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
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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
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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
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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
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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
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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
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-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
-------
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
,„„«,"
-------
-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
-------
-------
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
-------
-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
-------
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
-------
_
-------
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
-------
-------
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
-------
•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
-------
• 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
-------
-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
-------
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
-------
• 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
-------
. 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
-------
- 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
-------
• 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
-------
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
-------
- 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
-------
•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
-------
- 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
-------
- 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
-------
-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
-------
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
-------
-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
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-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
-------
-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
-------
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
-------
-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
-------
-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
-------
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
-------
•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
-------
- 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
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- 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
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-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
Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
-------
- 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
-------
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
-------
-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
-------
-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
-------
- 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
-------
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
-------
-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
-------
. 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
-------
-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
-------
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
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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
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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
-------
- 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,
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-CASE STUDY REFERENCES
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>
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CASE STUDY REFERENCES
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110 Manufacturing from Recyclables: 24 Case Studies of Successful Enterprises
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CASE STUDY REFERENCES -
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111
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