alone, or in joint ventures.

   Turtle is marketing its 20  ton per day IPC
system through its subsidiary, the Magnificent
Machinery Company.  The company has already
sold one to a major national waste-hauling firm.
The system sells for $295,000, installed, and the
customer is responsible for freight and unloading
expenses.
                          CONTACTS
                          Tom Norton, President
                          Turtle  Plastics Company
                          2366 Woodhill Road
                          Cleveland, Ohio  44106
                          216-791-2100
                          216-791-7117  fox
                                   Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                           WEBSTER INDUSTRIES
                     Location:
                Start-up Date:

        Recycled Material Used:


                     Products:

    Production Design Capacity:
Montgomery, Alabama

1978

low-density polyethylene
linear low-density polyethylene
high-density polyethylene
trash bags

100 TPD
COMPANY  BACKGROUND
   Webster Industries was founded in  1957 by
Chelsea Industries, a Boston-based plastics manu-
facturer, to produce trash can liners and food
bags.  In  1978, Webster bought a facility  in
Montgomery, Alabama, and installed its propri-
etary technology for producing trash bags from
recycled plastic.  An $8  million investment by
Webster in July, 1992 expanded the facility, add-
ing state-of-the-art post-consumer recycling tech-
nology and new bag-making equipment.  The
company is  in the process of  expanding and
improving if s second facility in Macomb, Illinois,
which also uses recycled material.
FEEDSTOCK
    Webster's suppliers include material recovery
facilities, scrap plastic brokers, plastics manufac-
turers and large-scale users of plastic-film prod-
ucts.  Webster has a purchasing department that
specializes in helping businesses and industries es-
tablish plastics-collection programs that include
minimal sorting and cleaning. As other manufac-
turers utilize Webster's existing scrap sources the
                 scrap prices rise.  Webster then locates new,
                 lower-cost sources that help Webster maintain its
                 competitive cost advantage.

                     The company accepts LDPE, LLDPE, and
                 HDPE in many  forms.  Post-consumer LDPE
                 includes pallet wrap, stretch wrap, merchandise
                 bags, and light-duty agricultural film (such as
                 greenhouse film). Industrial scrap is primarily
                 LDPE and LLDPE, usually from discarded rolls of
                 stretch wrap, film products rejects, and chunks of
                 plastic that are produced when manufacturing
                 equipment is started up.  The HDPE is mostly
                 post-consumer scrap, including rigid oil, detergent,
                 and shampoo bottles.  The feedstock can arrive
                 either loose or baled (Table 79).

                     The price Webster pays for feedstock varies
                 considerably, depending on the cleanliness of the
                 material.  The price of feedstock affects the mix
                 of resins that goes into a particular batch.

                     Webster's state-of-the-art wash system allows
                 the facility to handle material that is contaminated
                 with grit and dirt. The facility also forgives small
                 amounts of incompatible resins, bottle caps, bits
                 of paper, and an occasional soda can. However,
                 Webster does not accept material contaminated
                 with toxic substances, such as pesticides.  The
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                          93

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     • WEBSTER INDUSTRIES
   Table 79   Feedstock Information
                       consumption   recycled  post-consuner      price
               material        (TPY)   content         content   paid/ton
  LDPE, LLDPE, HOPE    25,000 [a]
        virgin materials          NA
                 total
NA
100%
  0%

  NA
50%
 0%

 NA
NA
NA

NA
  [a] ILSR estimate based on the fact that tine two existing Webster facilities use
     approximately 50,000 tons per year, and one facility would use half of that total.
                                              Source: Institute for Local Self-Reliance, 1992.
facturer,  with  the
company's own tech-
nology. The system re-
moves non-compatible
resins and non-plastic
contaminants,  cleans
the material, and grinds
it. Non-compatible res-
ins generally account
for about 5 percent  of
the dirty scrap feed-
stock — the plant  re-
jects 2 or 3 percent  of
the   total  incoming
 company prefers to use dirty
 plastics that it can clean it-
 self, as this results in  a
 higher value added to  the
 material at the plant.

    While some products,
 such as the Renew™ trash
 bags, are made of 100 per-
 cent recycled plastics, others
 are  made  from a blend of
 recycled and virgin material.
 Each year, Webster's two fa-
 cilities use approximately 100
 million pounds of recycled
 plastic, half of which is post-
 consumer.
PROCESS
    The following process
description  is valid  for  a
typical plant that Webster
would operate using its lat-
est technological innovations.
Workers begin by unloading
trucks into an area set aside
for manually sorting material
by color, type, and cleanli-
ness. The sorted material is
fed  into  a  state-of-the-art
cleaning system.

    The cleaning  system
combines equipment made
by Sorema, a machine manu-
   Table 80  Process Information \a\
                recycling level:
           feedstock input rate:
         production output rate:
     production design capacity:
       capacity utilization factor:
           feedstock reject rate:
              waste generated:
                  employment:
           scheduled operation:
             area requirement:
                    plant size:
               warehouse size:
           energy requirement:
             water requirement:
                        tertiary
                        100TPD
                        93 TPD
                        100TPD
                        93%
                        7%
                        wood, paper, incompatible
                        plastic resins, soil, grit
             disposal methods:   landfill

                   equipment:
                        baler, grinder, shredder, cutter, wash
                        system, Sorema system, pelletizer,
                        blown-film extruder, co-extruder,
                        bag-making equipment
                        >500
                        350 days per year; 3 shifts per day
                        17 acres
                        150,000 square feet
                        included in plant size
                        NA
                        low
  [a] ILSR estimates for a typical Webster-like plant.
                                         Source: Institute for Local Sell-Reliance, 1992.
94
     Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                   -PLASTIC •
  Table 81  Product Information
products
manufactured
Renew™ bags
Good Sense™ bags
other bags
total
production
rate
(TRY)
15,000
15,000
NA
NA
total
recycled
content
100%
50%
varies
NA
post-
consumer
content
30%
15%
varies
NA
estimated
annual
sales
NA
NA
NA
NA
value
added
per ton
NA
NA
NA
NA
                                                                       Source: Institute for Local Self-Reliance, 1992.
stock.  The wash water is cleaned, filtered, and
reused, thus, only a minimal  amount of water
needs to be added daily.

    After emerging from the wash, the flakes are
extruded into pellets.  The recycled-resin pellets
are then mixed with the virgin pellets (if neces-
sary), pigments, and scents, and  are fed into a
blown-film extruder. The extruder blows the plas-
tic into a tube-shaped bubble, which then col-
lapses. The flattened tube is then heat-sealed and
perforated to form rolls of plastic bags.

    During the two decades of plant operation,
the company has made modifications to the pro-
cess, the most recent of  which is the
addition of the wash system in  1992.
Table 80 provides more information on
Webster's manufacturing process.
 PRODUCTS
    Webster produces several types of
 plastic trash bags, which are sold under
 various brand names.  Renew™ bags are
 made from 100 percent scrap plastic, at
 least 30 percent of which is post-con-
 sumer waste. The Good Sense™ bag has
 a minimum of 50 percent scrap plastic,
 at least 30 percent of which is post-con-
 sumer waste.  The company expects to
 increase the post-consumer content in
 both bags to 60 percent of total scrap
 content by 1993.  Other companies con-
     tract with Webster to make a number of other
     products; the total recycled and post-consumer
     contents of  these vary according to the  client's
     specifications (Table 81).
      ECONOMICS
         Webster holds confidential specific economic
      information.  However, if built today, a similar fa-
      cility would cost between $4  million and $8 mil-
      lion.  Most figures listed in Table 82 are estimates
      based on industry averages.
 Table 82  Economic Information
   initial capital cost:
         labor cost:
       energy cost:
     feedstock cost:
     total O&M cost:
     gross revenue:
capital cost/capacity:


    O&M cost/sales:
gross revenue/sales:

 [a] ILSR estimate.
$4,000,000 to $8,000,000 (1992)
$10,000,000 per year [a]
NA
NA
NA
NA
$40,000 to $80,000
 per TPD capacity [a]

NA
NA
                                                                        Source: Institute for Local Self-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                95

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    •WEBSTER INDUSTRIES
REPLICABILITY
    Although the bag market is currently stable,
Webster's market share is expanding.   To  meet
this growth in demand, the company has an-
nounced two major modifications at its Montgom-
ery plant. The first — the addition of its clean-
ing system - will allow the company to increase
production capacity for recycled plastics by  more
than 40 percent.  And the second expansion —
addition of a high-molecular-weight bag technol-
ogy — will increase the total bag-making capac-
ity  by 50 percent.

    Future plans include a possible expansion of
its Macomb, Illinois plant, and locating new fa-
cilities at other locations.
CONTACTS
Michael Grancio,
Senior Vice President, Operations
Webster Industries
58 Pulaski Street
Peabody, Massachusetts  01960
508-532-2000
508-531-3354 fax
                                   Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                      AQUAPORE MOISTURE  SYSTEMS
                    Location:
                Start-up Date:
        Recycled Material Used:
                    Products:
    Production Design Capacity:
Phoenix, Arizona
1985
ground rubber
soaker hose
>25 TPD
COMPANY  BACKGROUND
   Aquapore Moisture Systems was founded to
develop and distribute environmental watering
products. Efforts to achieve that goal, beginning
in 1981, have resulted in a highly successful line
of Moisture Master soaker hose and drip water-
ing products.

   The company's commitment to quality and us-
ing recycled material has helped make it  the
leading manufacturer of soaker hose. Aquapore
has received certification from Scientific Certifica-
tion Systems, a non-profit testing company formed
to verify recycled content  and environmental
product claims.
FEEDSTOCK
    Aquapore uses two main ingredients to manu-
facture its soaker hoses.  Finely ground rubber
from scrap tires accounts for 65 percent of the
feedstock.  A crumb-rubber producer grinds the
rubber to  meet Aquapore's specifications, and
delivers the fine crumb in large sacks. The other
major ingredient in the hose is finely-granulated
virgin polyethylene (PE), which is shipped by
truck or rail and stored in  silos.
                    The price of both feedstocks can vary consid-
                 erably; the figures listed in Table 83 are based on
                 recent regional market prices and ILSR estimates.
                 PROCESS
                    Workers empty sacks of ground rubber into
                 a hopper.  The PE is piped in from the silos.
                 These materials are fed into an extruder.  The
                 extruder mixes and melts the materials, and then
                 forces them through a die to form the tube-shaped
                 hose.

                    The hose is then cooled and rolled to appro-
                 priate lengths.  Workers coil the segments around
                 spools, and a sample is taken in regular intervals
                 for quality-control tests.  All rejected material is
                 reground and  fed back into the extruder.

                    Workers then attach fittings for connection to
                 faucets or other hoses, coil the hose, and attache
                 label cards and plastic tie fasteners.  Thus pack-
                 aged, the hose is stored in a warehouse area
                 (which constitutes about half of the inside build-
                 ing  space), pending sale to retail outlets.

                    Although approximately 10 percent of  the
                 water used by the plant evaporates and is replaced
                 each day, annual water use is minimal, and constitutes
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                        97

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     -AQUAPORE MOISTURE SYSTEMS
    Table 83  Feedstock Information
consumption recycled post-consumer
material (TPY) content content
ground rubber
polyethylene
total
4,160 [b]
2,240 [b]
6,400
100%
0%
65%
100%
0%
65%
price
paid/ton [a]
$460-540
$480-1,000
$467-701
[a] Prices based on recent regional market prices.
[bj ILSR estimate.
 a negligible part of the total operating costs. Table 84
 summarizes Aquapore's manufacturing process.
                                                 PRODUCTS
                                                     Soaker  hoses
                                                 are ideal for water-
                                                 ing plants, flowers,
                                                 gardens and trees.
                                                 Easy to install, they
                                                 simply attach to a
                                                 faucet or garden
                                                 hose. Because water
                                                 seeps slowly and
                                                 evenly through the
                                                 porous walls of the
                                                 hose,  water use is
                                                 reduced by  up to
                                                 70 percent.  This
                                                 also means  water
                     is not lost to evaporation or runoff. Soaker hoses
                     promote healthy plant growth because water is
                     delivered directly to plant roots.  Table 85 pro-
                     vides more details on Aquapore's product.
                                                 Source: Institute for Local Self-Reliance, 1992.
   Table 84  Process Information
                 recycling level:
            feedstock input rate:
          production output rate:
     production design capacity:
       capacity utilization factor:
           feedstock reject rate:
               waste generated:
              disposal methods:
                    equipment:

                  employment:

           scheduled operation:

              area requirement:
                     plant size:
                warehouse size:
            energy requirement:
             water requirement:
   [a] ILSR estimate.
secondary
26 TPD [a]
26 TPD [a]
NA
NA
0%
OCC
recycled
extruder, cooling bath, automatic cutter, silos

80 full time manufacturing; 15 skilled, 65 unskilled;
20 full time sales and administrative

extruder: 250 days per year; 3 shifts per day
assembly stations: 250 days per year; 2 shifts per day
NA
75,000 square feet
45,000 square feet
1,000,000 kWh per year [a]
low
                                                                         Source: Institute for Local Self-Reliance, 1992.
98
   Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                  -RUBBER-
  Table 85  Product Information
products
manufactured
soaker hose
production
rate
(TRY)
6,400 [a]
total
recycled
content
65%
post-
consumer
content
65%
estimated
annual
sales
NA
gross
revenue
per ton
NA
value
added
per ton
$2,000 [b]
[a] ILSR estimate.
[b] ILSR estimate based on a $500 per ton cost for ground rubber, a $10 per hose retail price ($5,000 per ton),
and 50 percent of the retail price going to the manufacturer ($2,500 per ton).
                                                                      Source: Institute for Local Self-Reliance, 1992.
  Table 86   Economic Information
    initial capital cost:
          labor cost:
         energy cost:
       feedstock cost:
      total O&M cost:
       gross revenue:
  capital cost/capacity:
     O&M cost/sales:
  gross revenue/sales:

  [a] ILSR estimate.
<$10,000,000 [a]
$2,000,000 per year [a]
$50,000 per year [a]
$3,000,000 to $4,500,000 per year [a]
NA
NA
$30,000 perTPD capacity [a]
NA
NA
REPLICABILITY
    Aquapore is the dominant
manufacturer in the rapidly ex-
panding rubber soaker hose in-
dustry.  The company expanded
its existing facility in 1992, and
an additional 5,000 square feet of
office space is currently in the
planning stage.  Contingent on
continued market growth, the
company may consider opening
additional facilities in other loca-
tions over the next several years.
The parameters of these plants
would be similar to the Phoenix
facility.
                                Source: Institute for Local Sell-Reliance, 1992.
ECONOMICS
    The initial capital expense to build a facility
similar to the Aquapore plant is less than $10
million. All information on operating expenses is
proprietary, but some ILSR estimates are provided
in Table  86.

    Approximately 90 percent of Aquapore's sales
comes  from consumer hoses sold through hard-
ware and home-improvement retailers.  The re-
maining  10 percent includes  small commercial
customers, overseas sales, and industrial applica-
tions, such as aeration hoses for aquaculture. A
50-foot hose retails for between $9 and $14 ($4,500
to $7,000 per ton).
                            CONTACTS
                            Thomas Prassis, Vice President, Operations
                            Aquapore Moisture Systems, Inc.
                            610 South 80th Avenue
                            Phoenix, Arizona 85043
                            602-936-8083
                            602-936-9040 fox
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                      99

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 PROCESS FUELS,  INC.
                      Location:

                 Start-up Date:

         Recycled Material Used:

                     Products:



     Production Design Capacity:
Spokane, Washington

1995 (projected)

scrap tires

polymer oil
fuel gas
scrap metal
polymer oil: 2,880,000 gallons per year
fuel gas: 4,320,000 therms per year
scrap metal: 6TPD
 COMPANY BACKGROUND
    Joseph Munger, previously a principal owner
 of a mechanical-contracting firm, founded Process
 Fuels, Inc. (PH) in January 1988.  After more than
 four years of research and testing, PH has devel-
 oped the Tyrecyde® process, which converts scrap
 tires into two high-value products: polymer oil
 and fuel gas.  The technology permits 97 percent
 of a scrap tire to be recycled.

    Three pilot plants that use the Tyrecycle® pro-
 cess have been built in Spokane, Washington, with
 capacities of 100 pounds per  hour, one ton per
 hour, and six tons per hour. The products from
 these plants have passed performance tests at two
 independent laboratories.  The company is  now
 finalizing plans to construct its first two full-scale
 plants in the state of Washington. The first will
 be operating near Spokane in early 1995, and the
 second one  should be running in western Wash-
 ington  later the same year.  The projects have
 received the support of the Washington State
 Department of Trade and Economics. PM has also
 talked to several industrialists from Japan, Korea
 and Taiwan about the possibility of exporting the
 technology to Asia.  This case study focuses on
 the soon-to-be-completed Spokane plant.
                 FEEDSTOCK
                    PH plants accept all kinds of scrap tires, in-
                 cluding bias ply, radial and steel-belted radials.
                 Although the Spokane facility  has equipment to
                 shred and granulate tires to remove metal and
                 fiber, the plant will also accept  chipped tires from
                 tire processors.

                    The proposed facility is expected to consume
                 2.88 million tires per year.  Washingtonians dis-
                 card approximately 5 million tires per year, and
                 many more lie in stockpiles around the state. The
                 two plants in  Washington will consume all the
                 scrap tires produced in the state, and will also
                 draw as well from neighboring states.

                    The tipping fee for tire disposal in Washing-
                 ton ranges from $1.00 to $2.50  per tire.  PH will
                 charge $0 to $1 per tire at its Washington plants
                 (Table 87).
                 PROCESS
                    The reduction of discarded rubber to its basic
                 elements (oil, carbon black and gasses) by pyroly-
100
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises

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                                                                                     -RUBBER
  Table 87  Feedstock Information
             consumption
     material         TRY

   scrap tires    28,800 [a]
recycled   post-consumer
 content          content
            price
         paid/ton
   100%
100%    -$100-0
  [a] Assuming each tire weighs 20 pounds.
sis — a thermal process conducted in the absence
of oxygen — is not a new concept.  The process
has been studied for many years and many varia-
tions have been proposed.   But thus far, the
resulting  products
have  been  of low
quality, and the tech-
nology   has   not
proven economically
feasible.   At present,
there are no full-scale,
commercially viable
scrap-tire pyrolysis fa-
                              accounts for approximately 8
                              percent of the feedstock, is re-
                              covered and sold to recyclers.
                              The ground rubber is intro-
                              duced to  a  reactor, where the
                              pyrolyptic/gasification process
                              converts  it into an oil-laden
                              gas.  This mixture is fed into
                              a condenser that separates the
	     oil from the gas.
Source: Institute for Local Self-Rellance. 1992.
                                 Ash,  produced as a by-
            product of the pyrolyptic/gasification process, is
            the only waste product of the process.  Accord-
            ing to its developers, the process does not pro-
            duce any emissions or impact the environment.
cilities in the U.S.

    According to its
developers,     the
Tyrecycle® process is
not pyrolysis,  but
rather a "pyrolyptic/
gasification system."
The operating tem-
perature   in   the
Tyrecycle® process is
low compared  to py-
rolysis, and  unlike
pyrolysis, it produces
no  carbon   black.
Tyrecycle® produces
cross-linked polymers
that are suspended in
oil.

    As whole tires
arrive at the  plant,
workers  first  run
them through conven-
tional   shredding
equipment.     The
shredded tires are
then  granulated  to
remove metal  and  fi-
bers.   Metal,  which
  Table 88    Process Information [aj
         recycling level:
     feedstock input rate:
   production output rate:
 production design capacity:


   capacity utilization factor.
    feedstock reject rate:
        waste generated:
       disposal methods:
             equipment:
           employment:
    scheduled operation:
       area requirement:
              plant size:
         warehouse size:


     energy requirement:
       water requirement:
        primary/tertiary (polymer oil/fuel gas)
        80TPD
        78TPD[b]
        8,000 gallons per day of polymer oil;
        12,000 therms per day of fuel gas;
        6 TPD of scrap metal
        100%
        3%
        ash
        landfill, seeking alternatives
        shredder, grinder, reactor, condenser
        24-27 full time; 13 skilled
        360 days per year; 20 hours per day
        5-6 acres
        11,000-16,000 square feet
        product storage included in plant size;
        scrap tires stored in open stockpiles

        2,340,000 kWh per year of electricity
        low
  [a] All information pertains to a two-module plant similar to the plants to be built in Washington.
  [b] ILSR estimate.
                                                                          Source: Institute for Local Self-Rellance. 1992.
 Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                                   101

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     •PROCESS FUELS, INC.
     PFI uses a modular system in its Tyrecycle®
 plants. A facility can have between one and four
 modules.  This system allows  plant operators to
 tailor a plant's production to fluctuations in sup-
 ply and demand. Each module has the  capacity
 to consume two tons of discarded  rubber per
 hour.

     A two-module plant  requires approximately
 234 million kWh per year of energy.  If a cogen-
 eration facility existed on site, this requirement
 could be met with less than 10 percent of the gas
 produced, meaning the facility could be energy
 self-sufficient (Table 88).
 PRODUCTS
    The two major products of the Tyrecycle®
 process are polymer oil—a rubber compounder—
 and fuel gas.  The polymer  oil, called Superflex
 2000®, represents 43 percent  of the output, while
 the fuel gas constitutes 46 percent of the output.
 Approximately 8 percent of the output is metals
 recovered  from the tires, and the remaining 3
 percent is  ash (Table 89).

    The polymer oil consists of organic com-
 pounds found in tire  rubber and degradation
 products thereof, as well as  the rubber polymer
 matrix itself.  This oil can  be used to  replace
 Hexon 766, a rubber extender/plasticizing agent
 used for manufacturing rubber. It can also find
                 markets in the plastic and adhesion industries, and
                 as a wet asphalt binder.

                     Researchers have also indicated the potential
                 for new markets for the oil due to certain unique
                 properties of this material. Tests conducted at the
                 Hauser Laboratories in  Boulder, Colorado have
                 concluded that when the PFI polymer oil is used
                 in the EPDM (ethylene-propylene diene monomer)
                 rubber-formulating process, the resulting rubber
                 has better  engineering  properties than rubber
                 made from virgin materials using the same pro-
                 cess.  Tensile strength  appears to  increase by
                 approximately 50 percent, and elongation by al-
                 most 100 percent. The new product also performs
                 well in  cold-weather applications.

                    PFI  expects major petrochemical companies
                 such as AMOCO, Shell, DOW Chemical, Quantum
                 and Formosa  Plastic Corporation to be the main
                 consumers of the polymer oil.

                    The gas, which has a high caloric value simi-
                 lar to natural gas,  can be used by cogeneration
                 plants and power plants. The estimated energy
                 content of the gas  is 950 to 1,000 Btu per  cubic
                 foot.

                    PFI estimates the polymer oil will sell for $2.00
                 to $3.50 per gallon. When  the fuel  gas is used
                 to produce  electricity, its value will  be approxi-
                 mately $1 per tire.  The metal is worth about $50
                 per ton.  The company  expects to earn a  gross
                 revenue of  $3.25 to $4.00 per tire.
   Table 89  Product Information
products
manufactured production rate
polymer oil 2,880,000 gallons per year
fuel gas 4,320,000 therms per year
scrap metal 2,300 TPY
total 27,936 TPY
total
recycled
content
100%.
100%
100%
100%
post-
consumer
content
100%
100%
100%
100%
estimated
annual
sales
$6,000,000
$3,000,000 [a]
$115,000
$9,115,000
gross
revenue
per ton
NA
NA
NA
$330 [b]
value
added
per ton
NA
NA
NA
$320 [b]
[a] Assuming a small cogeneration plant for internal power use (96 percent efficiency) and a commercial cogeneration facility with 60
percent efficiency.
[b] Assuming a lipping fee of $0.50 per tire.
                                                                        Source: Institute for Local Self-Reliance, 1992.
102
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                    - RUBBER
  Table 90:  Economic Information [a)
     initial capital cost:
            labor cost:
          energy cost:
       feedstock cost:
       total O&M cost:
       gross revenue:
  capital cost/capacity:
      O&M cost/sales:
  gross revenue/sales:
$7,500,000 (1993)

$720,000 per year
$0[b]

- $1,440,000 per year [c]

$3,300,000 per year

$9,115,000 per year

$96,000 per TPD capacity

$120 per ton sold

$330 per ton sold
  [a] Including forecasts.
  [b] Energy cost is zero because all of the necessary energy will be
    provided by the in-house Degeneration plant.
  [c] Assuming a charge of $0.50 per tire at the plant.
                               Source: Institute for Local Self-Reliance, 1992.
    According to PFI, a four-module
plant can be built in one year, and a
one-module plant  can be operable
within six months.  The management
of PFI is confident that the investment
on a Tyrecyde® plant can be recovered
within three years of starting the op-
eration.
REPLICABILITY
     After spending over $1.5 million
in  developing  and  testing  the
Tyrecycle® process, then designing a
commercial plant, the company is now
prepared to market  the  results.  PFI
will license its technology to separate
corporations, or will consider entering
partnerships.  The tire-shredding  and
cogeneration technologies are available
in the  open market.
ECONOMICS
   The initial capital cost for a plant that uses the
Tyrecycle® process will range from $3.5 million
to $15 million, depending on the number of
modules in the plant and the location.  The
Spokane facility is expected to cost approximately
$7.5  million, of which $2.5 million  is for the
commercial cogeneration facility.  The estimated
annual operating cost for the plant is $3.3 million
(Table  90).
                            CONTACTS
                            Joseph H. Munger, President
                            Process Fuels, Inc.
                            East 1817 Springfield
                            Spokane, Washington  99202
                            509-534-6939
                            509-535-7244 fox
Manufacturing from Recydables: 24 Case Studies of Successful Enterprises
                                                                     103

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EVANITE FIBER  CORPORATION
                     Location:

                 Start-up Date:

        Recycled Material Used:


                     Products:

     Production Design Capacity:
Corvallis, Oregon

1942 (started accepting scrap in 1968)

wood chips from pallets, shakes and utility spools
industrial plywood scrap
hardboard

120 TPD
COMPANY BACKGROUND
    In the 1940s, Chapman Brothers, a hardboard
manufacturer, set forth to manufacture products
from the abundant timber resources of the Pacific
Northwest.  As the availability of timber shrank
and urban areas around Corvallis expanded, the
company adapted by switching to discarded wood
to make its hardboard. In the 1970s, the company,
now part of the Evanite Fiber Corporation, began
using ply-trim, a by-product of plywood produc-
tion. In 1991, the company began accepting wood
waste from the Portland, Oregon waste stream,
and it plans to continue increasing the amount of
discarded wood it uses.

    The switch to an urban feedstock source was
the direct result of dwindling production of ply-
wood in the Pacific Northwest.   In December
1990, Evanite's supply of feedstock dropped dra-
matically as six of its eight ply-trim  suppliers
closed (ply-trim was  Evanite's major feedstock).
In a search for an alternative feedstock, the com-
pany formed a partnership  with Bilet  Products,
Inc. (Portland, Oregon), and founded Wood  Ex-
change, a business devoted to collecting and
processing  urban wood waste — specifically
wooden shipping pallets — into wood chips.
Wood Exchange now supplies these chips to
Evanite.
                    The company has been operating at capacity
                for two years, while many other Pacific-Northwest
                manufacturers have been hurt by both a dwin-
                dling supply of lumber, and soft demand for
                construction materials. Its success contradicts the
                myth that a decline in natural-resource extraction
                means lost manufacturing jobs. The company has
                shown that hardboard manufacturers can success-
                fully replace virgin resources with wood waste
                generated in urban areas.
                FEEDSTOCK
                   Evanite's hardboard product currently con-
                tains 48 percent urban wood waste, 45 percent
                ply-trim, and 5 percent virgin wood chips (Table
                91).  Additional  inputs are wax and resin bind-
                ers. Evanite receives approximately 65 percent of
                its urban wood  fiber from Wood Exchange, a
                pallet refurbisher and scrap wood processor which
                produces wood chips from shipping pallets,
                shakes and utility spools from the Portland area
                (see side bar, page 138).

                   High levels of grit in the wood waste have
                increased wear on machinery, limiting recycled
                content to the current level.  However, Evanite is
104
 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                                     WOOD
  Table 91  Feedstock Information
consumption
material
urban wood waste
ply-trim
virgin wood chips
wax
resin
total
(TPY)
21,000
19,500
2,400
1,025
950
44,875
recycled post-consumer
content
100%
100%
0%
0%
0%
90%
content
100%
0%
0%
0%
0%
48%
price
paid/ton
$35-45
$35-45
$75-95
$300-400
$250-350
$48-62
                                              Source: Institute for Local Self-Rellance, 1992.
                                            given  a  final  wax
                                            spray, trimmed, and
                                            placed in a large press
                                            at 400° F to extract the
                                            remaining moisture.
                                            When   the   board
                                            emerges  from  the
                                            press,  the surface is
                                            sprayed with water to
                                            raise  the moisture
                                            level from zero to ap-
                                            proximately four per-
                                            cent to ensure it does
                                            not  swell or buckle
                                            during use.
developing machinery  to clean incoming wood
chips, thus reducing machinery wear.  The com-
pany believes this will allow it to use 100 per-
cent urban wood waste.
Evanite screens ply-trim
to  remove oversized
                       Evanite removes approximately four percent
                    of the feedstock as contamination.  Heavy con-
                    taminants are caught by string traps in the pipes
pieces.
PROCESS
      Ply-trim,   urban
wood chips &  virgin
wood chips are com-
bined and run through a
digester that steams the
wood under pressure.
The wet material runs
through a series of disc
refiners, also known as
defibrators, which sepa-
rate the individual fibers.
After resin and  wax
binders are added, the
resulting slurry proceeds
to the forming line.

    Evanite  forms hard-
board on a continuous
conveyor.  A  head box
lays a thick mat of fiber
slurry on the conveyor.
As the mat progresses
down  the  conveyer,
vacuums  and  rolling
presses extract  much of
the water.  The board is
Table 92   Process Information
        recycling level:
    feedstock input rate:
  production output rate:
 production design capacity:
  capacity utilization factor:
   feedstock reject rate:
      waste generated:
      disposal methods:
           equipment:
          employment:
   scheduled operation:
      area requirement:
             plant size:
       warehouse size:
    energy requirement:
     water requirement:
secondary
125TPD
120TPD
120 TPD
100%
4%
oversized ply-trim, waste effluent
ply-trim is landfilled or sold as fuel
shaker, 2 cyclones, digester, 2 disc
refiners, vacuums, rollers, conveyors,
2 presses, humidifier
90 full time; 90 skilled
360 days per year
10 acres
NA
NA
4,000,000 therms per year of natural gas
250,000 gallons per day
                                                                        Source: Institute for Local Sell-Reliance, 1992.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                             105

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     -EVANITE FIBER CORPORATION -
   Table 93  Product Information
production total post- estimated gross value
products rate recycled consumer annual revenue added
manufactured (TPY) content content sales per ton per ton
hardboard 43,000 90%
48% $12,000,000 $280 $230
                                                                         Source: Institute for Local Self-Reliance, 1992.
 and riffles in the headbox, while fine fibers are
 removed in the wastewater treatment system. The
 Evanite process uses 250,000 gallons of water per
 day. Evanite employs 90 full-time workers.  On
 average, workers make $11.00 per hour plus an
 estimated $3.85 per hour in benefits (Table 92).
                     In 1991, Evanite invested $500,000 in a joint
                 venture to start Wood Exchange. Wood Exchange
                 sends 90 percent of its hogged wood to the
                 Corvallis facility, charging between $30  and $40
                 per ton.
 PRODUCTS
    Evanite manufactures
 hardboard, a low-cost con-
 struction material used as
 paneling and pegboard.
 Hardboard comes in two
 thicknesses, 1/4  inch and
 1/8 inch, and in a variety of
 finishes. Evanite sells the
 board for an average of $100
 per thousand board feet,
 whfch translates to $300 per
 ton (Table 93).
 ECONOMICS
    A dramatic rise in land-
 fin tipping fees in the Port-
 land area (from $5 per ton in
 1985 to $62 per ton by 1991)
 has motivated  generators of
 wood waste to seek alterna-
 tive disposal methods. Port-
 land General  Electric, for
 example, saves $75,000 per
 year in avoided landfill fees
 by delivering 24  to 30 tons
 per week of spent utility
 spools to Wood Exchange
 (Table 94).
WOOD EXCHANGE
         location:

        feedstock:


         products:


production capacity:

 initial capital cost:

     gross revenue:

      employment:
                    Portland, Oregon

                    urban wood waste —wooden pallets,
                    shakes, and utility spools (80 TPD)
                    refurbished pallets (8 TPD) wood chips
                    (72TPPL   ^   „   „,  ,,„
                  f      v. KM ; HW! -M \ *WWA mWA i «H \ 4    < •>   ""
                             •"  WPK -H&  •" •" 1  £ 1 w. i  i ^
                    32,000 TPY (15 tons per hour)

                    $1,500,000 (1991)

                   ' $734,£)00 per year (estimate)
                     ,  s«r
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                                                                                        - WOOD
  Table 94   Economic Information
  initial capital cost:
         labor cost:
       energy cost:
    feedstock cost:
    total O&M cost:
    gross revenue:
 capital cost/capacity:
   O&M cost/sales:
 gross revenue/sales:
$30,000,000 [a]
$2,800,000 per year [b]
NA
$2,500,000 per year
$9,600,000 per year
$12,000,000 per year
$250,000 per TPD capacity
$220 per ton sold
$280 per ton sold
  [a] For a similar plant if built today.
  [b] ILSR estimate.
                    Source: Institute for Local Self-Reliance, 1992.
REPLICABILITY
    The Corvallis facility is fully replicable using stan-
dard technologies.  However, current environmental
regulations, and increasingly expensive wastewater
treatment would necessitate modifying the process to
use less water. Although the Corvallis facility is op-
erating at full capacity, current markets for hardboard
do not warrant a second or expanded operatioa Com-
pany estimates place the cost of a new plant at $30
million.
CONTACTS
William Munk, Plant Manager
Evanite Fiber Corporation, Hardboard Div.
1185 Crystal Lake Drive
P.O. Box E
Corvallis, Oregon  97339
503-753-0321
503-753-0336 fox
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
                                                                          107

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 CASE  STUDY REFERENCES
    The bulk of the information presented in the case studies was obtained through survey forms, plant visits,
 company literature and personal communication with company representatives. The references cited below
 were used to supplement those sources.

 CYCLEAN, INC./LOS ANGELES BUREAU OF STREET MAINTENANCE
 Howard, Patrick D. and David A. Reed, "Microwave Recycling of Reclaimed Asphalt Pavement," Public
 Works, October 1989, pages 53-55.
 "Recycled Asphalt Pavement of the City of Los Angeles' Bureau of Street Maintenance," Environmental
 Success Index 1992, Renew America, 1992, page 94.
 Tuladhar, Bhushan, "Paving the Way: Using Scrap Materials in Pavement," Resource Recycling, November
 1992, pages 33-41.
 RECLAIM OF NEW JERSEY, INC.
 Environmental Success Index 1992, Renew America, 1992.
 Hodges, Dave, "Reclaim's Recycling Turns Asphalt Roofing Debris Into Road Patching and Paving Prod-
 ucts," Florida Specifier, Winter Park, Florida, January 1992, page 3.
 Kraft, John, "Business Should Create Markets," American City and County, February 1992, page 20.
 OPTIMUM ART GLASS, INC.
 Petrone, Melissa, "Recycling Glass is Clearly a Labor of Love," Colorado Energy Talk, September/October
 1990, page 1.
 Tlie Official Recycled Pro ducts Guide, Spring/Summer 1991, page P-23.
 OWENS-BROCKWAY
 "Preparation of Glass for Recycling," Owens-Brockway.
 Resource Recycling, November 1991, pages 91-92.
 Resource Recycling's Bottle/Can Recycling Update, May 1992, page 3.
 Scientific Certification Systems™, SCS Certified Materials Claims Bulletin, June 10,1992, page 4.
 Standard Corporation Descriptions: New and Revised Descriptions Section, August 29,1991, pages 8134-
 8136.

 STONEWARE TILE COMPANY
 Francesca, Garcia-Marques, "Arata Isozaki & Associates Have Designed an Office Building for Disney that
 Probes the Question of Time/' Progressive Architecture, April 1991, pages 2-10.
108
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                  -CASE STUDY REFERENCES
 AMG RESOURCES CORPORATION
 "AMG's Patented Steel Can Preparation & Detinning Process at St. Paul, Minn.," video, AMG Resources
 Corporation, 1990.
 "Bringing Recycling to New York State: De-tinning the AMG Way," The Market: A Report on Recycling
 Markets in and Around New York State, April 1991, page 1.
 AMERICAN CELLULOSE MANUFACTURING, INC.
 Combs, Susan, "Old Newspapers, Phone Books Can Be Used to Absorb Oil Spills," Waste Age's Recycling
 Times, May 19,1992, page 8.
 AMERICAN ENVIRONMENTAL PRODUCTS, INC.
 Yarbrough, David W., and Ronald S. Graves, "A Review of MIMA Insulation Facts no. 14 - Spray and Wet-
 Blown Insulation Systems," Oak Ridge National Laboratory, Oak Ridge, Tennessee, June 1989.
 "1990 Cellulose Industry Study," In-Cide Technologies, Phoenix, Arizona, February 1991.

 THE CHESAPEAKE PAPER BOARD COMPANY
 1992 Lockwood-Posfs Directory of the Pulp, Paper and Allied Trades, Miller Freeman Publications, 1991,
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 GARDEN STATE PAPER, INC.
 Hertzberg, Richard, "Old News is Good News at Garden State Paper," Resource Recycling, July/August 1985.
 Holusha, John, "Old Newspapers Hit a Logjam," The New York Times, September 10,1989.
 "Media General Annual Report 1991," Media General, Inc., 1991.
 1992 Lockwood-Post's Directory of the Pulp, Paper and Allied Trades, Miller Freeman Publications, 1991,
 page 95.
 >

 HOMASOTE COMPANY
 Waite, Jr., Amory H., Radio Engineer, Byrd Antarctic Expedition II, letter to Homasote Company, October
 22,1947.


 MARCAL PAPER MILLS, INC.
 Kennedy, Nancy, "The Paper Chase," Business Journal of New Jersey, January 1992, pages 20-23.
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 1992, page 4.
 Prior, James T., "Marcal — Paper From Paper," New Jersey Business, February 1990, pages 14-15.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
109

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	CASE STUDY REFERENCES	

OHIO PULP MILLS, INC.
Ewing, Thomas, "Poor Secondary Fiber Prices Beat Carton Recycling to a Pulp," Waste Age's Recycling Times,
February 25,1992.
Kiser, Kent, "The Great Scrap Search," Scrap Processing and Recycling, November/December 1992, pages 60-64.
"Pilot Recycling Program for Polyethylene-Coated Cartons in Cincinnati," Solid Waste Management Newsletter,
Office of Technology Transfer, University of Illinois Center for Solid Waste Management and Research,
December 1991, page 3.
Rawe, Dick, "Milk Cartons Graduate to Recycling Program," Chicago Tribune, September 221991, Section 7,
page 9 A.
Rawe, Dick, "New Life for Paper Cartons," The Cincinnati Post, September 9,1991.
Watson, Tom, "Pulp and Paper Mini-Mills Recycle Without Fanfare," Resource Recycling, July 1989, pages 64-
65.
PAPER SERVICE LIMITED
Isaacs, Colin, "Industry Over Capacity Hits U.S. Recycling Plant," The Financial Post, Toronto Canada, January
10,1992.
"Recycled Paper Producer Faces Obstacles in Path to Success," American Papermaker, March 1990, page 21.
SOMERSET FIBER/RECYCLING SYSTEMS CORPORATION
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November 1992, pages 67-70.
"Mini-Mill Uses OCC for Liner and Bag Production," Resource Recycling, April 1992, page 33.
White, Kathleen M., "Australian Paper Co. to Open Recycled Board Mill in N.M.," Waste Age's Recycling
Times, November 3,1992, page 8.
COON MANUFACTURING
Coon Manufacturing, Coon Manufacturing Business Plan for a Plastic Recycling and Remanufacturing
Operation, 1992.

LANDFILL ALTERNATIVES, INC.
Dolco Packaging Corp., 2991 Annual Report, March 26,1992.
Plastic News, May 18,1992, page 23.
World Wastes, July 1991, page 22.
110                                Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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                                                                      CASE STUDY REFERENCES -
 POLY-ANNA PLASTIC PRODUCTS, INC.
 Bruening, John C, "Midwest Voice of Change," Recycling Today, January 15,1992, pages 40-43,89,93.
 Meade, Kathleen, "Poly-Anna Discovers that All Recycled Plastic Isn't Perfect," Waste Age's Recvclim Times,
 April 21,1992, page 16.

 TURTLE PLASTICS COMPANY
 Brandt, John R., "Recycling Misfortune," Corporate Cleveland, January 1992, pages 28-31,56-57.
 Norton, Tom, President, Turtle Plastics Company, "Marketing Recycled Plastics," Plastics Recycling as a Future
 Business Opportunity, proceedings of the Technology Exchange Program of the Plastics Institute of America,
 Washington, DC, June 20,1986.

 WEBSTER INDUSTRIES
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 Vannah, Thomas, "Recycling Firm Enjoying Fruits of its Foresight," The Boston Globe, December 23,1990.
 "Webster Industries Remains at the Head of Innovations in the Manufacturing Market," The Griffin Report of
 Food Marketing, August 1991, page 27.  .. •

 AQUAPORE MOISTURE SYSTEMS
 Guffey, Mary Ellen, 'The Liberated Flower Gardener," Flower & Garden, April 1990, page 49.
 Scientific Certification Systems™, "Certified Products Claims Bulletin," September 1992, pages 2-4.
 "Turf's Up," Garden Product & Planning Guide, Better Homes and Gardens, 1991, page 35.

 PROCESS FUELS, INC.
 "The Tyrecycle Process®," Process Fuels, Inc., 1992.

 EVANITE FIBER CORPORATION
 De Monnin, Joyce, "When the chips are down.../' Corvallis Gazette-Times, Corvallis, Oregon, May 12,1991.
 Kadera, Jim, "Chips off old blocks," The Oregonian, April 17,1991.
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
111

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RESOURCES  REGARDING
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15. Gainer, Margaret, Small-Scale Manufacturing Profiles, Gainer & Associates, Arcata, California,
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112
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises

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 	——	—	RESOURCES	


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 17.  Guettler, Jay, "A Survey of State Market Development Activities," Resource Recycling, Septem-
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 18.  Henderson, J., "Recycling Market Development Zones: A Successful State Strategy," Resource
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 19.  Hildebrand, Celia, Engines of Recycling: Strategies for Using Recycling to Drive Community
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Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
113

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	RESOURCES	—	

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Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
115

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