Aluminum Recycling in the Aluminum Recycling in the 21st Century21st CenturyThe Municipal Waste Management AssociationThe Municipal Waste Management Association2002 Fall Summit2002 Fall SummitNovember 2002November 2002

Alcan Inc.Alcan Inc.

Global Leader in Aluminum and Packaging Solutions

Multi-cultural Organization Headquartered in Montreal, Canada

48,000 Employees and a Presence in 38 Countries

Company 2001 Revenues of U.S. $12.6 billion

No. 1 Global Producer and Marketer of Rolled Products

Western World’s 2nd Largest Producer of Primary Aluminum

World Leader in Recycling

Ranks among the Top 5 Manufacturers of Flexible and Specialty Packaging in the World

Alcan Worldwide PresenceAlcan Worldwide Presence

North AmericaSales & Operating Revenues = 5,183

Employees: 21,400

Europe Sales & Operating Revenues = 4,994

Employees: 23,100

South AmericaSales & Operating Revenues = 470

Employees: 2,900

Asia/Pacificand All OtherSales & Operating Revenues = 1,979

Employees: 4,400 *Reported for 2001 --in millions of US$, except where indicated

Georgia

Sheet

Light Gauge

Cable

Extrusions

Smelter

Packaging

Composites

Research & Development

Corporate/Divisional/Sales Offices

Atlanta, LaGrange

Greensboro

Peachtree City

IllinoisAuroraBellwood, Centralia, Des PlainesNorthbrook

IndianaTerre HauteWestportRichmond

KentuckyBerea, RussellvilleLouisvilleHendersonShelbyvilleBenton

Michigan

MississippiBay St. Louis

MissouriSedalia

New YorkOswego

New Hyde Park

Ohio Cleveland Warren

OregonRoseburg

Pennsylvania Williamsport

Bethlehem

West VirginiaFairmont

ArkansasRussellville

NebraskaSyracuse

New JerseyMillville, Jamesburg, Fairlawn

North CarolinaCharlotte, Youngsville

VirginiaChase City, Richmond

Alcan’s U.S. PresenceAlcan’s U.S. PresenceAlcan’s U.S. PresenceAlcan’s U.S. Presence Farmington Hills

8,500 Employees17 States38 Facilities

Millville

NA Plant Locations and UBC UsageNA Plant Locations and UBC Usage

Berea Facts:Built in 1989

107 EmployeesUBC Scrap. 2001 = 350 million lbs.Class Scrap 2001 = 56 million lbs.

Greensboro Facts:Acquired in 1980101 Employees

UBC Scrap 2001 = 176 million lbs.Class Scrap 2001 = 103 million lbs.

Oswego Facts:Built in 1995

26 EmployeesUBC Scrap 2001 = 201 million lbs.Class Scrap 2001 = 148 million lbs.

Aluminum Can Recycling Rates 2001Aluminum Can Recycling Rates 2001

85.0%82.8%

70.0%

55.4%

45.0%42.0%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Brazil Japan Canada US W/EU UK

Pe

rce

nt

15

20

25

30

35

40

45

50

55

60

65

70

90 91 92 93 94 95 96 97 98 99 2000 2001

Re

cy

clin

g R

ate

(%

)

PET Aluminum Glass

Source: NAPCOR, Packaging Strategies, GPI, CMI

U.S. Aluminum Can, Glass, & PET U.S. Aluminum Can, Glass, & PET Recycling Rate, 1990-2001Recycling Rate, 1990-2001

Aluminum has the highest recycling rate of any packaging material.

21.1%

55.4%

35%

Aluminum RecyclingAluminum Recycling

FACTSFACTS

BAUXITEEXTRACTION

ALUMINAREFINING

PRIMARYSMELTING

INGOTCASTING

FABRICATION

CANMANUFACTURING

SHREDDING

SORTING

REMELTING

RECYCLING

RETAIL

Life Cycle of the Aluminum CanLife Cycle of the Aluminum Can

Approximately 60 Days for the Aluminum Can to go from consumers hand through recycling and back to retail

60 DAYS

Aluminum’s Recycling AdvantagesAluminum’s Recycling Advantages

100%

5%

0%

20%

40%

60%

80%

100%

New Aluminum Recycled Aluminum

% o

f Ne

w M

eta

l En

erg

y R

equ

irem

ent

•Recycling only needs 5%of the energy.

•Recycling emits 95% lessgreenhouse gas emissions.

•Recycling only needs 5%of the energy.

•Recycling emits 95% lessgreenhouse gas emissions.

…an “Energy Bank”

Aluminum’s Recycling AdvantagesAluminum’s Recycling Advantages

100%

5%

0%

20%

40%

60%

80%

100%

New Aluminum Recycled Aluminum

% o

f Ne

w M

eta

l En

erg

y R

equ

irem

ent

•Recycling only needs 5%of the energy.

•Recycling emits 95% lessgreenhouse gas emissions.

•Recycling only needs 5%of the energy.

•Recycling emits 95% lessgreenhouse gas emissions.

…an “Energy Bank”

Aluminum Cans -- The FinancialAluminum Cans -- The FinancialEngine of Community RecyclingEngine of Community Recycling

47 36 8520

1102

0

200

400

600

800

1000

1200

Steel Cans Clear Glass Clear PET Newspaper AluminumCans

dolla

rs /

ton

Published industry reports

Value of Recycled Materials in U.S.A.

The Landscape: Is Green Gone?

Decline in recycling rates

Decline in public awareness about the benefits of recycling

Decline in recycling collection/buyback centers

Threat of decline in curbside recycling programs

“Decline” in value of a single can (inflation and lightweighting)

Can We Reverse the Trend?

Economics

Convenience

Education/Promotion

Re-energizing Recycling

Recycled aluminum an important source of metal for the aluminum industry

Aluminum Cans Build Habitat for Humanity Homes Sponsor

Leader in Recycling Promotion Campaign of the Aluminum Can Council

Educational Recycling Awareness Programs through local school systems - looking to expand

Providing educational material “fun facts” to recycling coordinators

Comments

What are the challenges you face? (budget/promotional $ cuts)

Is the value of aluminum of recognized?

Have you detected a decline in recycling rates, in beverage containers?

If so, why do you think there is a decline?

How do we encourage consumers/residents to recycle?

Is there discussion about GHG emission reductions through recycling?