Development of a Strategic Plan for the Marketing of ... · Development of a Strategic Plan for the Marketing of Recyclable Materials in North Carolina Project Proiect Manaaement

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Development of a Strategic Plan for the Marketing of Recyclable Materials in North Carolina Project

Assessment of the Recyclable Materials Markets and Market System in North Carolina

Final Report

North Carolina Department of Economic and Community Development Energy Division

430 North Salisbury Street Raleigh, NC 2761 1

919/733-2230

Prepared by

The UNC Institute for Transportation Research and Education (ITRE) 1100 Navaho Drive, Suite 201

Raleigh, NC 27609 919/878-8080

and

Hazen and Sawyer, P.C. 401 1 WestChase Boulevard, Suite 500

Raleigh, NC 27607 9191833-7152

with

Mt. Auburn Associates 408 Highland Avenue, Suite 410

Somerville, MA 02144 6 171625-7770

April 1,1991

Printed on Recycled Paper

DISCLAIMER

Thisproject was sponsoredbytheEnergyDivision,NorthCarolinaDepartmentofEconomicandCommunity Development in cooperation with The University of North Carolina Institute for Transportation Research and Education (ITRE). However, any opinions, fmdings, conclusions or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the Energy Division, NC Department of Economic and Community Development. This report was prepared by ITRE and the subcontracting firm of Hazen and Sawyer, P.C. with assistance from the subcontracting firm of Mt. Aubum Associates. ITRE was provided with funds from the Energy Division, NC Department of Economic and Community Development (NCDECD). Any opinions, findings, conclusions, or recommendations expressed herein are those of the author(s) and do not necessarily represent findings, policies and procedures of ITRE or the University. ITRE has made every effort to make this report and the information contained herein as accurate as possible. Some information may have been changed since data were originally collected.

UNC-ITRE NC Recyding Market Development Strategic Plan Projed Page ii 4 /1M Recydable Materials Market Assessment R e p r l


Proiect Manaaement Team AI Ebron, Energy Division, NCDECD Larry W. Minor, ITRE Phillip Kemelor, ITRE Betsy Dorn, Hazen & Sawyer, P.C. Andrew Reamer, Ph.D., M t Auburn Associates

Proiect Review Committee Tom Allen, GDS Recycling Services, Inc. Paul Crissman, Solid Waste Management Division, NCDEHNR John Dorman, NC Department of Administration Anthony Doster, BusinessAndustry Development Division, NCDECD AI Ebron, Energy Division, NCDECD Butch Gunnels, NC Soft Drink Association Terry Henderson, NC League of Municipalities William Lane, NC Department of Economic and Community Development Steve Levetan, Resource Services Steve Levitas, NC Environmental Defense Fund Scott Mouw, Franklin County Government Mary Beth Powell, Office of Waste Reduction, NCDEHNR Richard Quinlan, Intemational Trade Division, NCDECD Ed Regan, NC Association of County Commissioners Bob Shepard, Land-of-Sky Council of Governments Jerry Williams, NC Restaurant Association

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ACKNOWLEDGMENTS

SPONSOR North Carolina Department of Economic and Community Development (NCDECD)

James T. Broyhill,, Secretary Mickey L. Hutchins, Deputy Secretary William F. Lane, Assistant Secretary Margot M. Flood, Assistant Secretary

Carson D. Culbreth, Director Jan Stanford, Chief, Conservation Section Tim Butler, Assistant Chief, Conservation Section AI Ebron, Local Government Specialist

Energy Division, NCDECD

CONTRACTOR The UNC Institute for Transportation Research and Education (ITRE)

Gorman Gilbert, Director Robert L. Martin, Associate Director and Project Director Larry W. Minor, Assistant Director and Project Manager Phillip Kemelor, Research Associate and Project Leader

Additional research assistance was provided by Jason Sardina, Jennifer Hayes, Bettie Rabb and Robin Brown. Editorial review and assistance were provided by Katie McDermott. Administrative and research support was provided by Pam Minschew and Anne Lapierre. Cartographic support was provided by Carol Hanchette. Data management and programming support were provided by Mary Beth Tsai and Bruce Kluckman. Additional administrative support was provided by Rosalie Neville and Joanne Kemp.

P Hazen and Sawyer, P.C.

Robert DiFiore, Vice-president Betsy Dorn, Director, Solid Waste Services and Subcontract Manager

Additional research and review assistance were provided by Michael Talbert, Cindy Salter, Tiffany Wilmot LeBleu, Chris Meline. Grace Johns, Ph.D. and Philip Prete. Administrative assistance was provided by Evelynne Rash.

Andrew Reamer, Ph.D., Principal and Subcontract Manager M t Aubum Associates

Additional editorial review and assistance were provided by Jim Oliver, Agribusiness Advisor, NCDECD.

A special thanks to AI Ebron. Energy Division, Betsy Dorn. Hazen and Sawyer,P.C., and Andrew Reamer, M t Auburn Associates for their excellent feedback, guidance, and support throughout this project. Special thanks to the Office of Waste Reduction for its cooperation that enabled this project to use the OWR Recycler Directory Database.

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Table of Contents PREFACE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-1

1.0 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1-4

2.0 RECYCLABLE MATERIAL MARKET SYSTEM . . . . . . . . . . . . . . . . . . . 2-1 - 2.1 Market System Concepts and Terms . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-1 2.2 Recycling Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3

2.2.1 Information Sources . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 2.2.2 Definition of Recycling Businesses . . . . . . . . . . . . . . . . . . . . . . . . . 2-3 2.2.3 Classification . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4 2.2.4 Recycling Business Statistics . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-4

2.3 The Assessment of Current Market Development Initiatives . . . . . . . . . . . . . . . 2-5 2.3.1 Assessment Tools . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-5 2.3.2 Definition of Market Development Initiatives . . . . . . . . . . . . . . . . . . . . 2-5 2.3.3 NC State Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-6 2.3.4 NCLocal Government . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-8 2.3.5 The University of North Carolina System . . . . . . . . . . . . . . . . . . . . . . 2-8 2.3.6 Trade and Professional Associations . . . . . . . . . . . . . . . . . . . . . . . . 2-9 2.3.7 Market Development in States Adjacent to North Carolina . . . . . . . . . . . . . 2-9 2.3.8 Out-of-state Market Development . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 2.3.9 FederalGovemment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-10 2.3. looverseas Market and Technological Developments . . . . . . . . . . . . . . . 2-11

2.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2-11

3.0 RECYCLABLE MATERIALS MARKETS . . . . . . . . . . . . . . . . . . . . . . . 3-1 3.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-1 3.2 Paper . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

3.2.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2 3.2.2 Marketstructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-2

3.2.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-9 3.3 Glass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-25

3.3.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-25 3.3.2 Market Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-25 3.3.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-26 3.3.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-28

3.4 Metals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36 3.4.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36 3.4.2 Marketstructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-36

3.2.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-7

3.4.3 Markets Serving N o d Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-42 - 3.4.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-43

3.5 Plastics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-57 3.5.1 Description 3-57 3.5.2 Market Structure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-57 3.5.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-61 3.5.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-62

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3.6 Rubber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-71 3.6.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-71 3.6.2 MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-71

3.6.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-74 3.7 Biomass . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-82

3.7.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-82 3.7.2 MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-82 3.7.3 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-84

3.8 Petroleum . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-88 3.8.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-88 3.8.2 MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-88 3.8.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-89 3.8.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-91

3.9 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-98 3.9.1 Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-98 3.9.2 MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-99 3.9.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-100 3.9.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-100

3.10 Textiles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-104 3.10.1 Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-104 3.10.2MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-104

3.10.4 Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3- 106 3.11 Chemicals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-112

3.11.1Description . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-112 3.11.2MarketStructure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-112 3.1 1.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-114 3.11.4Conclusion . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3-115

4.0 OVERALL MARKET DEVELOPMENT NEEDS AND ISSUES . . . . . . . . . . . . . . . 4-1 4.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-1 4.2 Ensuring a Regional Materials Supply System . . . . . . . . . . . . . . . . . . . . . . . 4-1 4.3 Ensuring High Quantity and Quality Material Supply to End Users . . . . . . . . . . . . 4-2

4.3.1 Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2 4.3.2 Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-2

3.6.3 Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-73

3.10.3Markets Serving North Carolina . . . . . . . . . . . . . . . . . . . . . . . . . . 3-104

4.3.3 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3 4.4 Creating Markets For Recyclable Materials . . . . . . . . . . . . . . . . . . . . . . . . 4-3

4.4.1 Increasing End-User Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4-3 4.4.2 Increasing End-User Product Demand . . . . . . . . . . . . . . . . . . . . . . . . 4 4

5.0 IhPACT OF CURRENT INITIATIVES ON NEEDS AND ISSUES . . . . . . . . . . . . . 5-1 5.1 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-1

5.3 Ensuring High Quantity and High Quality Material Supply to End Users . . . . . . . . . 5-3 5.3.1 Recovery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-3

5.2 Ensuring aRegional Material Supply System . . . . . . . . . . . . . . . . . . . . . . . 5-2

5.3.2 Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4 5.3.3 Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 4

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5.4 Creating Markets forRecyclable Materials . . . . . . . . . . . . . . . . . . . . . . . . . 5-5 5.4.1 Increasing End-User Demand . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-5 5.4.2 Increasing End-User Product Demand. . . . . . . . . . . . . . . . . . . . . . . . 5-6

5.5 Management of the Market Development Process . . . . . . . . . . . . . . . . . . . . . 5-6 5.6

Material Markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5-7

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Ensuring Funding for the Development of Material Market Systems and ~~

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . - 6.0 AGENDAFORACTION. 6-1

7.0 SUMMARY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7-1

APPENDICES Appendix A: A Discussion of the Terms: Markets, Marketing, Marketable, Marketability Appendix B: End Users Serving North Carolina Appendix C: Recyclable Material Tonnage Estimates Appendix D: Economic Overview of Recycling MarkeVMarket Prices for Recyclables Appendix E: Source List

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PREFACE ~

This report, the Assessment of the Recyclable Materials Markets andMarketSystem in North Carolina is submitted by the North Carolina Department of Economic and Community Development (NCDECD) to the General Assembly in fulfillment of Section 130A-309.14(c) of Senate Bill 111. This section requires the department to assess the recycling industry and recyclable markets in the state every other year.

The General Assembly also requires the NCDECD to prepare a report reviewing the potential materials, methods and markets for compost per Section 130A-309.14(e). This responsibility is met by this report’s companion, the Technical and Market Development Analysis for Compost Materials in North Carolina.

Finally,theGeneralAssemblyrequirestheNCDECDto identify and analyzethestate’srecyclingindustry,markets for recyclable materials in North Carolina, other states and foreign countries, and the availability and benefits of using recycled materials in manufacturing. The department is charged with distributing to the public and private sectors any materials prepared during the development of this information.

Recognizing the critical importance of market development for success of the state’s recycling program, the NCDECD authorized the Energy Division to prepare a strategic plan for developing markets for recyclable materials. The aim of the forthcoming plan will be to create an ongoing process of coordinated and proactive market development, involving state agencies, local government, recycling businesses and their respective trade associations and other key players.

This report is a crucial step in the Development of a Strategic Plan for the Marketing of Recyclable Materials in North Carolina Project (the Strategic Plan). The information provided by this report concerning the strengths. weaknesses, issues and opportunities in the materials markets and market system can be used to guide the decision making of government, private businesses and other interested parties.

There are three key phases to the Strategic Plan project. Their relationships are illustrated in Figure 1.1. The deliverable components of each phase are summarized below:

1) The Assessment of the RecyclableMaterials Markets andMarketSystem in North Carolina contributes the information and analysis upon which the Strategic Plan will be based. This document is the sum of three sets of findings: a) an assessment of current and planned market development initiatives in North Carolina. the United States and overseas, b) a profile of recycling businesses and recyclable materials in North Carolina and c) an analysis of markets and market systems for ten major categories of recyclable materials.

These findings were drawn from a comprehensive review of trade literature, market development studies, technical reports, legislation, market analyses and the results of over 400 surveys and interviews conducted by UNC-ITFE of representatives from public and private sector entities.

Both the assessment of current market development initiatives and the profile of recycling businesses and recyclable materials of North Carolina have been compiled into documents called working papers. Limited copies of the working papers are available for those interested in a more detailed look at these subjects.

2) TheStrategicPlan willconveyrecommendationsforthecreationofadynamicand coordinatedmarket development process. The recommendations will be based on an analysis of the issues and concem raised in the Assessment of the Recyclable Materials Markets and Market System in North Carolina and technical and market development analyses for: a) compost materials in North Carolina and b) nine problematic recyclable materials.

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3 ) EducationalMaterials and Workshops will communicate the findings, analysis and recommendations that have been developed during the Straregic Plan project. This information will be packaged for distribution to local govemment officials and interested parties through workshops, audio/visual presentations and publications.

the University of North Carolina Institute for Transportation Research and Education with assistance from Hazen & Sawyer, P.C., of Raleigh, N C Mt. Aubum Associates of Somewille, MA; and E&A Environmental Consultants, Inc., of Cary, NC.

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The SnategicPIan project is managed by the NCDECD's Energy Division. It is being developed by ~~

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Figure 1 .I


Project Flow Chart

Market Development Market Development

Recyclable Materials

Current Initiatives I Profile of Recycling Businesses and

Recyclable Materials in NC

Analysis of Ten Major Categories of I Recyclable Materials

1 I

1 .O INTRODUCTION ~

The purpose of this report is to assess the relative strengths and weaknesses of the recyclable material markets and market system in North Carolina, identify market development issues and gauge the effectiveness of current NC initiatives in addressing these issues. The conclusions from this report create the framework for the development of the strategic plan.

As can be seen in Figure 1.2, the building blocks of the report are Sections 2 and 3. Section 2 includes a description of the material market system and explains the roles and relationships that exist among the key players and institutions. The report summarizes current and planned market development initiatives occurring in North Carolina and national trade and professional associations, the federal govemment, states across the nation and foreign countries. Section 3 analyzes the health and stability of the ten major recyclable materials as categorized by the Office of Waste Reduction Recycler Directory Database (OWR Recycler Database). Please note that in most cases, figures and references are given at the end of each section.

Section 4 synthesizes common and specific material needs and issues from the Section 3 analyses. Section 5 is essentially an overlay of Section 2 over Section 4. It is here that current NC initiatives are evaluated to understand their effectiveness in addressing the market developmentneeds raised in Section4. Initiatives currently undertaken by other states and countries, as well as trade associations, are recommended in this section with the suggestion that they may have the potential to be studied and customized in order to address NC needs. In Section 6, the agenda for action discusses the methodology and structure for how the gaps between issues and current initiatives raised in Section 5 can be addressed in the strategic plan.

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Figure 1.2

The Assessment of the Recyclable Materials Markets and Market System in North Carolina

Report Flow Chart

Recyclable Materlal Market System

I * Roles of Participants I * Current and Planned Initiatives

I

Recyclable Material Markets

I - Market Condition I Market Structure

Needs and Issues

I , I -1 ; Cross Material I Specific Material Sense of Importance

Impact of Current Inilialives on Needs and Issues

I * Assess Effectiveness I Agenda for Action

- What Needs to be Done Strategic Plan Structure I

1 I I ' I

2.0 RECYCLABLE MATERIAL MARKET SYSTEM

This section of the report describes the recyclable material market system. The market system includes both recycling businesses and other market-influencing and supporting organizations. Also provided in this section is a discussion of important market system concepts and terms. -

2.1 MARKET SYSTEM CONCEPTS AND TERMS Selected market system concepts and terms that are critical to the reader's understanding of the contents of this report are discussed in the following paragraphs. In particular, the terms marker, markering, marketability and market developmenr are defined. The discussion of the first three terms has been adapted from a paper entitled "Markets, Marketing, Marketable, Marketability," by Steven Levetan. a well-known recycling industry consultant from Resource Services of Atlanta, GA. (A copy of this paper is included in Appendix A,)

Marker. Several difficulties emerge in attempting to define the term marker when discussing recovered materials. For example, the market can be defined in terms of activity (Le., trade for a particular recyclable material), as a geographic area (i t . , a recycling business service area) or as a need for recyclable materials (Le.. the quantities and quality wanted by an end user). Also, our perception of market and, consequently, how we def ie it is influenced by our position or responsibility relative to the market (e.g.. material generator, end user, etc.). For example, for commodities other than recyclable materials. products typically are offered for sale by relatively few producers to many users. Products flow from producers. through wholesalers (dealersbrokers), to retailers and ultimately to the consumers of those products. With recyclable materials, this process is reversed. Many producers exist 0fte.n as individuals generating relatively small quantities of materials which then flow "backwards" through retailers and wholesalers to a relatively small number of ultimate users of those materials. So in the product marketing model, we, the individuals, are the ultimate marker, however, in the case of the recovered materials marketing model, we reverse roles and become the markerers (producers).

Marketing. With regard to recyclable materials, marketing is "the act or process of transferring, selling, and/or purchasing a recyclable material.'' It involves bringing togetherthe buyers (or acceptors) and sellers (or providers) of recyclable materials. In this case, a recyclable material is considered markered when ownership or title to the material changes hands. And the marker, therefore, is the opportunity for that change in title to occur. From the seller or generator's perspective, the materials have been markered at the point at which the title to the materials changes (or the contractual obligation for materials changes in title).

Markerabilify. The term markerability can be defined as the "attractiveness of the material in the marketplace." Attractiveness inthemarketmay beaffected byprice,qualityorconsistency ofthematerialsupply. When supplies increase faster than demand, successful marketing of one's material (Le., enhanced marketability) may result in the displacement of a neighbor's material. A material is markerable when it is capable of being accepted by a market. While it is desirable to receive the greatest value possible for a material, marketability is not necessarily

MarkerDevelopmenr. The term marker development can be defied as taking action to create new markets and to expand existing markets for recyclable materials which are stable over the long term. Market development must be distinguished from marketing. Market development does not involve the actual buying and selling of NC's recyclable materials, but rather the promotion of demand for these materials. This action can be achieved through stimulating demand for products that contain recycled content: the substitution of recyclable materials for virgin, the creation of new products with recycled content; and the creation of new firms which process or manufacture their products with recyclable materials.

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The market then may vary based on the types of recycling programs and the perspectives of those involved. To observe these variations more concretely, let us first consider the private drop-offscenario. From the generator’s perspective, once a recyclable material is dropped off, it may be considered as having been marketed. However, in actuality, while title has changed (from the producer’s vantage the material has been marketed), responsibility for further marketing has been lransferred to the operator of the drop-off center. If the drop-off location is privately

responsibilityformarketing, and thesematerials canalsobeviewed (again by the public sector) as beingmarketed. In this case, the private operator must further market the material. On the other hand, if the drop-off location is publicly operated, then from the public sector perspective, these same materials have only been collected and must now be marketed.

The same is the case for a processing facility. Such a facility may be operated as a public/private partnership which, by contract. accepts and takes title to materials when delivered (after passage of an initial inspection). In the processing faciliry scenario, a fee per ton may be paid to the processor for his services, with a credit based on the current market value of the materials delivered. The market may thus be viewed as the “front door“ of the facility. If, however, the processor acts as an agent of the local government, processing material for a fee and then marketing the material (again a fee may be involved) as an agent of the govemment without taking ownership (or if the facility is publicly owned and operated), then it is the “back door” rather than the ”front door” where the materials become marketed. In any case, risk is assumed to varying degrees by various parties, and the marketplace assigns a value to that risk. From the local vantage point, the market may be purely local and subject only to local factors such as facility capacity and contractual arrangements. It must be recognized, however, that in any case, while the materials may no longer be owned by the generators or local government (Le., title has changed hands) the material has not yet completed the recycling process. The goal of keeping that material out of the local landfii may have been achieved for the short term; however, if the material is not successfully marketed, it may end up in the landfa eventually.

From the perspective of recycling businesses, the market is not the curb. drop-off location or processing facility (i t . . the initial change in title or ownership); it is the actual facility where a given material is utilized as a raw material in the production of a finished product, or reused for a beneficial purpose -- the proverbial ”closing ofrhe 1oop”scenario. Recyclable material markets such as these can be located in or outside North Carolina and can be regional, national and intemational in scope. (It is important to note that this finished product may not be a “consumer product,” but rather a product which is used as a raw material in the production of another product, such as newsprint from old newspapers, which then becomes a raw material in the production of a newspaper by a publisher.)

Three important elements must be in place for end-use markets to exist. First, there must be an adequate supply of raw mhterials. Second, the physical capacity, or capital equipment, must be in place to convert those raw materials into a finished product. And finally. there must exist the ability to profitably sell that finished product. AU three elements must exist and be in balance for the market to sustain itself. Price or value to the seller is not a criterion which can be used to determine if a material has been marketed. Costs of recovery, processing and transportation versus the value of a recovered material delivered to a consumer of that material may result in a ”sales” price which is negative.

The long term success of local markets (hence, local recycling programs) is dependent upon end-use markets. If the local market is characterized in the short run by an inelastic supply and a limited or constrained demand, it should be remembered that, in this situation, one seller benefits from another seller’s loss.

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operated, with no public sector involvement (such as a boy scout or church paper drive), there is no public sector ~~

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Government is constrained by the fact that its product (Le.. recovered materials generated as a result of programs, policies. or mandates aimed at reducing solid waste disposal, rather than for making a profit) is not sensitive to variations in value or. at least, is highly insensitive. The supply of this material is, therefore, highly inelastic. When the demand for motor vehicles decreases, General Motors can reduce production. Government, however, does not have this luxury when collecting recovered materials from the public. Production cannot be cut by scheduling changes or the closure of a plant or two. But GM and local government can attempt to gain market share -- at the expense of their competitors. While this approach by government appears to result in an increase in recycling on the local level, on a larger level it is merely displacement.

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2.2 RECYCLING BUSINESSES This section of the report will give a brief profile of the recycling businesses serving North Carolina. These recycling businesses were referred to as "industrial and commercial recyclers" in the OWR Recycler Database. The phrases recycling businesses, industrial and commercial recyclers, and recyclers will be used interchangeably throughout this section.

2.2.1 Information Sources The OWR Recycler Database is a primary source of information on the indus!5al and commercial recyclers serving North Carolina used to develop this section of the report. ITRE recently updated the directory database for the Ofice of Waste Reduction (OWR). NCDEHNR. A separate end user telephone survey was conducted by ITRE with assistance from its subcontractor, Hazen & Sawyer, to obtain additional information ( i t . , products manufactured, recyclable material content and usage) from the end users. While conducting the end user survey, several firms who had previously identified themselves as end users tumed out not to be end users but primary processors. The potential exists that some other firms may also have incorrectly identified themselves in the OWR Recycler Database.

2.2.2 Definition of Recycling Businesses Recycling businesses can be classified as brokers, handlers. processors and/or end users. This classification is being used since this was the same classification used by ITREin the development of the OWR Recycler Database.

End user. In the OWR Recycler Database. an end user is defined as "a company that incorporates recyclable materials into products it uses or manufactures." An end user is any business that can incorporate a recycled material as a raw material. Some end users have the ability to handle secondary materials (Le., collection and sorting) and may also have the ability to process these materials.

End users are the driving force of the marketplace because they are the recycling businesses using the secondary materials handled and processed by other recycling businesses. In other words, end users are the final market for all recyclable materials. Figure 2.2.1 provides a list of those end users identified through the OWR Recycler Database and ITRE end user surveys as serving North Carolina. It also lists the feedstocks these companies use in production and the items that they manufacture. Appendix B cataeogizes end users by feedstocks used.

Processor. In the OWR Recycler Database, aprocessor is defined as "a company or firm that processes recyclable materials to meet the specifications required by end users." Processors typically clean. sort and prepare materials to meet end-user specifications. For example, processors of glass containers must crush the bottles into cullet and remove any metals or plastic contaminants before they can be marketed to a glass container manufacturer. hocessors are extremely valuable to end users since many end users do not have, or desire to have, their own processing facilities. Processors may provide handler or broker services and can be publicly or privately owned.

Handler. In the OWR Recycler Database, a handler is defined as "a company that physically collects and/or recovers recyclable materials directly from individuals or companies." A handler gathers recyclable materials through curbside collection. drop-off sites or buy-back centers. Items collected through these methods include scrap metals, paper, glass, plastics. and chemical and petroleum products. Handlers often sort the recyclable products by material type and can market them to a processor or directly to an end user that has processing capabilities.

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Handlers are valuable since they provide entry for materials to the recycling business markets. Handlers can take on the responsibility of the broker. Transportation to processors or end users is provided by handlers or contracted to other businesses that have hauling capacities.

Broker. In the OWR Recycler Database, a broker is defined as "an agent or firm that locates markets for recyclable materials and carries out the associated business transactions." A broker markets goods from local govemments, secondary material generators and handlers to processors and end users. Brokers can aid in fmding markets for recyclable wastes that could not otherwise be transported cost effectively. Waste paper, glass containers and tin cans are all items that are expensive to transport and often marketed through a broker.

Brokers have business expertise that is not easily acquired. They have an understanding of the quality and quantity of demand by end users in both domestic and export mde. They have experience in bargaining for the most advantageous prices. While they have the logistical skills to coordinate storage and transportation, brokers do not have handling or processing capabilities. The fate of brokers depends on the continuing profitability of dealing scrap materials.

2.2.3 Classification Recycling firms can be classified or looked at in many ways. For example, they can be classified as dealers (Le., brokers and handlers) and processors/end users. There are distinct advantages and disadvantages for using any one of these classification systems.

Some recycling businesses provide more than one type of recycling operation. thereby making it difficult to strictly categorize these firms. For example, a broker and a broker/processor may have entirely different types of operations; a processor who is a handler may operate differently from a processor who is an end user. See Figures 2.2.2 and 2.2.3 for two examples of alternative service delivery options for processing and other market services.

For the purposes of this report, the recycling businesses provided in the lists and maps generatedfrom the OWR Recycler Database are classfied by the highest order of service provided. End users are considered to provide the highest order of service followed by processors, handlers and brokers. For example, a recycling business that provides both broker and processing services would be classified as a processor.

Other differences in recycling operations may relate to ties to other recycling firms (especially end users), sources of supply. and the kinds and number of materials. For example, if one firm handles office paper only, its problem is dealing with different grades of paper (e.g., white, colored, ledger, computer). Another firm may be handling several different kinds of paper material (e.g., office paper, newsprint, paperboard), which requires more specialization and different equipment. Some firms handle different categories of material. For example, some scrap metal dealers handle glass, old newsprint and plastic, in additionto metal. Material recovery facilities (MRFs) by nature handle several materials.

2.2.4 Recycling Business Statistics A total of 362 recyclers serve North Carolina based on information from the OWR Recycler Database (as of March 1.1991): 318 recyclers (88 percent) have locations in North Carolina; 22 recyclers (6 percent) have locations in adjacent states (is.. Georgia, South Carolina. Tennessee and Virginia); 22 remaining recyclers (6 percent) are located in other states, primarily east of the Mississippi River. This total does not include the state's 120 tire retreaders (see Appendix B) or the increase in end users found as a result of the follow-up surveys used to develop

North Carolina is shown in Figure 2.2.4. For a summary of NC's recycling businesses grouped by geographic region, see Figure 2.2.5.

T h e secondary material marketplace for North Carolina includes many recycling firms that not only provide their services to the local NC markets, but also work in adjacent states and in other areas of the country. Some of these firms aTe providing a similar service to businesses and communities in states far from North Carolina. The location of end users is illustrated in Figure 2.2.6, processors in Figure 2.2.7, handlers in Figure 2.2.8 and brokers in Figure 2.2.9. For more information, please refer to the Profile of Recycling Businesses and Recyclable Materials in North Carolina working paper.

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the Section 3 material profiles. The relative locations of the identified industrial and commercial recyclers serving -

2.3 THE ASSESSMENT OF CURRENT MARKET DEVELOPMENT INITIATIVES

There is considerable concern at both the public and private levels regarding effective development of markets for recyclable materials. A variety of market development tools are currently being utilized to address this issue.

The objective of this section of the report is to assess curent and planned market development initiatives in NC state government, NC local government, the University of North Carolina system, supporting organizations, other states, the federal govemment and foreign countries. (For more information regarding the role these institutions have in the development of markets for NC's recyclable materials, see The Assessment of Current Marker Development Initiatives working paper.)

2.3.1 Assessment Tools Three assessment tools were used to prepare this section of the report:

Surveys. Surveys were conducted of key govemment officials and trade and professional association representatives. Response rates to the surveys were as follows*:

NC State Government Departments (100 percent)

NC Local Government (52 percent)

University of North Carolina System (69 percent)

NC and National Trade Associations (71 percent)

Out-of-state Recycling Officials (80 percent)

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Inrerviews. Interviews were conducted with key government officials, trade and professional association representatives, and industry analysts and professionals.

Liferamre Review. A literature review was conducted of state market development studies, industry and government research reports, US and overseas industry periodicals, state and federal policy papers, legislation, program profiles, trade association publications and imporVexport data.

The reports on state government, local government, the UNC system, supporting organizations and market development in other states employed all three tools. The federal government and foreign country reports were derived from interviews and the literature review.

2.3.2 Definition of Market Development Initiatives In this report market development initiatives (ortools) are categorized by function. They are ranked in descending order of potential government involvement:

PolicylRegulafion Any mandate or ruling affecting the method and/or activity of market development or support. This may include landfill bans, creation of product standards, labeling requirements, mandatory collection and separation of materials, and the permitting of processes, activities and products.

Procurement. The planning of, contracting for and purchase of products manufactured with recyclable materials. This includes use of price preference, guaranteed purchase and cooperative purchasing.

FinancialIncenrivesandDisincentives. Direct financial assistance includes loans, grants, equity investments and loan guarantees. Indirect financial assistance most often refers to tax incentives.

Education. The development of mass produced and distributed printed and visual communication media, such as brochures and videos, that are updated on an infrequent basis: and the development and implementation of school curricula.

*Based on specific department or organization contacted; in some cases multiple responses were given from one organization.

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Informution Access and Exchange. The development and use of information media, such as databases, bulletins and newsletters, that are updated on a frequent basis; and meetings, waste exchanges, teleconferences and hotlines that enable multiple party information and idea exchange.

Technical Assistance. The extension of problem-solving and consultation services may use the education and information access tools. Workshops, waste audits and training are examples of technical assistance programs.

Research. Laboratory experimentation or documented analysis of methods or technologies that may impact the ability to market recyclable materials; market research for uses of recyclable materials or products made with recycled content.

Demonsfration Projects. The implementation of laboratory research or technology that wiU impact the ability to market recyclable materials.

Marketing. The direct sales or promotion of recycled materials and/or products manufactured with recycled materials; trade shows and overseas lead development; recruitment of recycling businesses.

The above initiatives are used to encourage the following material supply and market systems:

Generation, Recovery and Tranrporration. The term generation is used to describe the process through which items are produced. Waste generators are those consumers or industries that produce both recyclable and non-recyclable by-products. Recovery and transportation is the process of gathering materials and shipping them to intermediate or end-user markets.

Processing. Processing of recyclable materials includes performance of any of the following functions: sorting, cleaning and/or preparing recyclable wastes to meet end user specifications.

And material markets:

End-User Demand. End-user demand is gauged by the willingness and eagemess of a company or institution to purchase a material needed to produce an end product.

End-User Producr Demand. End-user product demand is gauged by the willingness and eagemess of consumers to purchase a material or good.

2.3.3 NC State Government An assessment was conducted of selected NC state government departments that may have some potential involvement in market development activities and/or specific responsibilities as indicated in SB 11 1. The depaltments selected were Economic and Community Development; Environment, Health and Natural Resources; Transportation; Administration; Agriculture; Community Colleges; Correction; Public Instruction; and Revenue.

The evaluation of the NCDECD's current and planned initiatives concerning the SB 11 1 directives led to the categorization of agencies under three levels of involvement:

1) Directed: those agencies that have the mission, resources and understanding needed to administer

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market development-related programs and are currently doing so.

- Business/Industry Development Division

- International Trade Division

,' - Energy Division

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2) Needing direction: those agencies that appear to have the mission and resources, but need further education about how to m f e r current resources to secondary material market development initiatives, or agencies whose value as a resource depends on the activity generated by the private or public sector.

- Small Business Development Division

- Commerce Finance Division

- Division of Community Assistance

- Division of Employment &Training

- Science &Technology Research Center

- Technological Development Authority

3) Support: agencies whose perceived mission does not directly coincide with implementation of secondary material market development programs, but who have expressed support and are clearly involved in the areas of in-house recycling and preferred procurement.

- Employment Security Commission

- Utilities Commission

- Public Staff, Utilities

- Industrial Commission

- Rural Electrification Authority

- Banking Commission

- Savings Institutions Division

- Cemetery Commission

- Credit Union Division

- NC Travel and Tourism

- Executive Aircraft Division

- NCFilm Office

NCDECD and NCDEHNR are taking, and will continue to take, the lead roles in designing and implementing the programs and policies that affect market development. Bothdepartments' missions coupled with the directives in SB 11 1 give each entity a platform from which to have considerable impact on the future of recyclable material market development in the state. The NCDECD is charged with assisting and encouraging the recycling industry inthestate;theNCDEHNRiside"nliff dasthecoordinatingdepartmentforstatesolid wastemanagementactivities.

e Solid Waste Section, the Marine Fisheries Division and the Office of Environmentat Education

The departments of administration, transfirtation and agriculture have been making and plan to continue efforts to research and encourage the reuse and recovery of recyclables and the purchase of products with recyclable material content.

urrently. second et &I d ,elopment and support is conducted through four NCDEHNRoffices: the J" Office of Waste

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The other departments are in various stages of performing support for SB 11 1 initiatives. The departments of community colleges and correction both express their support for using their administrative roles to communicate recycling initiatives to the institutions under their jurisdiction.

2.3.4 NC Local Government ~

The realization of a 25 percent recycling goal by January 1. 1993. will fall largely on the shoulders of local govemment. Although many recycling programs are underway throughout the state, fmancing recycling programs and finding markets for materials are the emerging issues of concem.

local govemments (a unit of local govemment which holds a permit issued by the NCDEHNR to operate a municipal solid waste incinerator or sanitary landfill) to fde an annual solid waste management and recycling activity report. The first annual reports were due by October 1, 1990. These reports have been compiled and analyzed by the state solid waste planning project consultants under contract to the Office of Waste Reduction. The results of these reports will help the state identify and evaluate funding mechanisms for recycling programs and determine recycling education practices, waste disposal methods, waste composition and the degree to which recycling is occurring across the state.

While designated local govemments are primarily responsible for establishing recycling programs, all municipalities and counties will participate in this effort.

To ensure that the 25 percent recycling goal is met, local govemment programs are focusing on collection and separation of post-consumer and post-industrial recyclables, and their transport to brokers and processors.

Local govemment approaches to ensuring quantities of marketable material reflect a mix of experimentation and caution. Some municipalities have committed themselves to curbside pick up, drop-off and buy-back centers, or a combination of these collection methods. Others are observing activity mund the state before making a decision on a specific recycling strategy to undertake.

To encourage private haulers to recycle instead of disposing of potential recyclables, some counties are using financial incentives and disincentives. Raising tipping fees and using diversion credits are two such methods. To enhance the separation of recyclable materials and prepare them for transport to processors and end users, several local govemments have established material recovery facilities (MRFs) or m i n i - m s .

Local govemments receive recycling program support from the NC Association of County Commissioners, the NC League of Municipalities and the NC Rural Economic Development Center. Together, these organizations provide education, technical assistance, information exchange and access, and work to encourage favorable policy and regulations, and demonstration projects. The Development Center provides some financial assistance.

Councils of Govement (COGs) are planning commissions that assist their multi-county regions by providing technical assistance and research for economic and community planning. Several COGs are working independently and cooperatively with private enterprise to help bring a regional focus to recycling and market development of recyclable materials. The most notable example of this cooperation is the Material Recovery and Marketing Program among the 31 westemmost counties in the state.

2.3.5 The University of North Carolina System Like other state agencies, the UNC system is charged by SBI 11 to establish a recycling program in cooperation with the Department of Administration. Additional SB 11 1 mandates include helping the Department of Public Instruction develop, distribute and encourage the use of guidelines for the collection of recyclable materials and for solid waste reduction in the state system of education. The University is also given the responsibility of coordinating research activities that involve methods, processes and technologies for recycling and disposing of solid waste.

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Thestate,throughSBlll,hastakenamajorsteptowardassessinglocalrecyclmgpmgramsbyrequiringdesignated -

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The assessment indicates that universities are involved in campus recycling programs, procurement, research, marketinghfomation exchange and access, education and technical assistance programs. Smaller universities tend to focus their technical assistance, research and marketing programs on the local community. Larger universities are using research resources to impact recycling market development on the statewide level.

2.3.6 Trade and Professional Associations The issue of recycling has transformed trade associations whose members were concerned primarily with the manufacture and/oruse of specific materials, such as glass, aluminum or plastic, into organizations that have taken the initiative in educating the public and members of their own industries about recycling. Organizations have also taken the initiative in organizing standard processing specifications for recycled materials and promotion of the purchasing of products with recycled material content.

Recycling professional and trade associations offer local government and industry valuable information for developing recycling programs and understanding the issues that affect recyclable material market development. This information is often made available through printed materials, visual media and by speaking engagements.

North Carolina is home to state-specific trade associations, local or regional chapters representing the national trade associations and the headquarters for some national associations as well. These associations' agendas for market development of recyclables vary from govemment relations to research and education.

Headquarters of the larger national trade associations are active in education, information collection and dissemination, government relations, and research and development. Some of them have NC representation; others have regional representatives who take on a role that moves from education to technical assistance: providing information about industry specifications, identifying key players in the markets, and in some cases, facilitating seller and buyer interaction through on-site meetings. Larger associations also have the budgets to conduct original research. The American Paper Institute and The Council for Solid Waste Solutions are leaders in this area. Both organizations underwrite original research and demonstration projects and provide an extensive amount of information about markets and technological developments that affect the end use of recycled paper and plastic, respectively. Most of the associations contacted possess current information about research and legislative efforts around the country as they pertain to their specific interests. The Solid Waste Association of North America (SWANA) and the National Solid Waste Management Association (NSWMA) have particularly extensive information resources on recycling legislation, technical developments and markets.

NC trade and professional associations take an active role in helping shape local and state legislation, and often provide the same type of educational services as the national organizations.

2.3.7 Market Development in States Adjacent to North Carolina Officialshom Georgia, South Carolina,Tennesseeand Virginiaeachexpressed interest indevelopingacooperative relationship with North Carolina in order to promote regional market development. There are currently no established or proposed cooperative programs between North Carolina and these states. At present, Virginia and Georgia are the only states that have an administrative structure to address market development issues and programs.

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Each of NC's neighboring states have passed, or are preparing to pass, legislation that mandates the reduction of solid wastes entering landfills and incineration facilities. South Carolina and Tennessee are developing recycling legislation similar to SB 11 1. Recycling industry representatives in South Carolina expect their bill to pass in 1991 (1). To meet their goals, Georgia. South Carolina, Tennessee and Virginia have adopted similar market development programs to encourage recycling. Each state has created an advisory group to stimulate market development for recyclable materials. In Virginia, the Department of Waste Management and the Department of Economic Development share market development duties. Georgia has appointed a 15-member State Recycling and Market Development Council. South Carolina and Tennessee are in the process of establishing similar market development councils.

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Each of these states are taking advantage of their universities' research potentials to study the recycling business markets. Georgia Tech (Georgia), Clemson University (South Camliina), the University of Tennessee (Tennessee) and Virginia Tech (Virginia) are all working in support of state recycling agencies. In Tennessee, the State Planning Office is working with the University OfTennessee's Waste Management Institute to analyze the state's solid waste disposal options. The Waste Management Institute recently distributed a preliminary report on its findings.

NC's neighboring states have all attempted to prepare a database of their state recycling businesses. Virginia is currently the only state to have finished such a database, but Georgia, South Carolina and Tennessee have all begun to prepare their own.

2.3.8 Out-of-state Market Development The assessment of out-of-state market development initiatives indicates state-supported or coordinated recycling activity in a majority of the states. For many states, the emphasis has been on increasing the recovery of materials. Specific programs aimed at market development are less prevalent. but are on the increase. Some states have no current initiatives underway. Other states an? implementing market development tools within their state and have established cooperative arrangements with neighbring states. These ventures often concenh'ate on multi- govemment purchase of materials and coordination of research. Assessment results show the greatest market development activity among all states to be in the areas of preferential procurement and financial incentives. The areas generating the least response are overseas marketing and intemational efforts.

The opportunities to site new plants or expand current facilities provide many states with the impetus to link the encouragement of the recycling industry with existing industrial development programs. Consequently, there are few examples of recycled industries being targeted for special considerations. Most of the economic development initiatives are created primarily through the tax incentive programs described in the previous section Of the responding states, Indiana is the only one giving the recycling industry priority for economic development grants.

2.3.9 Federal Government The federal govemment's efforts in the area of market development for recyclable materials has been limited in scope. To date, the US Environmental Protection Agency (EPA) has been expected to take the lead role in this area, partially because the agency issued economic development guidelines for market development in 1982. However, the EPA has been criticized for not enforcing these guidelines, and their attempts at market development are regarded as ineffective according to one industry analyst (2). Congress, which had taken a back seat to market development, showed signs of life during the lOlst Congress through the introduction of bills addressing procurement and tax credits for the processing or use of recyclable materials. Although these bills died at the session's conclusion, they are expected to be reintroduced during the early part of the 102nd Congress, according to the NSWMA (3). Additional market development effort occurs at other federal agencies as part of their general missions, primarily in the areas of research and development, and information dissemination.

The assessment of market development initiatives supported by the federal govemment indicates that there is no single policy guiding strategy in this area. The activities that occur are separate to an individual agency or branch of govemment. There does not appear to be any cooperation or communication between levels of govemment to suggest a coordinated policy. This impedes the dissemination of information and policy from the federal govemment to the state and local level.

Attheagencyleve1,theEPA hasdevelopedprocurementguide1ines.dispensed grantmoney andcompiled anumber

Evaluation will provide an extremely comprehensive view of certain materials. Waste paper, aluminum, glass containers, compost and scrap tires are the selected materials.

Other federal involvement has come from the Office of Technology Assessment, which analyzed the US solid waste problem, and the Bureau of Mines, which has conducted research and development in the area of recycling metals.

Congress is expected to consider a number of bills that touch on market development issues, such as procurement guidelines, tax credits for the use of recyclables. tax disincentives and the management of "problem" materials.

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2.3.10 Overseas Market and Technological Developments While many of NC’s recyclable goods can be processed through domestic recycling facilities, foreign markets do exist and can offer opportunities to various recycling industries. Additionally. many overseas initiatives have been undertaken in the areas of collection. separation and processing. These activities have been noted in the assessment because they offer ideas on how to improve the quality and quantity of the supply of recyclable materials -- key

The Far East is currently the strongestmarket for America’s recyclable goods. These countries importthe majority of US scrap plastic, metal, glass and paper. Europe is another significant market for these materials.

Technological advances in Europe have aided its ability to recycle. Programs in many of these countries help to create and protect markets for recyclable goods.

The Americas have a relatively smaller market for US recyclable wastes, but have the potential to expand their imports. Canada, for example, is increasing its recycling capabilities as a result of strong public/private cooperation.

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2.4 CONCLUSION Alargenumberofstateagenciesareplayingorcouldplayasignificantroleinmarketdevelopment(e.g.. NCDECD, NCDEHNR. NCDOT. NCDA. the Depament of Agriculture and the LMC system). There is not one agency in state government clearly responsible for guiding recyclable material market development Various state agencies, NCDEHNR and NCDECD in panicular, have been given market development responsibilities by the legislature. However, these responsibilities are not clearly defined. As a result, there is a lack of coordination among state agencies in market development effons. NCDEHNR and NCDECD are both seeking to define their roles, but have not yet begun a dialogue which aims to allocate specific roles to each agency and to coordinate actions. The lack of overall market development direction from the state means 1) the few line agencies which are undertaking market development initiatives are doing so in a vacuum, and 2) many agencies and personnel who could play a key role are not even aware that they could.

For example, significant untapped potential exists within the component parts of the NCDECD to assist in market development. The Small Business Division, the Business/lndustry Development Division. the Technological Development Authority. Commerce Finance and the lntemational Trade Division each has the ability within its existing mission to assist in some aspect of secondary material market development. Studies in other states have shown that knowledge about the economic development process is the key to the market development process. While the specifics of any particular secondary material market can be leamed rather quickly. the economic development knowledge that resides in these agencies cannot. The ability of the NCDECD to assist in the market development process is significant.

The universities of the UNC system are focusing many of their efforts on market system development howcver, larger schools are undertaking material marketing roles in the areas of information exchange, and research and development projects. Trade and professional associations with a NC and national scope arc exaemely active in the areas of professional and public education and technical assistance.

An assessment of activity in states adjacent to North Carolina indicates an interest in the pursuit of mutual goals

especially in the Far East, and policy/regulation and technological innovations. primarily in Canada and Europe.

As can be seen in this assessment. there are many activities in progress, but they appear to be the first steps in statewide market development Great potential for cooperation appears to exist within and among public and private sector institutions to build a cohesive market development strategy for North Carolina.

related to material marketing. A review of foreign markets yields information on the potential for export markets, -

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FIGURE 2.2.1

END USERS SERVING NORTH CAROLINA: PRODUCTS MANUFACTURED AND FEEDSTOCKS USED

AMlhiprice Newsprint (1 9%) ARemath Recyding Technologies hJses (50%) Alemath Recyding Technologies Cabinets (65%) Akemalive Recyding Techno!qies American Nat'l Can. Faster-Forbes Glass

Finished carpentry (65%) Glass containm (18%) StodtCvAnderJ E%) Amex Packaging. Lid.

Amex Packaging, Ltd. E d - l m G k s Packagicg Cop. B e " Erin-Mont Corp. CKJ Twe servica Cascade Fkers Co. Cascade Industries, lnc.

Cascade Industries, lnc

Cascade Induslries, lnc.

Motex Cop. Charlie Keams T ~ d c Retreading Charblte Pipe 6 Foundry Co. Dewey Brothers. lm. Foundry Service Co. G.R. Ennk (L Son Foundry, Im. Gilmwe Associates. Inc. G i l m e Assoc$tes, Inc. Gilmwe Associates. Inc. HaliiPaperBoardCo..tnc. H a l i Paper Board Co.. lnc. Halslead Melal Fmduds Ha"& P M c Recycling Gorp. Hammets Plastic Recyclng Cop. Hammer's Plastic Recycling Cop. Hammer's Plastic Recycling Cop. Hilemn Labs

Rower vases (~bo%j Glass containers (36%) Wping doths (100%) Foam insulation (25%) Relread passenger andhudtlii (85%) Tab linens (10%) r m w m q rtwpaper(ioo%)

r- towel (100%)

Rooling fell (75%) Retreadedtfucktires (90%) Cast im sol p i p (100%) Grey iron metal castings (manhole covers/rhgs) (100%) Iron castings (a) Cast iron/municipalc~thglahghwaywolk(t00%) Recydedplaslics(lW%) Resil(100%) Recyded pohlpcopebne (100%) Pgerboard (100%) Converled papwproduds (100%) Copper W n g (70%) Park benches, pmic tables, speed bumps (1@%) Landscape ties (100%) car stops (100%) Pbstic lumber (100%) Chemicak lor mirror manubcturihg (45%)

ONP (S), Magazines (S), Wwdpup 0, Cran Pub (V) Woad (S), Windows (V), D m , fixlures (A), Lumber (S) WocdRumber (S) Woodhnber (S) A* 0, Sand PO, cu!!et (B) Vmyl (PVC) (E) Vmyl (PVC) (8) Sand (V). Ash (V), Old glass (S), Limestone 0 Kna materials (D). Colton (S), Conon polyethelene (S), Woven material (S) X-ray iilm (S) R h r 0. Reqded dust (S). Old tires (S) Polyester (S). Mon (V) Whileledger(gradeo1smdaryhr) (S),CPo(computerprintout) (S). Ledger (wprinled@wmsumer) (S) WhleIedger(gradeo1semndaryhbar) (S).CPo(mpulerprintout) (S). Ledger ( w p r i n t m m s u m e r ) (S) Whiheledger(gradeolsmnbtyhbar) (S),CW(computerpcintout) (S), Ledger (unprintedlpr-umer) (S)

RuWer 0, Old tires (S) Cast iron xr;g (S)

Scrap iron - remount old highway castings (S) Exbemely clean plastics (8)

MNed paper (S)

sa;p k+l (S) Scrap metal (SI

saap plastic (S) polyp rope^^ Sq, (S) hiiied paper (S). Cormgated contdners (S). Newspaper (S) Mhedpaper(S),~atedcon~ers(S),Newspaper(S) CopperdhhM,Ccpperscrap(S) HDPE (S), Polystyrene (S) HDPE (S). Polystyrene (S) HDPE (S), Polystyrene (S) HDPE (S). Polystyrene (S) SiEverkitver sludge waste (E), Nhric acid (V)

[A = Not Available; B I Both Recyclable & Virgin Materials; S = RecyclaMe Materials; V = Virgin Materials]

UNCITRE NC Recyding M

arket Development Strategic Plan Project

Page 2-14 4AB1

RecydaMe M

aterials Market Assessm

ent Report

Secondary Materials Generator

b End User 4

Figure 2.2.2 Alternative Delivery of Market Services Processing by Processor or End User

Shows the path of secondary materials when the secondary materials generator assumes

broker, handler, and/or processor capabilities.

Page 2-15 NC Recyding Market Davelopment Sbategic Plan Project UNClTRE Rwdable Materials Market Assessment Rewrl AMm,

Secondary Materials Generator

I Broker 1- I

Figure 2.2.3 Alternative Delivery of Market Services Processing by End User

Shows the path of secondary materials when the end user assumes

processor, broker, and other capabilities.

UNClTRE NC Recyding Market Development Strategic Plan Project Page 2-16 411191 Recydable Materials Market Assessment Report

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UNCITRE FIGURE 2.2.4 NC Recyding Market Development Strategic Plan Project Page 2-17 Recydable Materials Market Assessment Report 4/1/91

Figure 2.2.5 Recycling Businesses Serving North Carolina By Region

UNCITRE NC Recyding Market Development Strategic Plan Project Page 2-18 4\1/91 Recydable Materials Market Assessment Report

FIGURE 2.2.6 NC Recyding Market Development SVategic Plan Project UNCITRE 4/1/91 Page 2-1 9 Recydable Mateids Market Assessment Report

i

UNCITRE NC Recyding Market Development Strategic Plan Project FIGURE 2.2.7 Page 2-20 4/1/91 Recydable Materials Market Assessment Report

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FIGURE 2.2.8 NC Recyding Market Development Strategic Plan Project UNCITRE 4/1/91 Page 2-21 Recydable Matarids Market Assessment Report

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UNCITRE NC Recyding Market Development Sbategic Plan Project FIGURE 2.2.9 Page 2-22 4/1/91 Recydable Materials Market Assessment Report

References

(1) Quarles, Stanley, Personal Communication (south Carolina: South Carolina Recycling Association, 14 February 1991). (2) Keller, Bill. Personal Communication (Maryland: National Recycling Coalition, 29 October 1990).

(3) Hill, Jamie, Personal Communication (Washington, DC: National Solid Waste Management Association, 16 December 1990).

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Page 2-23 NC Recyding Market Development Sbategic Plan Project UNCITRE Recydable Mateiials Market Assessment Report 4/1191

3.0 RECYCLABLE MATERIALS MARKETS 3.1 INTRODUCTION

This chapter provides a discussion of the market system in general and specific markets serving North Carolina for a wide range of recyclable materials in the municipal and industrial waste stream. The materials are generally grouped in the same categories identified in the OWR Recycler Database, developed forthe North Carolina Office of Waste Reduction (NCDEHNR), to provide for compatibility between these two projects and to enable database information and maps to be utilized in this assessment. These materials are described in descending order relative to their importance to the NC marketplace. The material categories are paper, glass, metals, plastics, rubber, biomass (includes food waste), petroleum. construction, textiles and chemicals. For each of these materials, a description of the recyclables to be discussed in the report is presented, followed by an ovetview of the market structure. North Carolina 1990 solid waste generation rates and recovery estimates for most of these materials are provided through the year 2000 in Appendix C.

Following Section 3.0, end users, processors, handlers and brokers serving North Carolina are described and conclusions presented regarding strengths and weaknesses in the marketplace, factors affecting marketability and emerging market opportunities.

Since two of the primary target audiences for this report are state and local govemment officials who are seeking information and guidance as a means of achieving NC’s recycling objectives, stronger emphasis has been placed on addressing those materials most likely to be recovered through govemment-sponsored recycling programs. Such materials can be classified primarily as post-consumer (generated by individuals) and post-commercial (generated by commercial businesses and institutions).

Price information is presented on the predominant post-consumer and post-commercial recyclables in Appendix D as well as in selected materials sections. Weekly price data for December 1989 through November 1990 are presented for the mid-atlantic and southem regions of the United States.

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UNCITRE NC Recyding Market Development Sbategic Pkn Project Page 3-1 4/1191 Market Assessment Analysis Report

3.2 PAPER ~

3.2.1 Description ~

Paper is commonly formed from cellulose (plant fiber) pulp. The physical properties of paper and its typical uses cause it to be categorized as a non-durable good which quickly passes from consumers to the waste stream. In North Carolina, paper represents approximately 36.7 percent of the municipal solid waste stream or 1.5 million tons annually (see Appendix C).

3.2.2 Market Structure A variety of products are made from recycled paper. These include recycled printing and office papers, toilet paper. towels, napkins, recycled newsprint, paperboard, cellulose insulation, roofing felt, cushioning material for packaging and molded pulp products (e.g., egg caTtons, nursery pots). Recently, interest has emerged in the use of waste paper for animal bedding. Studies conducted by major universities have determined that newsprint and high-grade paper are safe for use as animal bedding, and several states have begun to use waste paper for dairy herds. Waste paper as animal bedding has realized less success in the poultry industry.

Paper mills are the foundation of the paper industry. Domestic paper and paperboard mills absorbed 77 percent of the waste paper recycled in the United States in 1988. Exports accounted for 21 percent of collected secondary fiber (1). Mills require a steady supply of feedstock to maintain production efficiencies and meet product demands. Paper dealers or processors play a major role in supplying mills. Processors may be independent of the mill or a subsidiary organization. Independent processors may collect different paper grades from a variety of sources and deliver them to appropriate markets. The processor takes responsibility for the quality of the delivered paper and may not buy paper from a particular source if significant contamination is discovered.

Waste paper may originate from paper products which have been consumed and discarded (Le., post-consumer) or may be produced from the manufacturing process itself (Le., cuttings and scraps from the production of sheet paper). This second source is often referred to as recovered materials. Usually, these materials are reused within the manufacturing process in which it was created or sold as raw material for another product Due to its purity it rarely enters the municipal solid waste stream, and there is debate as to whether it should be considered waste paper. The source of waste paper is important because it effects not only quality but also the economics of its collection.

Waste paper recovery methods depend on the source of the paper and include separate collection, drop-off locations and buy-back centers. Recovery from residents may entail all three methods. The commercial and industrial sectors are the primary source of old corrugated containers, and they are often sold to an intermediate processor. High grades and mixed paper are gathered through office paper recovery programs.

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A variety of manufacturing processes may be employed to produce different paper products. Flat sheet paper is created when pulp is deposited on screens and put through a paper machine for pressing and drying. Pulp for ofice papers, such as writing and copier paper, are usually bleached to aaain an appropriate level of brightness which the consumer may desire. The end use of the paper determines the quality of feedstock and the type of manufacturing process. Depending on the manufactured product and the technologies available, different levels of feedstock quality may be required by the end user. For this purpose, some industries have developed sub-grades within major paper grades which specify allowable contamination levels.

UNGITRE NC Recyding Market Development Sbalegic P h Project Page3-2 4/1/91 Market Assassment An+ Report

Contaminants will decrease or eliminate the desirability of waste paper to a mill or end user. Strings, plastic bags, metals and other foreign materials usually degrade the end product and are not acceptable to end users. Some mills, however, will allow a certain percentage of contamination. For high-grade paper, which includes white envelopes, gummed labels pose a problem because the label glue does not respond to the solvents used in pulping systems. Similarly, binding glues make telephone directories, magazines and books difficult to assimilate in the manufacturing process. Because recycled paper product manufacturers are often competing against mills using virgin pulp, which contain no contaminants, it is necessary for manufacturers to apply strict recycled feedstock quality criteria.

for waste paper are

~

Waste paper prices are very sensitive to changes in demand and supply. The primary factors affecting the demand -

- the demand for recycled content in paper products,

- the capacity to process waste paper into paper products in the United States and Canada,

- thecosteffectivenessof building additionalcapacity to process waste paper into paperproducts.

- the demand for waste paper in Mexico, Taiwan, Korea and Japan,

- the use of paper in packaging and

- the health of the US economy.

Unlike the United States and Canada, the importing countries lack the forest resources necessary to sustain a virgin fiber market. The United States, which is the largest paper-consuming nation in the world, is a stable source of raw materials for paper production. US export demand is affected by the value of the dollar relative to the importing nation’s currency and the availability of ships to carry waste paper on their retum trip from the United States. These factors reduce the cost of acquiring waste paper from the United States.

For manufacturing purposes, end users of recycled waste paper must view the material as feedstock to their production process just as they would virgin materials. Consequently, the recycled materials must meet the specifications of a manufacturer’s production process and equipment. Waste paper products may require that only one type of paper be used or that a mix of paper types be incorporated. While there are over 80 specific grades of waste paper bought and sold in the marketplace, the most common types of waste paper used as feedstock, which are important from a waste management standpoint, are old newspaper (OW), old corrugated cardboard (OCC), mixed paper and high-grade paper.

Old Newspaper Old newspaper (0”) represents nearly 24 percent of paper in the waste stream nationally (2). Using national per capita estimates, this would translate to a NC generation rate of 347,600 tons of ONP in 1990. Products made from recycled newsprint may require pulping, or they may be dry-processed. Products which require pulping include recycled newsprint, roofmg felt, paperboard (e.g.. boxboard, cones, tubes), construction paper, molded pulp products (e.g., egg cartons) and tissue (e& brown paper towels). Cellulose insulation, animal bedding and cushioning material for packaging may be dry-processed and require no pulping. Cellulose insulation is produced by grinding ONP and mixing it with fire-retardant and anti-corrosion chemicals. The residential waste stream offers an abundant potential source of old newspaper.

In the past, abundant virgin feedstock meant that technologies for paper manufacture were developed for virgin materials, and mills were designed primarily for this feedstock. Some paper industries, however, have made use of recycled materials for many years. As national solid waste management practices evolved in response to decreasing landfd space and changing public attitudes, recycling emerged as a viable solution to some of the nation’s waste. Newsprint was a primarytarget of municipal recyclingprograms. Existing mills designed to accept secondary feedstock were at first capable of assimilating collected waste paper quantities, but as the number of recovery programs grew, the markets experienced significant saturation culminating in 1989. Coinciding with the increased supply was a drop in exports for that year. On the East and West Coasts, dealers were still able to find an export market for their surplus, but in the Midwest many dealers refused to accept newsprint from municipal

Page 3-3 NC Recyding Market Development Stategic P h Project UNClTRE Market Assessment Analysis Report 411191

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recovery programs. Analysts predicted that it would take two to three years before domestic newsprint makers would be equipped to handle a larger volume of recycled newsprint.

Recyclingprogramsplacingtheiremphasis on recovery ofnewsprint assumedthatmarkets would expandnaturally to meet the increased supply of newsprint This did not happen for several reasons: the technology required to produce paper from recycled newsprint differs from that used for virgin pulp; most existing paper mills were built to process only virgin pulpwood into paper; the conversion of a virgin pulpwood newsprint mill into one which accepts waste paper requires, among otherthings, de-inking capability, which costs between $60 million and $80 million (3). A more detailed discussion of economic factors follows.

In the United States, ONP is reused primarily as newsprint or paperboard. The United States exports 22 percent of recovered ONP to other countries. Figure 3.2.1 presents the distribution of ONP uses in 1988 with projections for 1995. The proportion of ONP used in domestic newsprint production is expected to hold steady over this period with only a slight increase. The proportion of ONP used to manufacture paperboard is expected to fall from 28 to 19 percent The proportion of ONP exported to other countries is expected to increase from 22 to 33 percent. Thus, the influence of export markets on demand and prices will continue to increase over the next five years.

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Figure 3.2.1 Uses of Old Newsprint (ONP) in the Unlted States

1988 1995 I "= Construdion PaperMrd Exports Newsprint PapelbOatd Other Paper Other Uses

656 22% 30% 26% 4%

10%

4% 33% 31% 19% 3%

10% I

Sourca:American Paprlnshm. P ~ r R m y c k g : The Wewto 19s5SummryReporf, Fnbtwy 1WO. TaMe 1.9.

Of the 23 US newsprint mills in the United States in 1989, eight were equipped to process ONP. ONP processing capacity was 18 percent of the 6.3 million short tons of newsprint production capacity in the United States in 1989. Additional ONP processing capacity since 1989 has increased this proportion to 22 percent.

Canada is the large,st producer of newsprint in the world. Fifty-five percent of US newsprint consumption is imported from Canada. Most of the Canadian mills are located near the US/Canadian border. However, of its 43 newsprint mills, only one reuses ONP. Canadian capacity expansion planned for the period 1989 to 1992 will increase recycling mill capacity to three percent (4).

Figure 3.2.2 presents the tons of ONP used in each type of product from 1980 to 1988 and a forecast for 1995 (5). By 1995, ONP recovery is expected to increase by 70 percent from 1988 levels. Exports are expected to double.

Figure 3.2.3 presents monthly prices paid by mills for newspapers since 1984. These prices do not include

1984 to 1987. The steady price drop beginning in 1988 and continuing through 1990 is due to an excess supply of ONP caused by increasing quantities of newsprint being collected by municipal recycling programs.

ONP. The incentive to build more capacity is economic. Recycled newsprint mills cost from $400-$500 million each, require large amounts of water (8 million gallons per day). and take five years to site and consmct (6). TO justify such an investment, the long-term relative price of virgin fiber has to go up and/or the demand for paper products with high levels of recycled content has to increase dramatically.

transportation costs to the mills (FOB shipping point). The price series indicates a cyclical pattem of prices from

As this supply continues to grow, prices will recover only to the extent that additional capacity is built to process

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UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-4 4/1191 Market A s " e n t Analysis Report

The productive timberland of Canada continues to provide a stable and inexpensive source of virgiil fiber to the newsprint industry. Thus, the price of virgin fiber provides no incentive to invest hundreds of millions of dollars for ONP processing capacity. In addition, much of the new capacity in the United States and Canada now coming on line uses virgin fiber. These mills were planned five years ago, before newspaper recycling was as popular as it is today. Thus, virgin fiber will continue to be an economical raw material for paper production and will serve as a barrier to increased use of ONP in newsprint production.

The primary economic incentive to encourage growth in recycled newsprint capacity is a significant increase in the demand for paper products with large portions of recycled paper content. Over the last several years, this

industry-government agreements (7). As a result, major newsprint manufacturers are planning and building ONP processing capacity. Some of this capacity is expected to be on lie in the United States and Canada by the mid-1990's. Companies that have announced new capacity include Augusta Newsprint in Augusta, GA; Bowater in Calhoun, TN and Catawba. SC; and Weyehauser in Oregon. Jefferson Smurfit Corporation is exploring the construction of a recycled newsprint mill in New York. This increase in ONP processing capacity will be the primary factor in the recovery of the old newspaper prices.

Once old newspaper processing capacity comes on line, the long-term health ofthe ONP market can be maintained through a large, reliable and steady supply of 0". This will encourage newsprint manufacturers to continue to build and maintain ONP processing capacity.

Old Corrugated Containers Old cormgated containers (OCC) are considered to be the most recycled of the paper grades. OCC is used to make new containers, Kraft paper, linerboard and cormgated medium (Le.. the serpentine paper sandwiched between two flat sheets in cormgated boxes). The primary source of OCC is commercial and manufacturing waste. Due to the large volume that a single source may produce, many businesses recover their OCC to reduce disposal costs. Revenue from the sale of the containers and avoided disposal costs often pay for recovery costs.

Figure 3.2.4 presents the distributions of OCC uses in 1988 and projections for 1995. Domestic recycled paperboard production is the largest use of OCC. It comprises 46 percent of all uses of OCC supplied from the United States. By 1995, its market share is expected to fall slightly to 40 percent of OCC uses, while the share of Kraft paperboard will increase from 15 to 22 percent The shares of US exports and the remaining uses of OCC are expected to remain steady over the next five years.

~

demand has come from government procurement and legislation, public pressure, and voluntary -

Figure 3.2.4 Uses of Old Corrugated Container (OCC) in the United States

I use 1988 1995

Consttudion PaperBoard 1.5% 1% EwPodS 20% 2G% Paper 3% 3% Recycled Papebard 46% 40% Semichemical Corrugating 14?4 1%

UnbleachedBleached Krafi 15% 22% Medium

I Swm: American Paper Inshm. Papsr Recyclirrg: The Hew IO 1995 Summary Reprt,

February 1990. Table 1-9.

Page 3-5 NC Recyding Market Development Sbategic Plan Project UNCiTRE Market Assessment Analysis Report 4/1/91

Figure 3.2.5 presents the tons of OCC used in each type of product from 1980 to 1988 and projections for 1995 (8). Total recovery of OCC has grown steadily over the past ten years and is expected to increase by 50 percent from 1988 to 1995. The mills that purchase OCC are in the Southeast and Pacific Northwest, while the generation of OCC occurs in areas with large populations throughout the United States (9). Thus, while demand for OCC is expected to increase steadily, the shipping network will need to become more cost effective to sustain the growth in demand.

Figure 3.2.6 presents the price history of OCC. The four-year price cycle reflects the usual demand and supply imbalances that characterize a competitive market. The low prices in 1989 represent the bottom of a normal cycle.

to the large Pacific Northwest domestic and West Coast export markets. The price differential reflects the cost of transportation from New YoIWChicago to the Northwest, Southeast and export markets.

High-Grade Paper Discarded printing and writing paper, copier paper and computer paper are examples of high-grade waste paper. High-yield sources include banks, insurance companies, print shops and office buildings. Although a high value is placed on this paper, little demand exists for it in domestic mills. Most high-grade paper is exported. High-grade waste paper may be mixed with virgin pulp to produce printing and office papers. Tissue products are also manufactured using a combination of recycled high grades and virgin pulp. Figure 3.2.7 presents past and projected uses of high-grade paper for 1988 and 1995.

The United States exports 34 percent of its supply of high-grade paper, and exports will increase to 46 percent of the market share by 1995. The use of high-grade paper in tissue production will also fall from 43 to 34 percent of use.

~

The price differences between San Francisco and the other two regions are due to the proximity of San Francisco -

Figure 3.2.7 Uses of High Grade Paper in the United States

USe 1988 1995

Construction Paperhard 1% 0%

Exports 34% 46%

Packaging 1% 0%

Paperboard P/O i%

PrintingNfitirg 1 2% 15%

i7ssue 43% 34%

Source Amencan Paper Imbtm, Paper Recycling' The Viw io 1995 Summav Report February 1990, Table 1-6

UNClTRE NC Recyding Market Development Sbategic Plan Project Page 3-6 4/1/91 Market Assnswnent Analysis Report

Figure 3.2.8 presents the tons of high-grade paper used in each type of product from 1980 to 1988 and projections for 1995. There has been slow but steady growth in high-grade paper recovery during this period. By 1995, however, recovery is expected to increase 70 percent f" 1988 levels. The largest growth areas are expected to be in the export, tissue and printing/writing paper markets.

Figure 3.2.9 presents a price history of high-grade paper. Unliie the other waste paper markets, high-grade paper has been experiencing price increases since 1986 even though previous decades have seen a cyclical pattem of prices. The very high demand for high-grade paper relative to supply has kept prices from falling.

Mixed Paper - Mixed paper may be any combination of the above mentioned paper grades and products and may contain glossy papers (e.g.. magazines), and colored and groundwood papers. Mixed paper is considered the lowest grade of waste paper due to its unpredictable fiber content and susceptibility to contamination. As such, it has the lowest value among waste papers. Mixed paper is sometimes used as a fraction offeedstock in paperboard mills to produce the paperboard used in food and shoe boxes, writing pads, and as inserts to packaged shirts. In Belgium, mixed paperand wheatstraw iscombined to form anenvironment-friendlyproductwhichsubstitutesforgypsumdry-wall.

Figure 3.2.10 presents the distributions of mixed paper uses in 1988 and projections for 1995. The primary use of mixed paper is the production of paperboard which comprises 55 percent of mixed paper use. The share of mixed paper used in paperboard is expected to fall to 49 percent by 1995, while its use in paper products is expected to grow. The share of mixed paper exports is expected to remain constant at about 27 percent from 1988 to 1995.

Figure 3.2.10 Uses of Mixed Grade Paper in the United States

I "= 1988 1995 I

Consttuclion PaperBoard 11% Expoas 27% Paper 7% Paperboard 55%

7% 29% 15% 49%

I I Scurca:Atmkan Paper Instiplle, Pqmr Recydiw: The Wewto 1995Su"a,y Report.

Feb~ary 1990,Table 1.11.

Figure 3.2.1 1 presents the tons of mixed paper used in each type of product from 1980 to 1988 and a forecast in 1995. Mixed paper recovery has grown steadily during this period. Mixed paper recovery is expected to increase 40percent from 1988 to 1995.

purchase baled mixed paper at a slightly higher price.

3.2.3 Markets Serving North Carolina The advent of recycling as a waste management strategy has raised concerns among policy makers as to whether or not existing markets can consume the increasing supply of recycled materials. The consumption of additional waste paper generated in North Carolina is dependent not only on additional regional end-user capacity but also on the demand for products made from recycled paper worldwide. As noted previously, much of the high-grade paper collected domestically is exported to foreign countries.

Mixed paper is either given to processors at no charge or sold to processors for about $5 per ton. Paper mills -

Page 3-7 NC Recyding Market Development Strategic Plan Project UNCITRE Market Assessment Analysis Report 4/1/91

The OWR Recycler Database indicates that at least nine end users serve North Carolina. A survey of these end users, partial results of which are summarized in Appendix B. reveals that a variety of products are manufactured from recycled materials collected in the state. The Jiffy-Pak Division of Sealed Air Corporation uses tissue and newsprint from North Carolina and Kraft paper from out of state in the manufacture of protective packaging for fumiture and padded mailing envelopes. Cascade Industries manufactures tissue, tissue paper and tissue towels from post-consumer ledger and computer paper, 25-30 percent of which comes from North Carolina. The Celotex Corporation produces roofing felt from mixed paper. The product has a recycled content of 75 percent, and 30 percent of the mixed paper used comes from North Carolina. Southeast Paper in Dublin, GA, produces 1 00 percent recycled newsprint. The plant consumes 530,000 tons of ONP annually, 10 percent of which comes from North Carolina. Corrugated containers with recycled content of 33 percent are manufactured by the Weyerhauser Paper Company. Ninety percent of its recycled feedstock comes from within the state. Abitibi Price, Georgia, combines secondary and virgin materials to produce newsprint with an 18-19 percent recycled content. This company uses amix of 70 percent ONP and 30percent coated magazine paper forthe recycled portion of its feedstock. Annually, Abitibi Price uses l15,000tons, 20-25 percent of which comes from North Carolina. Halifax Paper Board generates 100 percent recycled content paperboard from mixed paper, corrugated and ONP. Twenty-five percent of its feedstock comes from within the state. South Carolina’s Sonoco Products Company in Hartsville, SC, manufactures drums, tubes, cones and composite cans containing 25-100 percent recycled feedstock. Six percent of their recycled feedstock comes from North Carolina.

End users report consuming 278.326 tons of recycled material from North Carolina. Actual consumption figures are somewhat higher than this because some end users considered this information proprietary and provided no quantities. Approximately 18 percent of reported total quantities consumed are from North Carolina. The average recycled content of the products is 83 percent. One of the end users reports plans to expand production, and four report plans to increase the recycled content of their products. End users were asked to identify problems associated with consuming secondary materials. Respondents cite sludge disposal, contaminants and public perception of recycled products as problems. Contaminants mentioned are plastic, glue, phone books and bags.

Figure 3.2.12 displays the location of end users, processors, handlers and brokers serving North Carolina. Figure 3.2.13 and Figure 3.2.14 shows that end users serving North Carolina are geographically dispersed throughout much of the state. In addition, end users which serve North Carolina have been identified in South Carolina and Georgia. Within North Carolina, end users have been identified in all regions except the Tidewater region. This does not mean that this region does not have access to an end user. Although distance to an end user certainly affects transportation costs, Southeast Paper’s six-state collection system (see discussion of processors below) demonstrates that interstate transport of waste paper is economically feasible at present. Being close to an end user does not guarantee a market for all grades, since the end user may use only one single grade. For Figures 3.2.12 and 3.2.13, it is important to note that due to mapping limitations, facility locations are identified by the highest level of market service which they provide, and only one symbol perlocation is provided regardless of the number of facilities present.

Some end users have developed their own regionally dispersed processing operations. Such is the case with Southeast Paper, which has developed 18 processing centers in six states to supply its Dublin, GA, recycled newsprint manufacturing plant with 530,000 tons per year of ONP (10). Most processors are independent firms that buy loose paper from a generator, process the paper to end-user specifications and transport the paper to the end user. A typical paper processing operation requires some sorting capability, a large capacity baler, forklifts

for quality control and aaainment of transportation efficiencies for waste paper before it is delivered to the end users. Due to these relationships, it is more critical that processors be near waste paper sources than it is for end users.

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and loading docks. Paper is typically baled for ease of handling and transport. Processors provide a mechanism -

UNCITRE NC Recyding Market Development Strategic Plan Projed Page 3-8 4/1/91 Market Assossment Anaiysis Report

Figure 3.2.15 displays the number of processor locations seming North Carolia. It is important to note that the OWR Recycler Database may not contain all processors (as well as brokers and handlers) located in and around the state, but only those who agreed to be listed. The strongest concentration of processors located in North Carolina is in the Piedmont region.

Serious deficiencies in processing capability appear only in the Tidewater region. However, since not all processors handle the full range of paper grades, grade-specific gaps in the processing capability could also exist in other regions. For areas experiencing such gaps, handlers and generators may need to assume more. responsibility for processing and shipping their own materials.

The OWR Recycler Database identifies 58 handlers in North Carolina. Thirty-nine of the handlers serve additional roles (primarily as processors). A significant number of recovery programs are sponsored by local govemments throughout North Carolina.

Handlers and processors of waste paper may market the paper themselves, or they may make use of a secondary materials broker. A brokerwilltypicallymarketacollector’smaterials inexchangeforapercentageoftheresulting revenues. The OWR Recycler Database identifies 30 brokers in the Southeast Only four of these are exclusively brokers. The remainder serve additional functions (e.g., handlers, processors, end users). A list of businesses involved in paper recycling is in Figure 3.2.16

3.2.4 Conclusion Waste paper represents a significant portion of the municipal solid waste stream. Components of waste paper which can be recovered include old newspaper, old cormgated containers, high-grade paper and mixed paper. Waste paper recovery is dependent on the coordinated efforts of generators, handlers, processors and end users. The current and future levels of recovery are dependent on demand for waste paper and the health of the US and foreign economies.

Recovery of all grades of waste paper is expected to increase 40-70 percent between 1988-1995. Exports of all grades except mixed paper are expected to increase during this same period. Although no capacity expansions were planned for NC end users, all expressed adesire to increase consumption of waste paper in current operations.

Currently, end users lack sufficient demand for waste paper products to justify the large expense of capacity expansion. Mixed paper markets are the weakest of all grades. Identification of and demand for mixed paper products is critical to increased recovery of mixed paper.

New products (such as gypsum board substitute, manufactured in Belgium from mixed paper) will need to be tested and introduced to the marketplace. Additional efforts by govemment and businesses to procure waste paper products may also stimulate demand.

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Page 3-9 NC Recyding Markel Development Strategic Plan Project UNCITRE Market Assessment Analysis Report 4/1/91

Figure 3.2.2 Old Newspaper Demand 1980 to 1995

(in thousands of short tons)

Year Construction Newsprint Pape&oard OtherPaper OtherUses Exports Imports Total Paper/Board Recovery

1980 305 852 1,244 163 300 425 10 3,279 1981 238 894 1,258 162 300 425 9 3,268 1982 206 1,066 1,257 144 300 454" 12 3,415 1983 235 1,036 1.258 163 300 51 1- 18 3,485 1984 21 6 1,258 1,246 175 300 594" 16 3,773

1987 277 1,386 1,274 205 450" 931" 30 4,493 1988 279 1,431 1,318 187 500" 1,069" 30 4,754

1985 21 2 1,312 1,164 1 87 350" 669" 29 3,865 1986 259 1,364 1.293 202 400" 802'' 31 4,289

~

1995' 300 2,450 1,500 265 820 2,665 N/A 8.000

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Page 3-1 1 N

C Recyding M

arket Development Stategic Plan Project

UNC-ITRE M

arket Assessment Analysis Report

4/1/91

Figure 3.2.5 Corrugated Demand 1980 to 1995


t

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Year Construction Paper Recycled SemMxlemlcal Unbleached 8, Exports Imports Total PaperBoard Bleached K m Recovery

1980 1981 1982 1983 1984 1985 1986 1987 1988

399 344 312 338 244 222 227 228 187

244 242 217 250 259 309 308 290 395

4,200 4,099 3,787 4,275 4,562 4,640 4,931 5,258 5,733

1,152 1,217 1,318 1,346 1,576 1,578 1,607 1,645 1,722

871 1,008 1,136 1,234 1.331 1,150 1,561 1,755 1,876

1,209 991

1,01 2=* 1,105" 1,409- 1.467' 1,738.' 2,134" 2,482"

13 12 11 14 17 5 7

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8,062 7,889 7,771 8,534 9,364 9,361

10,365 11,297 12,379

200 500 7,600 2,500 4,200 3,800 NIA 18,800

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Page 3-13 NC Recyding M


UNCITRE M

arket ks

me

nt Analysis Repcrt

4/1/91

Figure 3.2.8 High Grade De-inking Demand 1980 to 1995


Recovery I Year Package 8 Ind. Paperboard Printing, Writing ConSttuCtlon Tissue Expons Imports Convening & Related PaperBoard

1980 1981 1982 1983 1984 1935 1986 1987 1988

105 115 120 129 158 129 172 168 237

303 308 268 279 329 304 342 336 320

4 27 23 14 0 0 1 2

22

730 758 807 896 876 942

1,049 1.051 1,106

176 130 $1 48 SXJ $325 $342 $482 $566 $882

0 0 0 1 3 7

16 18 19

1,318 1,345 1,371 1,561 1,691 1,716 2,036 2,112 2,554

0 300 650 0 1,400 2,000 tVA 4,350 I I

Swrca '1988 Amual Stansbcal Sunmary d W& Paper Uahabm.' Papw Recyding Crmmltlee. Amencan Paper Insbbb. Jlne 1989 'Frankin Assoaates. LtJ , a e trealed as net expo& in 19% pro "Revlsed based m dala f n n 'Annud Shbstcal Sunmay.' Nempmt 6"" mm. American Paper ImMute. September 1989

1 I I ' i l

Figure 3.2.9 Mill Buying Price for White Ledger (De-inking) for New York, Chicago, Atlanta,

and San Francisco

300F 250

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1984

Reprinted from "Markets for Post-Consumer Waste Paper Grades", Final Review Draft, March 1990, Prepared for U.S. Environmental Protection Agency by Franklin Associates, LTD., under subcontract to NUS Corporation, 68-01 -731 0

1 I I I

Figure 3.2.11 Mixed Grade Demand 1980 to 1995


Year Paper Paperboard Condructlon Exports Imports Total Recovery Convertlng Paper/Board

1980 86 1,410 772 649 55 2,862 1981 104 1,462 667 474 50 2.657 1982 91 1,185 431 438.' 45 2,100 1983 97 1,373 438 625" 62 2,471 19M 76 1,483 416 82T' 69 2,733 1985 82 1,415 405 854'* 44 2,712 1986 122 1,574 348 681" 43 2,682 1987 78 1,687 352 725'' 65 2.777 1988 201 1,644 336 823" 96 2,908

~_____ ~ I 1995' 600 2,000 300 1,200 NIA 4.100

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0 End Users m Processors A Handlers

Brokers

*A symbol represents one or more recycling businesses of the same type located in the same city ‘3 &mpantes are prioritized by type of

busmess h d User. Pmcgsar, Handler. Bmker

NC Recyding Market Development Strategic Plan Project UNCITRE 4/1/91

FlGURE3.2.12 Page 3-17 Market Awssmenl Analysis Report

UNCITRE NC Recyding Market Development Strategic Plan Project FIGURE 3.2.13 4/1/91 Market Assessment Analysis Report Page3-18

Figure 3.2.14 Waste Paper End Users Serving North Carolina

State Region Number of End Users

North Carolina Mountain Piedmont Coastal Plain Tdewater

South Carolina N/A

Virginia WA 1

Source: OWR Recyder Dalabase.

Page 3-19 NC Recyding Market Development Strategic Plan Project UNCITRE Market Assessment Analysis Repart 4/1/91

Figure 3.2.15 Waste Paper Processors Serving North Carolina

State Region Number of Processors

Noah Carolina

~ ~

Mountain Piedmont Coastal Plain TKJewater

~

4 24 5 1

South Carolina N/A 1

Virginia tVA 1

Scum: OWR Recyder Database.

UNClTRE NC Recyding Market Development Strategic Pbn Project Page 3-20 4/1/91 Market Assessment Analysis Report

FIGURE 3.2..16

RECYCLING BUSINESSES ACCEPTING PAPER MATERIALS

~

~

ENDUSERS

- Carolina Paper Board Carp. (Cha~Iotle, NC) [PE]

- Cascades Industries, Inc. (Rockingham, NC) [E]

- Celotex Cop. (Goldsboro, NC) [El

- Halilax Paper Board Co., Inc. (Roanoke Rapids, NC) [E]

- Jackson Paper Mlg. Co. (Sylva, NC) [E]

- King's Kountry Klassics (Hendersonville, NC) [BHPQ

- Sadmer Produds, Inc. (Statesville, NC) [E]

- S o n m Produds Company (Harlsville, SC) [BHPE]

- Southeast Recycling Cop. (Marietta, GA) [BHPE]

- Weyerhaeuser Paper Co. (Charlotte, NC) [BPE]

[E - End User; P - Processor; H -Handler; B I Broker]

. ..

-

Page 3-21 NC Recyding Market Dcvelopment Sbategic Plan Project UNCITRE Recydable Materials Market Assessment Rewrt dlilql

Paper (cont’d) Piedmont Paper SlockCo. (Greensboro, NC) [BHP]

- PROCESSORS

- Add Paper Cores (Rdingham, NC) [HP]

- Asheville Waste Paper Co., Inc. (Asheville, NC) [BHP]

- Atpica] Recyclers (Winston-Salem, NC) [HP]

- Bdamy Brothers Papet (Tabor Cly, NC) [HP]

- Bryant Salvage Co., Inc. (Madison Heights, VA) [BHP]

- Carolina Recyding Industries (Charlone, NC) [BHP]

- Cohen 8 Green Saivage CO., Inc. (Fayeneville, NC) [BHP]

- Durbin Paper StockCo. (Charbne, NC) [BHP]

- ECOS Recyding (Chapel Hill, NC) (HP]

- Easlem Carolina Vocational Center (Greenville, NC) [BHP]

- Eastem Waste Paper Company (Wendell, NC) [BHP]

- Fairfield County Redemptbn (Charlone, NC) [HP]

- GDS Recycling Services (Conover, NC) [BHP]

- Halifax Recyding, Inc. (Roanoke Rapids, NC) [BPI

- Iredell County Recyding Center, Inc. (Statesville, NC) [BHP]

- MER Recyding (Durham, NC) [HP]

- Meddenburg County Recyding, Inc. (Charlone, NC) [PI

- Piyler Paper Stock Co. (Charlone, NC) [BHP]

- Rainbow Recycling & Botanicals (West Jelferson, NC) [HP]

- Reliable Disposal Service, Inc. (Edenton, NC) [HP]

- S. Swarlz a Sons, Inc. (Durham, NC) IHP]

~

-

- Secure Data Paper Shredding 8 Recyding (Winston-Salem, NC) [HPI

- Southern MalntenanmlRecyding (Canton, NC) [HP]

- Spltle Co. (Belmont, NC) [PI

- Sun BBh Recycling (Lexington, NC) [BPI

- Sun Shares (Durham, NC) [HP]

- TriCounty Industries (Rorky Mount, NC) [HP]

- Wagram Paper S t d , Inc. (Wagram, NC) BHP]

- Waste Management 01 Central Carolina (Abemarle, NC) [PI

- Webster Enterprises (Webster, NC) [HP]

- Wellpak. Inc. (Greenville, SC) [BPI

- Ziglar Distrbuting Co. (Winston-Salem, NC) [HP]

- Md.Soulh Metals, Inc. (Greenville, NC) [BHP]

- Orange Recycling Services, Inc. (Chapel Hill, NC) [BHP]

- Paper S t d Dealers, Inc. (Charlone, NC) p P ]

[E = End User; P - Processor; H - Handler; B = Broker]

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-22 4/1/91 Recydable Materials Market Report

Paper (cont'd)

HANDLERS

- Aberdeen Recyding (Aberdeen, NC) [HI

- C.I.R.C.L.E.(Creedmwr,NC)[HI

- Cape Fear Recyclers, Inc. (Wilmington, NC) [HI

- Cumberland Sheltered Workshop (Fayeneville, NC) [HI

- Curb Waste 8 Recyde, Inc. (HendersonviUe, NC) [BH]

- Dependable Sanitation Servims, Inc. (Goldsbaro, NC) [HI

- Edgecomb Recyding Cop. oatbom, NC) pH]

- Federal Waste Paper Co. (Burlington, NC) [HI

- Keyh to Industrial Training 8 Services (Wilmington, NC) [HI

- Momson's Recycling (Elkin, NC) [BH]

- Paper St& Dealers, Inc. (Duham, NC) v ]

- Rainbow News (Winston-Salem, NC) [HI

- Recyde, Inc. (Wilmington, NC) M

- Recyding Oepot (Tar Heel, NC) [BH]

- RiNs Gabage Sewice, Inc. (Raleigh, NC) M

- Riddich Recycling (Edenlon, NC) [HI

- Sandhills Recyding (Soulhem Pines, NC) [HI

- Waste Industries, Inc. (Wilmington, NC) [HI

- Waste Management of Asheville (Asheville, NC) PI

- WataugaCounty Recyding Center (bone, NC) [HI

- Weyerhaeuser Paper Co. (Charlotte, NC) [HI

* BROKERS

- Atlantic Recycling, Inc. (Wilmington, NC) [E]

- MiAtbntic Fibres (Raleigh. NC) [E]

- ParkTrading Co. (Cranston, RI) [E]

- Rosewood Paper Sales Co. (Charlotte, NC) [E]

- Tallent Drum Company (Lowell, NC) [HI

- Triad Paper Recyding (High Point, NC) M

- U. S. Recycling Industries (Charlotte, NC) [BH]

[E I End User; PI Procassor; H -Handler: B - Broker]

Page 3-23 NC Recyding Market Development Sbatagic Plan Project UNCITRE Recvdable Materials Market Assessment ReDorl 411191

References ~

(1) Markets for Selected Postconsumer Waste Paper Grades (Washington, DC: US Environmental Pmtection Agency, Office of Solid Waste, March 1990).

(2) bid.

February 1990).

(4) Ibid.

(5) Plan for the Development of Connecticut Markets for Recovered Materials (Connecticut: Connecticut Department of Economic Development, 4 October 1989).

(6) McEntee, Ken, "The Current and Future PaperRecycling Market," Resource Recovery, November 1990.

(7) Ibid.

(8) Paper Recycling: The View to 1995, Summary Report (New York. New York American Paper Institute, February 1990).

(9) Markets for Selected Postconsumer Waste Paper Grades (Washington, D C US Environmental Protection Agency, Office of Solid Waste, March 1990).

(IO) Ibid.

(3) Paper Recycling: The View to 1995, Summary Report (New York. New York: American Paper Institute, -

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-24 4/1/91 Market Asssssment Analysis Report

3.3 GLASS ~

3.3.1 Description Glass is formed when sand, soda ash, limestone and other ingredients are combined and heated to high temperatures. Glass may be flat (e.g., plate or window glass) or formed into containers. Different types and colors of glass require different fumace mixes or chemical compositions. Consequently, the use of recycled glass in new glass production requires the same type and color of glass. The only post-consumer glass type for which markets exist is container - glass.

3.3.2 Market Structure Container glass may be clear ( i t . , flint), amber (Le., brown) or green. End users have a preference for clear secondary container glass because most of the US bottling market uses clear glass. Amber containers have the next highest demand. and green, the least. Since recycled container glass is used to make new bottles and jars, end users require that the glass be color separated. Due to the relative impossibility of sorting broken mixed-color containers, such glass is of little value to the glass container-making industry and the processors who supply it.

The major ingredients in container glass are sand, soda ash, limestone. feldspar and. increasingly. recycled glass (i.e., cullet). The ingredients are heated to high temperatures (approximately 2800 degrees Fahrenheit) and formed into containers. Increasing the percent of recycled glass as an ingredient decreases the energy required to produce melting temperatures. E.V. Geouge, of Ball Incon, reports that a seven percent mix of recycled glass required 4.5 million Btu’s to produce melting temperatures while 3.9 million Btu’s were needed with a thirty percent mix (1). The US Congress Ofice of Technology estimates that only one-half to two-thirds of the energy is required to melt cullet. Such energy savings are, to some extent, capable of offsetting higher cullet prices which reflect more rigorous sorting and processing (2). Recycled color-sorted cullet is usually crushed and screened before introduction to the fumace.

The amount of each ingredient used is based on a formula selected to produce a desired output. The chemistry of individual ingredients may fluctuate, requiring adjustments to the formula. Such is the case with sand, which will vary in chemical composition. Once an appropriate mix has been established, it is economically desirable to maintain that mix until circumstances require a change.

The recycled glass portion of a fumace mix is determined by the consistent availability of recycled glass of a sufficient quality. For example, if a glass producer receives sufficient quantities of recycled glass five days per week to allow an 18 percent fumace mix, a one-time or short-term influx of greater quantities will not cause a change in the fumace mix. A producer will seek a level which can be consistently maintained.

Broken. mixed-color container glass is considered contamination by most end users. Additional contaminants include ceramics, metal, flat glass (e.g., window pane, automotive glass), asphalt, stones and light bulbs. Paper labels are usually acceptable for end users. Metal caps and rings are furnace contaminants but can be removed in processing systems. Some facilities separate ferrous metal contaminants using electromagnets and remove paper and aluminum with air vacuums.

and glasphalt. Glasphalt is the use of crushed glass as an aggregate material in asphalt. Federal initiatives have stimulated experimentation with the use of recycled cullet in fiberglass insulation. Additionally, a Michigan firm has successfully used crushed glass, packed in fabric sleeves. as a replacement for perforated plastic pipe in underdrain systems.

Demand for post-consumer cullet by the fiberglass industry is only beginning to develop. Fiberglass companies often use post-industrial cullet generated within the glass industry. EPA guidelines for fiberglass insulation purchases by the federal government do not require a specific recovered materials content but do give preference to products which contain recycled materials. Other insulation materials have a relatively high post-industrial

Page 3-25 NC Recyding Market Development Strategic Plan Project UNCKRE Market Asssssment AnaJyss Report 411191

Containerglass may beused to makenew containers, glass beads (which provide reflective characteristics in signs) -

-

recycled content however, the industry has been reluctant to increase its use of post-consumer cullet because of fumace problems related to mixed glass melt (3).

Figure 3.3.1 presents the results of a supply and demand analysis forcullet for the years 1990 through 2000. The figure portraystheunbalanced demand fordifferent colorsof cullet withclearglass showing a significant advantage (4). This is due to the greater number of products marketed in clear containers and the relative flexibility in using clear cullet in products of a variety of colors.

Prices for f l i t , amber, green and mixed glass cullet are presented in Appendix D for both mid-atlantic and southeastem states. In the mid-atlantic states, prices paid by processors for all colors of cullet, except mixed, averaged between $17 and $20 per ton The price of mixed glass was consistently $10 per ton throughout the period. In the southeastem states, including North Carolina, prices paid by processors were considerably higher, averaging about $24 per ton for flint, amber and green cullet (5).

Prices paid by manufacturers in the mid-atlantic states averaged $58 per ton for flint cullet and about $50 per ton for amber and green cullet In the southeastem states, prices paid by manufacturers were considerably higher for f l i t and amber cullet, or about $70 per ton. The price for green glass was less, averaging $33 per ton forthe year. At the time of this writing, end users serving North Camlina were paying $50-55 for color-separated cullet.

Prices paid for cullet are influenced by the proximity of the supply of recycled bottles to end users of cullet. Transportation costs for shipping cullet from processor to manufacturer are higher than for other lighter secondary materials. Accordingly, there is a downward pressure on prices paid by processors if end-user markets are longer distances away. Because there are very few manufacturers of green glass in the United States, processor prices for green glass can be quite low in some areas of the country. G&n cullet is often shipped great distances by rail. Similarly, prices paid by manufactures for cullet can vary depending on the proximity of plants to populous urban centers with well-developed glass recycling programs.

Prices paid for mixed cullet tends to be uniformly low because of its very limited application in higher value end products like containers. If cullet is used in the makeup of asphalt, it must compete in price with low cost virgin materials. End markets for mixed cullet must therefore be quite local for transportation costs to remain below the price of the material.

Unlike the secondary aluminum market which also supplies the beverage container industry, prices for cullet do not exhibit the same seasonality common to aluminum. This is due to the fact that only a small portion of end-use glass is used as containers for beverages with strong seasonal demand. Very little cullet is either imported or exported to or from the United States.

Residential container glass may be recovered through curbside collection programs, and drop-off and buy-back centers. Color separation of glass is easily accommodated at drop-off and buy-back centers. Curbside collection systems usually require additional color separation at a centralized facility. Due to its weight and propensity to break, container glass provides special challenges to collectors.

3.3.3 Markets Serving North Carolina For the NC region, the manufacture of new glass containers is the only end use identified. There are seven glass container manufacturers in the region, four in North Carolina and thm in adjacent states. Owens-Brockway operates facilities in Winston-Salem. NC; Danville, VA; and Atlanta, GA. Ball-Incon produces glass containers

in Wilson, NC. in Henderson and Asheville, NC: and Laurens, SC. American National Can (Foster-Forbes Glass) has a facility -

UNCITRE NC Recyding Market Development Strategic Plan Pmjed Page 3-26 41191 Market Assassment Analysis Report

Figure 3.3.2 displays the type of containers produced at each facility.

Figure 3.3.2 Container Glass Produced by End Users Serving Notth Carolina

Comwny FacllHy Containers Produced Location by Color

(xvens-Brodcway WinstorrSakm. NC Clear, brown Danville, VA Clear Atlanta, GA Clear, bmm, green

Foster Forbes Wilson, NC Clear, bmm

Ball-lmn Henderson, NC Clear, bown Asheville, NC Clear Laurens, SC Clear

Page 3-27 NC Recyding Market Development Sbategic Plan Project UNCITRE Market Assessment Anaiysis Report 4/1/91

The Tidewater region shows the least number of processors in the state, especially the northeastern portions which are entirely void of processors. This may prove problematic for handlers and public collection programs. In the absence of processor infrastructure, handlers and public collection syaems may need to develop a higher level of processing capability than would ordinarily be required.

The OWR Recycler Database identifies 53 handlers in North Carolina. The northeastern Tidewater region possesses few private handlers. However, this does not mean that glass is not recovered in this region. The public sector is recovering glass in many areas. Glass may be recovered using curbside collection, drop-off and buy-back centers, and commercial collection from restaurants and bars.

Although 19 businesses in North Carolina report that they are brokers, none of these provides brokerage services exclusively. It can be assumed that few of these businesses act as true brokers, and most only broker materials which they also handIe or process.

3.3.4 Conclusions The primary end market for glass in N o m Carolina is in the manufacture of glass containers. This industry utilizes color-separated recycled glass containers provided by processors, handlers and public sector recycling programs. End users prefer glass which is free of contaminants, primarily metals and mixed colors. A glass container manufacturing plant will use as much contaminant-free recycled glass as can be supplied on a continuous basis. The recycled glass is combined with a mix of sand, soda ash and other ingredients, and melted to form new containers. The use of recycled glass significantly reduces energy costs associated with production.

North Carolina has four end users within the state and three in adjacent states. With four glass container-producing facilities within the state, North Carolina possesses a proportionately high share of the 80 plants existingnationally (1.6 plants per state is the national average).

Although no plant expansions are planned, all of NC's end users express a desire to increase their consumption of recycled glass containers. Currently, that consumption level is 18 to 38 percent of total feedstock. If sufficient quantities of contaminant-free recycled glass could be consistently supplied, 50 to 70 percent levels could be realized. A gap exists in the demand for different colors of glass, with clear (is., flint) in highest demand and green having the least demand.

The Tidewater region contains the least number of processors. handlers and brokers. Although the other regions possess higher numbers of these businesses, it is not clear that sufficient infrasaucture exists to supply end users with additional quantities of high quality recycled glass containers. The most critical need is for processors that possess the more advanced systems capable of minimizing contaminants.

Mixed glass cullet remains problematic to market. Limited demand exists in other parts of the country for mixed cullet in the production of glasphalt and glass beads. Potential may also exist for consumption of post-consumer glass cullet in the manufacture of Fiberglass; however, development of processing capability will be required to remove contaminants and produce feedstock meeting fiberglass industry specifications.

Green glass will continue to be a problem because more green glass is imported that can be consumed in US markets.

UNCITRE NC Recyding Market Development Sb-ategic Pbn Project Page 3-28 411191 Market Assassment Analysis Report

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Page 349 NC Recyding M


UNC-ITRE 4/1/91

Market Assessm

ent Analysis Report

RECYCLING BUSIYESSES SERVIKG NORTH CAROLINA

(Reported as of March 1,1991)

G l a s s

*=A symbol represents one or more recycling busineses of the same type located in the same city

&mpanies are prioritized by type of busines End User. Pr-r. Handler. Broker

P'

Rodred Dy Nc-lrRE sars OWR Recydc 3ru:o-y 3alsou

UNCITRE NC Recyding Market Development Sbategic Plan Project FIGURE 3.3.3 4/1/91 Market Assgssment Analysis Report Page 3-30

UNCITRE 4/1/91

FIGURE 3.3.4 Page 3-31

NC Recyding Market Development Strategic Plan Project Market Assessment Analysis Report

FIGURE 3.3.5

RECYCLING BUSINESSES ACCEPTING GLASS MATERIALS

~

~

ENDUSERS - Glisson's Enterprises (Greenville, NC) [HP]

- American Naf'l. Can, Foster-Forbes Glass (Wilson, NC) WPEJ - Goldsboro Iron 8 Metal Co. (Goldsboro, NC) p P ]

- Ball-lncon Glass Packaging Corp. (Asheville. NC) [EJ - Halilax Recyding, lnci (Roanoke Rapids, NC) PPI

- Owens-Brodnvay GlarsContainers. Inc. (Winston-Salem,NC) [El - Hickory Saap 8 Iron Metal Co. (Hickory, NC) [HP]

* PROCESSORS - lredell County Recyding Center, Inc. (Statesville, NC) PHP]

- Allen Recyding Center (Henderson, NC) [HP) - K 8 L Saap Service. Inc. (Raleigh, NC) WP]

- Allstale Glass Redaiming Corp. (Perry, GA) PHP] - MER Recyding (Durham, NC) [HP]

- Asheville Waste Paper Co., Inc. (Asheville, NC) PHP]

- Atvpical Recyclers (Winston-Salem, NC) [HP]

- Bish Enterprises, Inc. (Siler Cay, NC) [HP]

- Bruce's Iron 8 Metal, Inc. (Gastonia, NC) [PI

- Meddenburg County Recyding, Inc. (Charlotte, NC) [PI

- Orange Recycling Services, Inc. (Chaps1 Hill, NC) pHP]

- Rainbow Recycling 8 Botanicals (West JeHerson, NC) [HP]

- ReliaMe Dispal Service, Inc. (Edenton, NC) [HP]

- Bryant Wvage Co., Inc. (Madison Heights. VA) PHP] - Rocky Mount Recyders, Inc. (Rocky Mount, NC) [PI

- C 8 C Saap Iron 8 Metal, Inc. (Kings Mountain, NC) [PI

- Cohen 8 Green Salvage Co., Inc. (Fayetteville, NC) PHP]

- Durbin Paper Stock Co. (Charlotte, NC) BHP]

- Southern Maintenance/Recyding (Canton, NC) [HP]

- Southern Metals Recyding, Inc. (Wlmington, NC) [HP]

- Sun Beh Industrk, Inc. (Roanoke Rapids, NC) pHP]

- ECOS Recyding (Chapel Hill, NC) [HPl

- Fairfield County Redemption (Charlotte, NC) [HP]

- GDS Recycling Services (Conover, NC) PHP]

- Sun Belt Recycling (Lexington, NC) pP1


- Unhed Metal Recyclers (Kernersville. NC) pHP]

\E I End User; P = Processor; H .Handler; B -Broker]

UNCITRE NC Recyding Market Dsvelopment Sbategic Plan Project Page 3-32 4/1/91 Recydable Materials Market Report

Glass (cont'd)

- Vaughan's Recyding (Pisgah Forest, NC) JBHP]

- Wagram Paper St&, Inc. (Wagram, NC) JBHP]

- Waste Managemenlol Cenlral Carolina (Abemarle, NC) [PI

- Webb Metah, Lld. (Dallas, NC) [HP]

- Websler Enterprises (Webster. NC) [HP]

- Ziglar Distrbuling Co. (Winston-Salem, NC) [HP]

[E = End User; P I Processor; H I Handler; B = Broker]

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Glass (cont'd)

HANDLERS


- Aluminum Can Recyclers (Goldsboro, NC) [HI

- Wallaca Recyding Co. (Granite Quarry, NC) [HI

- Washington Recyding, Inc. (Washington, NC) p]

- Waste Industries, Inc. (Wilmingion, NC) [HI

- Walauga County Recyding Center (Boone, NC) p]

- Betsy JeH Penn 4-H Educational Center (ReUsviile, NC) [HI

- C.I.R.C.L.E.(Creedmwr,NC)[H]

- Charie's Scrap Metal (Dana, NC) [HI

- Curb Waste 8 Recyde, Inc. (Hendenonville, NC) [BH]

- Eaton Recyding Co. (Wnston-S&m. NC) [HI

- Gold Leaf Recyding Co. (Wilson, NC) [BH]

- Greer Aluminum Recyding (Reidsvlle, NC) [HI

- Lumbelton Recyding Co., Inc. (Lumberton. NC) [HI

- Morrison's Recycling (Elkin, NC) [BH]

- Mount Airy Iron 8 Metal CC. (Mount Airy, NC) [HI

- Rainbow News (Winston-Salem, NC) [HI

- ReUselt Recyding (Salisbury, NC) M

- Recyde for Prom (Wwton-Salem, NC) [HI

- Recyding Oepct (Tar Heel, NC) [BH]

- Ridts Garbage SeMce, Inc. (Raleigh, NC) [HI

- Sampson County Recyding Center (Turkey, NC) [BH]

- Sandhills Recyding (Southem Pines, NC) [HI

- Southeastern Recycling (Salisbury, NC) [BH]

I End User; P = Processor; HI Handler; B - Broker]

UNCITRE NC Recyding Market Development Shatqic Pkn Project Page 3-34 411191 Recydable Materials Market Report

References ~

(1) Solid Waste Reduction andRecycling: Methods andMarkets, Conference Proceedings (North Carolina: Westem ~

North CarolinaTomorrow, 1989).

(2) Maryland Recyclable Material Market Study: 11 (Maryland: Department of Environment, 1990).

(3) Apotheker, Steve, "Fiberglass Manufacturers Revisit Cullet," Resource Recycling, June 1990.

(4) Maryland Recyclable Marerial Market Sfudy: 11 (Maryland: Department of Environment. 1990).

(5) Misner. Michael, "Market Prices for Recyclables - 1990," Recycling Times, 1990.

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Page 3-35 NC Recyding Market Development Strategic Plan Project UNCITRE Market ASbSSment Analysis Report 411191

3.4 METALS

3.4.1 Description It is estimated that metals comprise 9 percent (by weight) of the municipal solid waste generated in the United States (1). Metals have been recycled for almost a century. According to the Institute for Scrap Recycling Industries, 123.6 million tons of metal goods (excluding precious) were produced in 1988. Of that mount, 55.2 million tons were recovered, or 45 percent of all metals.

The amount of scrap reclaimed represents an enormous savings in energy, natural resources and landfill space, as shown below (21:

- 74 percent savings and energy

- 90 percent savings in virgin materials use

- 86 percent reduction in air pollution

- 40 percent reduction in water use - 76 percent reduction in water pollution

- 97 percent reduction in mining wastes

- 105 percent reduction in consumer waste generated

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Metals are generally classified as either ferrous (Le.. magnetic, containing iron), or nonferrous (Le., nonmagnetic, containing little iron).

Ferrous metals include the following subcategories: automobiles, steel containers, white goods and other scrap iron and steel. Automobiles include both car bodies and automotive parts. Steel containers include tin cans (i.e., steel cans coated electrolytically with a thin layer of tin to prevent rusting and food contamination) and bimetal cans (i.e., tin-coated steel cans with aluminum tops). White goods are large household appliances. Remaining scrap iron and steel include primarily post-industrial metals. such as structural steel, steel punchings, steel tumings and iron brings.

Major categories of nonferrous metals to be discussed in this report are aluminum, batteries and other nonferrous metals, such as copper, lead, zinc and nickeUstainless. Nonferrous scrap comes from a wide variety of sources including residences, food and beverage establishments, industrial plants, government facilities, builders, farms, auto and building dismantlers and airlines. Nonferrous metal value is tied to the US economy. In 1988. nonferrous scrap exports soared, reflecting both rising metals prices and a continuing strong world economy. Some nonferrous metals require an extensive amount of processing; however, their high value renders their processing economically feasible.

3.4.2 Market Structure The demand-driven metals industry does not have a formalized structure, but is dependent on numerous small companies and individuals who recover and sell their material to brokers or handlers. Handlers or brokers identify the scrap components and sort or classify them by grade. then transport the material to a processor. Processors shear, cut chop, shred, melt or Sweat the scrap. then pack the material for shipment in boxes, bales, bundles, drums or briquettes. Processing methods vary according to end-user specifications, the nature and value of the material, and processing costs. End users purchase the scrap from the processors or intermediate metallic usen to manufacture semifinished metal goods which are sold to factories making finished industrial and consumer goods (3).

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UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-36 411191 Recydable Materials Market Assessment Report

Duetotheshiftawayfromsteeltoothermetals,ironscrapmillshaveswitched tohighereKiciencyelectricfumaces. The scrap industry has benefitted from the switch from the basic oxygen furnace to electric arc furnace in the production of steel. The United States produces 40 percent of its steel with electric arc furnaces, which are charged with 100 percent scrap steel (4). As the older oxygen fumaces are shut down, newer arc fumaces are put in place, and the percentage of scrap metal able to be used increases.

Another factor which has increased the demand for scrap metal is the decline in the production of home scrap ( i t . , steel left over from processing fdshed products) due to advancements in-plant waste reduction. With the decline of home scrap has come an increase in the need for purchasing scrap outside the factory (5).

Figure 3.4.1 portrays total scrap consumption levels for six grades of metal in 1988 (6). Scrap metal consumption levels in 1988 were greater than in 1978 for all metals except zinc. The same is true for scrap market share values. However, periodic declines in consumption occurred for selected grades over the course of that 10-yesr period.

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Figure 3.4.1 Metal Consumption in 1988

(m’llions of tons)

Grade Estimated Total scrap scrap Market Consumption Consumption Share

Fetmus 1 09.20 49.60 45.4%

Aluminum 6.90 2.50 31.5%

Copper 3.30 1.40 42.9%

Lead 1.40 .75 55.Ph

Nickle 1.60 .79 50.G%

zinc 1.20 .17 14.0%

Total 123.6 55.2 45.0%

Swrm: IffitiMe for Scrap Recydinyln$sbiies, I, Fads, 1988 Yearbmk: A Summay of Ferrous, Nonferrous Mefals, Paperand ex7ila StaNSli Washngton, DC. 1989.

Page 3-37 NC Recycling Market Development Sbategic Plan Project UNC-ITRE Recydable Materials Market Assessment Report 4/1/91

Ferrous Metals Ferrous metals are the most recycled metals today. Ferrous scrap is gathered by scrap processors and sold primarily to steel mills and iron and steel foundries. A well-established industry has developed to process scrap to the steel industry’s specifications. In 1988, 109.2 million tons of ferrous metals were generated, and 49.6 million tons of scrap were recovered. The national overall ferrous metals recycling rate is over 45 percent (7). Approximately 3 million short tons of scrap were exported to foreign countries.

Automobiles contain many recyclable materials including ferrous scrap, steel, tires, batteries, plastic, antifreeze and motor oil. A well-defined set of sellers and buyers make up the automobile recycling system. About 92 percent of unregistered vehicles are recovered by the automobile recycling industry. In 1989,11.5 million cars. buses and trucks were processed by the 15,000 existing US auto dismantlers. Auto dismantlers drain vehicles of their fluids and recover all the reusable materials. The vehicles are then crushed and processed for shredding, removal of non-ferrous products and baling.

Steel cans are primarily used for food products; however, they are also used for beverage containers. motor oil. toiletries and household chemicals. Most of the demand for steel cans comes from steel producers and detinning mills. Bimetal beverage cans have a small share of the beverage container market compared to aluminum cans. Bi-metal cans can be marketed to ferrous processors who sell them to steel mills. Plastic coatings on cans and other contaminants cause the processed steel to be a low-grade source of ferrous scrap (8). However, bi-metd container manufacturers offer subsidies to raise their price above their intrinsic value as scrap to promote can recycling (9).

Historically, steeUtin can demand has beenliited due to the tin content and low quality. However, new detinning and high-tech steel mills have caused an increase in demand for the product Steelhiin-plated steel cans are not as profitable for steel mills to consume because the tin affects the chemistry of the steel and the melting process. Detinning mills remove the tin and sell the cans as high-grade scrap to steel producers. Major markets of unprocessed steeUtin cans are local processors rather than the mills due to high transportation costs limiting the economical transport of loose cans to 25-50 miles (10). As long as the cans are not overly contaminated with food or moisture, they will be accepted, flat or loose. Paper labels are not a problem. Hazardous waste, enamel paints, other metals, oils and other contaminants can hinder bimetal cans from being marketed.

Bimetal beverage cans may be loose, flattened, shredded, baled or briquetted (densified cubes). They are usually shredded, and the steel is magnetically separated from the aluminum. A 1988 estimate of steel cans in the municipal solid waste stream was 3.5 million tons (1 1).

White goods include large household appliances such as dishwashers, ovens, washing machines, refrigerators and freezers. About 2.1 million tons (75 percent) of white goods are collected and processed nationwide. A network of processors shred and bale ferrous white goods prior to selling the scrap to steel mills. Usually such processors are in business primarily to process automobiles. Nonmetallic materials inherent in white goods such as plastic and insulation are removed through magnetic separation. This material, calledfluff, comprises up to 40 percent of some appliances and must be landfilled.

Due to the bulky nature of unprocessed appliances and auto scrap, transportation costs are high. Most of the waste is thus processed locally because it is not cost efficient to transport to another region. Due to the intense competition within the scrap recycling industry, processors and end users do not give figures regarding the amount of scrap

Many processors do not handle white goods or accept them only with capacitors removed due to the hazardous waste associated with them. PCBs in capacitors must be disposed of according to national legislation. Chlorofluorocarbons (CFCs). used in refrigerators and freezers for cooling, are also present in the insulating foam used in appliances. These chemical liabilities against the processors have proved to make recycling of these goods difficult. However, some processors and brokers are willing to accept white goods at this time.

In the 1970s. the PCBs contained in the capacitors of some appliances were found to be carcinogenic. Because of resultant EPA regulations and environmental concems, most processors require the capacitors to be removed prior to their acceptance of white goods. The high costs relative to the product value associated with this process and

UNClTRE NC Recyding Market Development Strategic Plan Project Page 3-38 4/1/91 Recydable Materials Market Assessment Report

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recycled. Although the market is present, quantifying amounts processed is difficult. -

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with the disposal of the capacitors are inhibiting the recycling of white goods. Additionally, transportation costs make it difficult to economically haul white goods over 30 miles prior to processing.

Scrap Iron and Steel Materials in addition to automobiles, steel cans and white goods (which are primarily post-consumer in nature) comprise the majority of all ferrous metals recycled. Sources for such metal are manufacturing firms, machine shops, steel product distributors and metal fabricators. Scrap metal from these sources have been recycled for many years and rarely enter the solid waste stream.

Nonferrous Metals In 1988, 3.6 million tons of nonferrous metals were generated, and 1.5 million tons were recovered (12). Recovering these materials promotes the substantial energy savings needed to process new materials, as shown in Figure 3.4.2.

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Figure 3.4.2 Nonferrous Metal Recycling Energy Savings

~ e c y c ~ e d Materials Estimated Energy Savings

Alumnum 95%

Copper 85%

Lead 65%

Zinc 60%

Source: Phoenix (XtMSrly.

Aluminum recycling has been growing at a fairly high rate due to the strong value of the metal as well as the high price of primary production. National consumption and scrap market share of nonferrous metals can be found in Figure 3.4.1. Total aluminum consumption in 1988 was 6.9 million short tons. Total US aluminum scrap consumption was approximately 2.5 million tons, or 31.5 percent of all aluminum consumed.

Over 90 percent of the crude bauxite (i.e., the ore from which aluminum is refined) used in the United States is imported (13). Primary smelting capacity is likely to decline in coming years because the construction of new primary aluminum smelters is unlikely, and existing operations may close due to obsolescence. The secondary aluminum industry currently has 34 producers which operate 40 plants in several states. Its total capacity is 1.25 million tons (14). The net result is a strong market for scrap aluminum.

Although the 1980s produced a strong economy and high aluminum demand, no added production capacity is planned until 1992 (15).

The aluminum can industry claimed a 54.6 percent recycling rate in 1988. or 42.5 billion cans. The industry has targeted a 75 percent recovery rate by 1995 (16). The aluminum industry believes it has saved approximately 7.5 kw hours of electricity per pound, which is a 95 percent energy savings compared with aluminum produced from bauxite (17).

Aluminum was first used for beverage containers in the mid-1960s when the beverage container market was dominated by bimetal cans. Since then, aluminum’s share of the beverage container market has grown from 2 to 96.4 percent in 1989 because of its price and handling characteristics.

Page 3-39 NC Recyding Market Development Sbategic Plan Project UNCITRE Recydable Materids Market Assessment Report 4\1/91

Used aluminum beverage containers (UBC) are composed of two different alloys. Body stock, which is the main part of the container, has a much lower magnesium content than does the top, which must have performance characteristics to support the pull tab (18).

UBC scrap can be processed in three different ways: creating new can sheet, remelting into secondary ingot or exporting for remelting in other countries (19). Other items produced include foil, pots, pans, appliances, lawn furniture, building and construction products, and transportation products.

Demand for UBC has been increasing over the last several years as aluminum companies found that it made more

aluminum ingot plus the required alloying agents to produce can sheet ($52 per Ib. vs. $.77 for remelt UBC), the production flexibility associated with primary ingot’s purity results in a premium open market price of $.80 per pound. Remelting capacity has increased since 1987 and is expected to continue to do so in the form of plant expansions and new firms coming on lie (20).

The price paid for UBC can be affected from several quarters. However, a rule of thumb in the industry suggests that UBC price generally runs at about a $.20 per pound below that for primary ingot. This discount generally reflects the cost of UBC transportation, remelt weight loss (about 15 percent), energy and labor. Aluminum companies like to see the price of intermediate ingot from UBC remelting trade at aprice just below that for primary ingot in order to maintain steady demand for UBC primary ingot. If the open market price for primary ingot were to fall because of oversupply or a drop off in demand, the price of UBC would have to fall in order to maintain this relationship. However, a decrease on UBC price that is too dramatic might reduce recycling rates. Some in the industry feel that street threshold price of $.27 is necessary in order to maintain interest in collecting and processing cans (21).

Falling UBC prices also tend to spur export demand, especially to Japan, the largest importer of unmelted UBC. A siphoning of UBC to foreign markets tends to bid up the price on domestic markets.

Concem over the substitutability of aluminum for beverage containers sets certain upper limits on UBC prices. If increasing primary ingot prices were to draw can sheet prices upward, upward pressure would in tum be exerted on the price of UBC. However, fearing that beverage manufacturers might substitute tin plate for aluminum can sheet if the price goes too high, aluminum companies have preferred to hold down the price of can sheet to a competitive level (22).

Prices for UBC tend to be seasonal. Orders for aluminum beverage cans are highest in the spring when beverage companies begin building their product inventories for summer sales. Demand for UBC is greatest in the winter when aluminum companies are amassing feedstock for can sheet needed to fill anticipated can orders. Prices tend to be highest in the winter and lower in late summer when can collection from summer beverage consumption is highest

Figure 3.4.3 presents toll prices for truckload quantities of UBC for the IO-year period ending in 1989. Prices were highest during the 1988-89 period when primary ingot prices were at high levels (23). Prices in 1990 are presented in Appendix D. In 1990, prices paid by aluminum companies averaged 6.48 per pound, with a high of $.56 and a low of S.42. Street prices in 1990 averaged $.40 per pound, with a high of $.48 and a low of 16.30 (24).

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economic sense to use remelt UBC than virgin aluminum for can sheet While it costs less to use primary (virgin) -

UNCITRE NC Recyding Market Development Slrategic Plan Project Page 3-40 4/1/91 Recydable Malerials Market Assessment Report

Exports of UBC for the period 1983 to 1989 are presented in Figure 3.4.4. Exports of UBC showed a steady increase throughout the period, from 3 million pounds in 1983 to almost 77 million pounds in 1989. Japan is the largest foreign consumer of US UBC, purchasing nearly 43 percent of all UBC exports in 1988. As exports are small compared to domestic consumption of UBC, its role is rather small (25).

Figure 3.4.4 Exports of Used Beverage Cans (UCBs)

Year

1983 1984 1985 1986 1987 1988 1989

3,000 3,800

13,814 13,480 60.500 78,600 76,600

Batteries contain metallic elements which conduct electricity. The following batteries are profiled below: lead acid, household, nickel-cadmium and other batteries. Lead acid batteries weigh an average of 36 pounds. Each contains approximately 18 pounds of recoverable lead, 1 gallon of sulfuric acid, 3 pounds of casing, 3 pounds of PVC, rubber separators, and 3 pounds of sulfates and oxates to which the lead is bound. Lead and sulfuric acid are both considered hazardous materials, causing concern about potential liabilities.

Approximately 60 percent of the lead in the world market goes into batteries. Domestically, batteries comprise an even greater portion of the market: 75 percent. Much of the lead industry has switched f” primary to secondary lead production as it has commanded an increasing share of the lead market.

Household batteries include two categories: primary (Le., disposable) and secondary (i.e.. rechargeable). The types vary from alkaline to carbon zinc to mercury to silver to nickel-cadmium. Not all batteries are recyclable. Many containing mercury and silver are currently marketed to end users who extract the metals. Many of the metals contained in batteries are contaminants in incinerator air emissions and ash, and can cause groundwater contamination through leaching at landfills and composting facilities. Removal from the waste stream is environmentally sound regardless of market value. Over 2.3 billion household dry cell batteries are sold in the United States each year, 75 percent of which are alkaline (26).

Nickel-cadmium batteries are the principal type of battery used to power rechargeable appliances such as drills, mixers, portable telephones, hand-held vacuum cleaners and razors. They comprise about 10 to 15 percent of consumer batteries produced (27). Cadmium is an electrode material in the batteries. Its use cannot be reduced

however, to be used as substitutes.

Other household batteries contain silver and mercury in silver oxide and mercuric oxide button cells. Mercury in batteries serves a two-fold purpose: a corrosion inhibitor and increasing service performance. Reclaimed mercury may be used by manufacturers of batteries, thermometers, instruments, dental supplies, switches and pesticides, but the current use of mercury in batteries is under 1,ooO tons annually and declining (28).

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without proportionally reducing the energy content of the batteries. Other materials are under development, -

Because it is difficult to distinguish mercuric oxide button batteries from other button batteries and due to safety considerations, it has been suggested that all types of button batteries be collected together rather than limiting efforts to only mercuric oxide batteries (29).

Mercuric oxide batteries contain more mercury than all consumer batteries combined. To reduce mercury, these batteries should be the focus of recycling efforts. The five types of batteries containing mercury are listed in Figure 3.4.5.

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Figure 3.4.5 Types of Batteries Containing Mercury -

Battery Type I 1 Principle Sizes

Alkaline Carbon zinc Mercuric oxae Sitver oxide Zinc air

D, c, AA, AM, 9-v D, c, A4 AM, 9-v Button cells Button cells Button cells

I I Sourca: RecylngTcday.Apd 1989.

Other Nonferrous Copper is the basis for brass, bronze, aluminum bronze and other alloys. Much of the scrap comes from building demolition or replacement of copper fixtures and components. Over 25 percent of the copper consumed in the United States in 1988 was refined into secondary copper.

Lead is mainly used in lead acid storage batteries and other alloys. The majority of recovered lead comes from scrapped batteries. Secondary lead production has increased from 47 percent of domestic refmed lead output in 1975 to 61 percent in 1989 (30).

Most of the domestic nickel production is attributable to stainless and heat-resistant steel production. In 1989, scrap nickel aggregated to 45 percent of US nickel consumption.

Zinc is used in many alloys, including bronze, brass, nickel, silver and other metals, to protect them against corrosion. Nineteen percent of the US market went to zinc (31).

3.4.3 Markets Serving North Carolina Scrap metal collected and processed in North Carolina can be profitably marketed anywhere, from in-state to regional to national and even intemational markets. Ferrous metals must move shorter distances due to their lower value, unless a water freight system is available or there is reasonable access to ports.

North Carolina hasone steelmini-mill.FLondaSteelCorp., which is locatedjustnorthof Charlotte and concentrates on producing low value products for regional markets (32). Because mini-mills use electric arc fumaces, 100 percent steel scrap can be used. By contrast, integrated mills use only 20 to 30 percent scrap.

North Carolina does not have any end users of aluminum; however, Virginia, Kentucky, South Carolina and Georgia do have end users. Becauseofthe competitivenatureofthescrapmetalindustry, identifyingeach oftheplayersisanalmostimpossible task. No complete published lists or directories of processors and manufacturers are available as they are with several other recyclable material industries. End users, processors. handlers and brokers identified in the OWR Recycler Database. are listed in Figure 3.4.6 and their locations displayed in Figures 3.4.7 and 3.4.8. Although the number of businesses is larger than those listed in the OWR Recycler Database, identifying additional recyclers in North Carolina and adjacent states was not immediately possible.

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-42 4/1/91 Recydable Materids Market Assessment Report

The NC metals infrastructure generally has an adequate amount of processing capacity, good markets (although not all in-state) and a knowledgeable industry with regard to EPA regulations and environmental concerns.

A gap in the metals manufacturing system exists with regard to steeWi cans. Although Nucor in Darlington. SC: Roanoke Electric Steel in Roanoke, VA; and Florida Steel in Charlotte. NC. are publicized as end users of steel cans, their exclusive brokers are not purchasing additional steeVtin scrap at this time. With no collection system in place to generate the supply of materials, profits are low and the brokering business is less attractive to operate.

Known NC firms handle quantities ranging from 2-3 tons of nitric acid and silver per year to 24,000 tons of nickel

conditions and competition from imports.

End users of scrap metal accept specific goods and produce focused products. For instance, a company accepting copper cathodes and scrap manufactures copper tubing, while another business takes in nickel and cadmium to produce nickel-cadmium batteries. The end users in the state must be very niche-oriented in this competitive market where price and quality play a large role in sales and profit margins.

The scrap metal manufacturers sulveyed desire to recycle as much secondary material as possible. Difficulty in obtaining adequate supply, price fluctuations and stringent requirements are cited as problems for them in increasing the amount of secondary material going into their products.

Regional, national and international competition waxes and wanes depending upon the world economy and amount of material available. For example, Halstead Metal Products in Pine Hall, NC. manufactures copper pipe and recently had been slowing production. Now, however, production and purchasing have increased subsequently, decreasing the amount of copper scrap shipped out of state.

Most f e r " scrap is sent outside the state except for the cast iron sent to Charlotte Pipe and Foundry and the steel sent to Florida Steel. Much of these ferrous metals are marketed to Roanoke, VA; Lynchburg, VA: Troy. AK; Atlanta, GA; and Darlington, SC.

Although some NC processors handle a variety of materials, most specialize in particular alloys or metals.

SteeVtin cans have very limited marketability in the NC area. Manganese steel is an industrial metal which is also difficult to process due to its nonmagnetic qualities (rendering magnetic-separation equipment useless) and negligible markets.

Handlers in North Carolina recover scrap directly from individuals and/or organizations. The handler may be public or private, a non-profit or profit-making company. The material is gathered through curbside collection, drop-off sites or buy-back centers. Some handlers may also be brokers. Transportation of the scrap metal to processors or end users is provided by the handler.

NC handlers are widely distributed across the state with the majority located in the Piedmont region. The Coastal Plain region also appears to have an adequate number of haulers to collect and distribute scrap. The Mountain and Tidewater regions, with twelve and four handlers respectively, have fewer businesses for salvaging scrap.

Present or potential metal generators and handlers in the eastem portion of the state have potential difficulty in accessing the marketplace to sell their metals inventories. Only four processors have been identified in the

end user is located in this eastem region. While there are no brokers in the Tidewater region, four handlers supply recovered scrap.

3.4.4 Conclusion - Representatives of detinning mills indicate a lack in the volume of recovered steel/tii cans. Increasing supplies of recycled cans could stimulate a corresponding growth in detinning volumes which could lead to the construction of new facilities.

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per year. Some of the businesses are planning expansions, while most are leveling production due to slow market -

Tidewater region along the state's east coast to accept materials from brokers or handlers. Additionally, only one -

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Encouraging manufacturers to decrease or eliminate the number of nonessential toxins from their products will help processors and end users by decreasing their liability for these hazardous substances.

Reducing the amount of hazardous materials "designed for recycling" will help to source reduce waste or enable recycling on the front end.

Because many scrap recyclers handle hazardous constituents and have total responsibility for them at the end of the product's lifecycle, new solutions to cleaning up the hazardous waste substances should be investigated. The hazardous substances exist, and negotiations between government and industry will help to balance the competing interests.

Substitution of plastic, aluminum and other materials in products which previously used steel contributes to the intense competition in the industry. An example of this is the substitution of plastic in the automobile and other transportation-related products.

Another example is direct reduced iron (DRI), which is used as a substitute for scrap metal in the form of iron pellets. Metal recyclers are concerned that if substitution becomes more cost effective, it could be a threat to scrap metal. Starting a new business or expanding an existing one is expensive for large-scale technical facilities such as detinning operations or steel mills.

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FIGURE 3.4.6

RECYCLING BUSINESSES ACCEPTING ~

METAL MATERIALS .~

ENDUSERS

- Charbne pipe and Foundry Co. (Chadone, NC) [E]

- Dewey Brothers, Inc. (Goldsboro, NC) [E]

- Foundry SeMce Co. (Kim, NC) [E]

- G. R. Ennis 8 Son Foundry, Inc. (Wilminglon, NC) [E]

- Hallman Foundry, Inc. (Sanlord, NC) [E]

- Halslead Metal Prducts (Pine Hall, NC) [E]

- Hilemn Labs (Greensboro, NC) [BHPE]

- INMETCO (Ellwood, PA) [BHPE]

- NIFE, Inc. (Greenville, NC) [E]

- Salchme (Stalesville, NC) [BHPE]

- Sanders Lead Co., Inc. (lroy, AL) [Ej

- Sloval Foundry, Inc. (Gaslonia, NC) [PE]

- Willard Industries, Inc. (Chadolle, NC) [BHPE]

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- Wysong Castings Division (Greensboro, NC) [PE]

[E I End User; P = Processor; H - Handler; B =Broker]

UNCITRE NC Recycling Market Development Strategic Plan Project Page 3-46 4HBl Recydable Materials Market Report

Metals, (cont'd)

* PROCESSORS

- Adion Auto Salvage, Inc. (Murphy, NC) [PI

- Alcoa Recyding (Maryville, TN) [PI

- Allen Recyding Center (Henderson, NC) [HP]

- American Metal 8 Parts Co., Inc. (Raleigh, NC) [PI

- American Surplus Trading (Fairview, NJ) [HP]

- Amer 8 Brown (Wilson, NC) [PI

- Asheville Waste Paper Co., Inc. (Asheville, NC) [BHP]

- Atvpical Recyclers (Winston-Salem, NC) [HP]

- Auto Salvage 8 Metal Recyding Co. (Farmville, NC) [HP]

- Baal's Auto Salvage (Charlone, NC) [HP]

- Biltmore Iron 8 Metal Co. (Asheville, NC) [BHP]

- Bkh Enterprises, Inc. (Siler Cly. NC) [HP]

- Brenner Iron 8 Metal Co. (Winston-Salem, NC) [PI

- Bruce's Iron 8 Metal, Inc. (Gastonia, NC) [PI

- Bryant Salvage Co., Inc. (Madkon Heights. VA) BHP]

- C a C Swap Iron 8 Metal, Inc. (Kings Mountain, NC) [PI

- C 8 H Metals 8 Satvage, Inc. (Burlington, NC) [HP]

- Cardinal Steel Drum Corp. (Lexington, NC) [PI

- Carolina Recyding (Concord, NC) [HP]

- Charles Bluestone Co. (Charlotte, NC) [BPI

- CharbtteSteei Drum Cop. (Charlotte. NC) [HP]

- Cty Mobile Auto Crushers (Charlotte, NC) [PI

- Cohen 8 Green Salvage Co., Inc. (Fayeneville, NC) [BHP]

- Collins Metal Co. (Forest City, NC) [HP]

- Consolidated Alloys (Charlotte, NC) [HP]

- Cranlord Iron 8 Metal Co. (Sophia, NC) [HP]

- Durbin Paper StockCo. (Charlone, NC) PHP]

- ECOS Recyding (Chapel Hill, NC) [HP]

- Easco Aluminum (Ahoskm, NC) [PI

- Uectronic Recyding (Newark, NJ) [HP]

- Environmental Recycling, Inc. (Raleigh, NC) [BHP]

- Everett Mobile Aula Crushers (Tarboro, NC) [PI

- Fairlield County Redemption (Charlotte, NC) [HP]

- Foils, Inc. (Harrisburg, NC) [PI

- G 8 W Metals, Inc. (Burlington, NC) [HP]

- GDS Recycling Services (Conover, NC) PHP]

- Glisson's Enterprises (Greenville, NC) [HP]

- Goldsboro Iron 8 Metal Co. (Goldsboro, NC) [BPI

- H. F. Ward Metal Salvage, Inc. (Nashville, NC) [PI

- H. K. Krider 8 Son, Inc. (Granhe Quarry, NC) [HP]

- H. W. Thomas Scrap Iron-Metal Ca., Inc. (Durham, NC) [PI

Halilax Recyding, Inc. (Roanoke Rapids, NC) [BPI

~

. ~~

-

-

[E = End User; P - Processor; H -Handler; B I Broker]

Page 3-47 NC Recyding Market Dsvelopment Strategic Plan Project UNCITRE Rn*vrlshlo Mntarialc M i r k d Aceaeemont Rmnrt 411 m,

I

Metals (cont'd)

- Hidtory Suap 8 Iron Metal Ca. (Hidory, NC) [HP]

- Hollmet Recyding Cop. (Knighldale, NC) [HP]

- Holmes Iron 8 Metal. Inc. (East Spencer, NC) [HP]

- Horton Iron 8 Metal Ca., Inc. (Wilminglon, NC) [BHP]

- Industrial &AgticuRuralChemicals, Inc (Red Springs, NC) [PI

- Industrial Foundry 8 Manuladuring Co. (Greensboro, NC) [PI

- Iredell County Recyding Center, Inc. (Stalesville, NC) [BHP]

- J 8 E Salvage (Jacksonville, NC) [BHP]

- K 8 L Suap Service, Inc. (Raleigh, NC) [HP]

- L. Gordon Imn 8 Metal Co. (Stalesville, NC) [BHP]

- Lddlaw Environmental Services (Reidsville, NC) pHP]

- Lee Iron 8 Metal Co., Inc. (Sanlord, NC) [BHP]

- Levin Brothers, Inc. (Burlington, NC) [BHP]

- MER Recyding (Durham, NC) [HP]

- Meddenburg County Rqd ing , Inc. (Charlone, NC) [PI

- Mercury Relining Co., Inc. (Latham, NY) [BHP]

- Metals America (Shelby, NC) [PI

- Ma-South Metals, Inc. (Greenville, NC) [BHP]

- Miles Jennings, Inc. (Elizabeth City, NC) [PI

- Myers Brothers. Inc. (Greensboro, NC) [PI

- N. C. Sahage Co., Inc. (Goldsboro, NC) [pl


- Phillips Recycling, Inc. (Mount Holly, NC) [HP]

- Plyler Paper StockCa. (Charlone, NC) [BHP]

- Pugh Auto CNShing Co. (Lexington, NC) [PI

- Quidtsilver Recyding, Inc. (Brisbane, CA) [PI

- R 8 A Salvage 8 Repair (Kinston, NC) [PI

- Raelord Salvage Co., Inc. (Raelord, NC) [HP]

- Rainbow Recycling 8 Botanicals (West Jefferson, NC) [HP]

- Raymond Goldman 8 Co., Inc. (New Bern, NC) [HP]

- Reliable Disposal Service, Inc. (Edenton, NC) [HP]

- Republic Alloys, Inc. (Charlone, NC) [PI

- ReynoMs Aluminum Recydng CO. (Charbtte, NC) [HP]

- Rockingham Scrap Metal (Rockingham, NC) [HP]

- Rocb Mount Recyders, Inc. (R&Y Mount, NC) [PI

- Rulus Kiser 8 Sons, Inc. (Concord, NC) [HP]

- S. Swarlz 8 Sons, Inc. (Durham. NC) [HP]

- Sampson Salvage Co., Inc. (Clinton, NC) BHP]

- Sdwlholer's. Inc. (Waywsville, NC) [BHP]

- Shulimson Brolhets Co., Inc. (Asheville, NC) [BHP]

- Soulheastern Stainless Steel &Alloys (Charlone, NC) [BPI

- Southern MaintenancelRecyding (Canton, NC) [HP]

- Southern Metals Recyding, Inc. (Whington, !:C) [HP]

- End User; P - Processor; H - Handler; B I Broker]

UNCITRE NC Recyding Market Development Sbategic P b n Project Page 3-48 411191 Recydable Materials Market Report

Metals (cont'd)

- Sun Bell Industries, Inc. (Roanoke Rapids, NC) [BHP]

- Sun Ben Recycliig (Lexington, NC) [BPI


- Swansboro Recyding CO., Inc. (Swansbom, NC) [BHP]

- T T 8 E Iron 8 Metal, Inc. (Gamer. NC) [HP]

- Transformer Salvage, IN. (Gddsboro, NC) [PI

- UNC Redamation (Muberry, FL) [PI

- United Metal Recyclets (Kernersville, NC) [BHP]

- United Scrap, lnc. (Charbtte, NC) [PI

- Vaughan's Recyding (Pwah Forest, NC) [BHP]

- Wagram Paper St&, IN. (Wagram. NC) [BHP]

- Waste Management of Cenlral Carolina (Abemarle, NC) [PI

- Webb Metak, Ltd. (Dallas, NC) [HP]

- Webstar Enterprises (Webstar, NC) [HP]

- Whaey's W i o r Shop (Mount A L ~ , NC) [BPI

- Young's Aulo Center 8 W a g e (Benson, NC) [PI

- Zigkr Distrbuting CO. (Winston-Salem. NC) [HP]

[E - End User; P - Procassor; H - Handler; B = Broker]

Page 3-49 NC Recyding Market Dsvelopment Strategic Plan Project UNCITRE Rxvdahle Materials Market AcsPswnanl Rennrf 411 m,

Metals (cont'd)

* HANDLERS


- Aluminum Can Recyclers (Goldsboro, NC) [HI

- Aluminum Recycling Center (Salisbury, NC) M

- Aluminum Recycling 01 Burlington (Burlington. NC) w]

- Aluminum Recycling of Greensboro (Greensboro, NC) [BH]

- Annstrong Auto Parts CQ., Inc. (Charlotte, NC) [HI

- Auto Pacts 8 Salvage (Fayenevifle, NC) M

- Banery Warehouse 8 Recyding (Greensboro, NC) [HI

- Baucom Banery Setvim (Charlotte, NC) [HI

- Bennens Auto Parts 8 Salvage (Goldsboro, NC) [HI

- Best of Beers (Hickory. NC) M

- Betsy Jell Penn 4-H Educational Center (Reidsville, NC) [HI

- Breaks Saap Iron &Alloys, Inc. (Gaslonia, NC) [BH]

- BNderlSharpe, IN. (Madison, NC) v]

- Bush-Carswell, lnc. (Lenoir, NC) M]

- C 8 D S&age Co. (China Grove, NC) [HI

- C 8 L Scrap Metal, Inc. (Connelly Spring, NC) [HI

- C 8 M Metal Co. (Lincolnton. NC) [HI

- C.I.R.C.L.E.(Creedmoor,NC)[H]

- Cape Fear Recyclers, Inc. (Wilmington, NC) [HI

- Carl's Scrap Metals (Norwood, NC) [HI

- Carolina Meld Co. (Jacksonville, NC) [H]

- Charlie's Scrap Metal (Dana, NC) [HI

- Clevehnd County Recyding Center (Shelby, NC) [BH]

- Clevehnd Scrap Metal (Cherryville, NC) [HI

- Cox Used Cars (Elm Cay, NC) [HI

- Cumberland Sheltered Workshop (Fayetlevilk NC) [HI

- Curb Waste 8 Recycle, Inc. (Hendersonville, NC) [BH]

- D. H. Griffin Wrecking Co.. Inc. (Greensboro.NC) w]

- Douglas Battery Manuladuring Co. (Winston-Salem, NC) [HI

- Eagle Distribuling Co. (Lumberton, NC) [HI

- Ealon Recyding Co. (Winston-Sdem, NC) [HI

- Edine Recycling Co. (Whltier, NC) [HI

- File's Salvage (Rochell, NC) [HI

- Fisher's Salvage 8 Repair (SI. Pauls, NC) [HI

- Fussell Salvage (La Grange, NC) [BH]

- Gold Leal Recyding Co. (Wilson, NC) [BH]

- Greer Aluminum Recyding (Reidsville, NC) [HI

- Harper Auto Sabage, lnc. (Kinston, NC) [HI

- Hayes Iron &Metal, Inc. (Providence, NC) [HI

- HolliCeld Brothers (Spruce Pine, NC) [BH]

- J'ville Speedway (Jacksonville, NC) [BH]

[E = End User; P I Processor; H -Handler; B I Broker]

UNCITRE NC Recyding Market Derelopment Strategic Phn Project Page 3-50 4/1191 Recydable Materials Market Report

Metals (Cont'd)

- Lonnie's Used Cars 8 S&age Co. (FayeneviUe, NC) [BH]

- Lowe Fur 8 Herb, Inc. (N. Wdkesboro, NC) [H]

- Lowe Hide 8 Metal Co. (N. Wiikesbaro, NC) [HI

- Lumberton Recyding Co., Inc. (Lumberton, NC) [HI

- M 8 M Salvage (Fayeneville, NC) [HI

- Mwre's S m p MetaiCo. (EUenboro, NC) [HI

- Momson's Recycling (Elkin, NC) [BHI

- Mount Airy Iron 8 Metal Co. (Mount Airy, NC) [HI

- Pallon's Scrap Metal (Marion, NC) [HI

- Paul's Aulo Salvage (Goldsbaro, NC) [HI

- Rainbow News (Winston-Salem, NC) [H]

- R~Use-lt Recyding (Sakbury, NC) [HI

- Recyding Depot (Tar Heel, NC) [BH]

- Rid& Garbage Service, Inc. (Raleigh, NC) [HI

- Riddich Recycling (Edenton, NC) [HI

- Rcbm Engineering (Lucama, NC) [HI

- S 8 S Sa!vage, Inc. (Jacksonville, NC) [HI

- Sampson County Recyding Center (Turkey, NC) [BH]

- Sandhills Recyding (Southem Pines, NC) [HI

- Southeastem Recycling (Salisbury, NC) [BH]

- Stanly Salvage (Albemarie, NC) [BH]

- T. H. Davis &Company (Salisbury, NC) [EH]


- Thompson Drum Co. (Charlotte, NC) [BH]

- TC.MS scrap a ~ e t a l CO. amiet et. NC) [HI

- Twins Wire 8 Cable (Statesville, NC) b ]

- Wagner's Automotive (Durham, NC) [BH]

- Wagoner's Car Crushing (Hurdle Mills, NC) [BH]

- Walker's Salvage (Linden, NC) [HI

- Washington Recyding, Inc. (Washington, NC) [HI

- Waste industries, Inc. (Wilmington. NC) [HI

- Watauga County Recyding Center (Bwne, NC) v] - Wotid Resources Co. (McLean, VA) [HI

- Wynne's Auto Salvage (Williamston. NC) [HI

- Young's Auto Center 8 Salvage #2 (Spring Hope, NC) [HI

- Soulhern Metals Co., Inc. (Charbne. NC) [HI

[E I End User; P = Procassor: HI Handler: B - Broker]

Page 3-51 NC Recyding Market Development Sbategic Plan Project UNCITRE Rwvdnhla Mntcialc Market Accetczment Rnnnrt ",,+a,

Metals (Cont’d)

* BROKERS

- Asheville Steel 8 Salvage (Asheville, NC) [B]

- David J. Joseph Co. (Charlolie, NC) [B]

- Hunter Douglas Metals (Roxboro, NC) [E]

- M 8 M Steel Drum Co. (Canton, NC) [B]

- Omnkource Cop. (Lumberlon, NC) [B]

(E = End User; P - Processor; H = Handler; B I Broker]

UNCITRE NC Recyding Market Dsvelopment Strategic Plan Project Page 3-52 4/1/91 Recydable Materials Market Report

RECYCLIKG BUSINESSES SERVIXG NORTH CAROLINA

I (Reported as of March 1,1991)

.. Metal -' \

.Companies are prioritized by type of busin= End User. Processor. Handler, Bmker

/ I

-A symbol represents one or more recyclmg busm- of the Same type located in the Same city

Rmred by VIT-llK 5arm ow R a c y d c SeClO). 2.-

FIGURE 3.4.7 NC Recyding Market Development Strategic Plan Project UNCITRE 4/1/91 Page 3-53 Recydable Materids Market Assessment Report

RECYCLING BUSINESSES SERVING NORTH CAROLINA


Metal

Compniware prioritized by type01 bus inm End Urar. Pmcesor, Handler. h k e r

**A symbol r e p m n t s one or mare mycling busin- of the same type lmld in thesamecity

I Brokers I

References ~

(1) Franklin Associates, Ltd., June 1990, as cited in Characterization of Municipal Solid Waste in rhe US (Washington, DC: US Environmental Protection Agency, Office of Solid Waste, June 1990). pp. E5-7.

(2) Phoenix Quarterly, Fall 1989.

(3) Recycling Nonferrous Scrap Metals (Washington, DC: Institute of Scrap Recycling Industries, Inc.. 1990).

(4) Sreel Can Scrap Industrial Users - Detinners and Steel Mills (Washington, D C Steel Can Recycling Institute, 1 October 1989).

(5)BureauofMinesMinerals Yearbook (Washington, D C US Department of the Interior, Bureau of Mines, 1987).

(6) Facts I988 Yearbook: A Summary of Ferrous, Nonferrous Metals. Paper and Textile Statistics (Washington, DC: Institute of Scrap Recycling Industries, Inc., 1989). p. 8.

(7) bid.

(8) Michigan Secondary Material Marker Development Study. Prepared for the US Environmental Protection Agency by Franklin Associates, Ltd., February 1987.

(9) Maryland Recyclable Material Market Study: II (Maryland: Department of Environment, 1990).

(IO) Michigan Secondary Marerial Marker Development Study, Prepared for the US Environmental Protection Agency by Franklin Associates, Ltd., February 1987.

(1 1) Marker Assessment of Material Mandated for Recovery in Connecticut (Somerville, Massachusetts: Mt. Auburn Associates, 1990).

(12) bid.

(13) Sratisrical Abstract of rhe United States (Washington, DC: US Department of Commerce, Bureau of the Census, 1986).

(14) Michigan Secondnry Material Market Development Study, Prepared for the US Environmental Protection Agency by Franklin Associates, Ltd.. February 1987, p.3-3.

(15) Recycling T o m , April 1989, p. 63.

(16) Michigan Secondary Material Market Development Srudy, Prepared for the US Environmental Protection Agency by Franklin Associates, Ltd., February 1987, p.3-3.

(17) PhoenixQuarterly, Fall 1989.

(IS) Maryland Recyclable Marerial Marker Study: II (Maryland: Department of Environment. 1990).

(19) Apotheker, Steve, "Aluminum: The Times are Changing," Resource Recycling, November 1989. p. 20.

(20) bid.

(21) Recycling Scrap Iron andsfeel (Washington, D C Institute of Scrap Recycling Industries. Inc.. 1990).

(22) bid.

(23) bid.

. (24)lbid.

-

-

(25) Recycling Today. April 1989. p. 63.

Page 3-55 NC Recyding Market Development Strategic Plan Project UNClTRE Recydable Material; Market Assessment Report 4/1/91

(26) bid.

(27) Ibid.

(28) Ibid.

(29) MunicipalSolid Waste News, January 1991.

. - (30) bid.

(31) bid.

(32) Market Assessment of Material Mandated for Recovery in Connecticut (Somerville, Massachusetts: Mt. Aubum Associates, 1990).

-

UNCKRE NC Recyding Market Development Strategic Plan Project Page 3-56 4/1/91 Recydable Material; Market Assessment Report

3.5 PLASTICS ~

3.5.1 Description More than 66 billion pounds of plastics were sold in the United States in 1989. Approximately one-third of all plastic materials make their way to the landfill (about 22 billion pounds, 7 percent by weight, or 18 percent volume of the municipal solid waste stream). Additional plastic waste is in the industrial waste stream, primarily packaging materials such as bags, shrink wrap, pallet wrap, and polystyrene (“styrofoam”) peanuts and otherpacking material. Compared to other indushies utilizing secondary glass, metals or paper, the plastic industry has generally been a low user of recycled materials as feedstock for its production activities. Concem by environmentalists and public policy makers over the increasing presence of plastic products in the municipal solid waste stream has put pressure on the plastic industry to increase its capacity for the utilization of secondary materials. Communities around the United States have instituted bans on the sale of some plastic products or have made their sale contingent upon having local recycling programs in place. In the past few years, this capacity has grown enormously to the extent that many processors complain that cumnt recycling programs cannot fully supply current demand for secondary resins.

All plastics are either rhermosers or rhermoplusrics. Thermosets comprise approximately 20 percent of production. They cannot be easily remelted and reformed and therefore have limited recyclability. Thermoplastics can be remelted and reshaped over and over. These plastics comprise approximately 80 percent of production and are the primary focus of this report (1). There are six major categories of thermoplastic resins: polyethylene teraphthalate (PET), high density polyethylene (HDPE), low density polyethylene (LDPE). polypropylene (PP). polystyrene (PS) and polyvinyl chloride (PVC). Figure 3.5.1 lists the primary sources of each type of resin and products which can be made when they are recycled.

3.5.2 Market Structure Plastic resins are made from petroleum, natural gas and coal derivatives called olefins. The most commonly used olefins are propylene, benzene, toluene and para-xylene. These monomer feedstocks are converted to polymers which are then sold to product manufacturers in the form of pellets, flakes, granules or powder (2). Due to the high cost of converting fuel derivatives to plastics, a limited number of large corporations are involved in performing this activity. These include Amoco Chemical, Arco Chemical, Chevron Chemical, Dow Chemical, Dupont, East” Chemical, Hoechst Celanese, Mobile Chemical, Occidental Chemical and Ukon Carbide (3). All of these companies have been taking a very active role in supporting the development of plastics recycling technologies and programs, and many of them are involved at various stages in obtaining scrap plastics for use as altemative feedstocks.

Outside of the few giants involved in producing virgin plastic resins, thousands of finns exist which further mix and process resins to produce a virtually M i t e range ofplastics products using extrusion, injection molding and blow molding technologies. The demand for recycled resins by US manufacturers is dependant upon the extent to which these resins meet required performance specifications and can be competitive in price relative to virgin materials. Collection and processing must be accomplished at a lower cost than the production of the same resin from virgin materials in order to be economically attractive to end users. Off-spec resins and cull products from

The performance of secondary resins is, to a large extent, a function of the degree of processing that the material has undergone prior to sale. Processing usually involves the removal of non-target resins and other contaminants followed by pelletization (wherein the plastic is melted. additives incoporated, extruded and cut into pellets). For post-consumer materials, often multiple stages of sorting. grinding. washing, screening, air classification and final pelletizing of the scrap plastics are performed to produce a marketable product.

-

resin manufacturers compete with post-consumer resins for low-end (it.., low-value) products. -

Page 3-57 NC Recyding Market Development Strategic Plan Project UNCITRE Recydable Materids Market Assessment Report 411191

In all but one category of plastics, Hong Kong leads all countries in their importation of US scrap plastic. In 1989, Hong Kong bought 60 percent of US ethylene, 83 percent of styrene, 11 percent of vinyl chloride and 60 percent of all unclassified scrap plastic. In all, approximately 33,000 tons of scrap plastic worth over $92 million were exported (4).

This market had been encouraged by the lack of separation technology in the United States. In Hong Kong, for example, the existing labor pool makes it economically viable to separate useful scrap plastic from contaminants

~

(5).

Because the primary market for plastics are Pacific Rim countries, exporters give heaviest use to the West Coast - ports. The following provides a breakdown of points of departure for 1989 (6).

POW of oeparrure PercBnt wried

Ethylene Lor Angeles. CA San Fraffiw. CA 13%

strew Los Angeles. CA 40% Norlok, VA 1Ph New Yolk chy. NY 1 4%

VVfl Chb&* Los I\rgeles, CA NewYOtkCty.NY I 45%

Wh

Olher Plastics Lo5 Algeles. CA 40% NW Yolk Cty. NY %

'E" m*srsusdh l%Q. 'MI hsmr+"d .hpnsnD g m hmqhLes&&"3WY& City. &am: rruazrwcgw." ~DamRwmasd;h+m1994w,i.2.

Recent breakthroughs are being made in recompounding scrap plastic resins through the use of various additives to enhance their physical properties (therefore value) and in converting scrap resins back to their polymeric state to broaden their applications. Probably the biggest development of this nature involves the recent announcement by both Coca-Cola Company and PepsiCo, Inc., that they intend to begin using up to 25 percent post-consumer PET in making new soft drink bottles. The scrap containers will be broken down into their chemical constituents then repolymerized back into a PET resin. This process is expected to meet with the approval of the US Food and Drug Administration, which up to this point has restricted the use of scrap plastics to non-food and drug applications.

There is an increasing trend among processors to handle post-consumer plastics as well as a trend to handle a mixture of scrap plastics. While these trends are in response to the need to generate additional product supply (by making it more convenient and economical to recover post-consumer plastics), there remain two major areas of concem:

1) Dificulry in accurately sorting plastic grades, which is critical for high-end (i.e., high-value) utilization. Of particular concem is separation of potentially damaging PVC from HDPE and PET, and separation of various HDPE grades which have different melting properties and therefore different applications. To assist plastic recyclers with separating plastics by resin type, a voluntary coding system for plastic products was developed. The coding system is as follows:

PET = 1 PP = 5 HPDE = 2 PS = 6 PVC = 3 Mixedplastics = 7 LPDE = 4

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-58 4/1/91 Recydable Materit Market Assessment Report

As is evident with only one code for each resin type, the present coding system does not accurately address all sorting requirements.

2) Ability to obtain post-consumer plastics with acceptable contaminant levels. Dirty material creates excessive wear and potential damage to equipment as well as product quality problems. As a result, purchase of unprocessed post-consumerplastics is often limited to baled material to allow for manual inspection and ease in removing contaminants.

Provided in the following paragraphs is a detailed discussion of the market structure for plastics most likely to be included in govemment-sponsored collection programs, namely PET, HDPE and PVC containers.

PET Approximately 190 million pounds of post-consumer PET were utilized by plastics manufacturers in 1989, up 9 percent from 1988. This was due to substantial increases in processing capacity across the United States, some of which were the result of new partnerships between large polymerhesin manufacturers and waste managemenVrecycling firms (7). FDA’s reversal on its beverage container rule should expand overall demand for post-consumer PET resin even further. There is insignificant export demand for recycled PET due to insufficient capacity for resin production worldwide. Foreign demand has moved widely with the exchange value of the dollar. Processors have indicated that they could market at least twice as much post-consumer PET as they handled in 1988 (8).

As might be noted of other secondary materials markets, the price of post-consumer PET tends to Follow the price of virgin material, with some level of discount. In 1990, the price of post-consumer PET averaged approximately 60 percent of the price of its virgin counterpart (9). Prices tend to vary by locality due to differences in PET recycling rates (Le.., supply) and capacity for utilization. Rices paid by processors for clear baled, green and mixed PET in the southeastem states averaged 9, 10 and 9.8 cents per pound, respectively. Except for clear baled PET, for which prices dipped by 30 percent in the second half of the year, prices were generally stable. Prices in the mid-atlantic states averaged 10.1, 12.3.9.9 and 9.8 cents per pound for clear baled, clear granulated. green and mixed PET, respectivelyIFor clear granulated, prices inc&ased by 57 percent in the second quarter andiemained stable for the year. Because of its freedom from contaminants such as paper. endcaps and tops, pelletized PET commands a price often three to four times higher than other grades (10).

HDPE Unlike other resins, high density polyethylene (HDPE) degrades very little from remelting, making it ideal as a recycling material. As it comprises a relatively large portion of the plastics in municipal solid waste (20.8 percent, compared to 4.9 percent for PET), its inclusion in an aggressive recycling program would have a more substantial effect on solid waste diversion goals. Very little post-consumer HDPE (about two percent) was recycled in 1989 (11).

The amount of post-consumer HDPE used in a product can vary widely. Low end applications can consume up to 100 percent, while more demanding applications, like containers. may use only 20 to 30 percent recycled resin (12). The capacity of US manufacturers for processing and utilization of post-consumer HDPE resins expanded significantly in 1990, with many new plants across the country. About 83 million pounds of post-consumer HDPE was recycled in 1988.

command a premium price because of is greater versatility in secondary manufacture. The price of natural HDPE in 1990 was consistently 10 cents per pound in the southeastem states and about 10.5 cents per pound in the

southeastem states and 6.5 cents per pound in the mid-atlantic states (13).

As with other resins, uncolored or natural HDPE, like that used in half and one-gallon dairy containers, tends to

mid-atlantic states. Mixed rigid HDPE container prices were significantly lower at about 5 cents per pound in the

-

-

Page 3-59 NC Recyding Market Development Strategic Plan Project UNCITRE Recydable Materials Market Assessment Report 411191

PVC Polyvinyl chloride (T'VC) constitutes approximately five percent of all plastics used in packaging. About eight percent of the PVC consumed in the United States is used for packaging, representing less than 0.2 percent of municipal solid waste. Blowmolded PVC bottles currently account for approximately 200 million pounds of the 8.3 billion pounds of PVC used annually in the United States, and are the most clearly identifiable and separable source of PVC in the waste stream (14). End use of post-consumer PVC involves products manufactured using extrusion or injection molding techniques because of its rather low melt strength. Products using recycled PVC include downspouts, house siding, drain tiles, sewer pipe. telephone cable, window frames. fencing, truck bed

substitute for many others products such that total post-consumer PVC utilization might reach nearly 500 million pounds per year.

Currently, few post-consumer PVC bottles are being collected for recycling. Two recent developments, however, may trigger progress in this area. In September 1989, Occidental Chemical Corporation became the first company in the industry to buy post-consumer PVC bottles, baled with caps removed, in lots of 5,000 pounds or more. As a result, processors in at least 14 states have added PVC bottles to their list of materials handled (15). OxyChem pays the might and offers $.06 to $. 11 per pound, depending on the type of container and quantity supplied. The second new breakthrough was the recent development of a system that automatically detects and separates PVC bottles from other plastic bottles, accomplished by the Center for Plastics Recycling Research (CPRR) at Rutgers University in New Jersey. In addition to sorting out PVC. the system sorts clear PET, green PET, natural HDPE and colored HDPE containers. Funding for this research was provided by the Vinyl Institute of the Society of the Plastics Industry, Inc (16). Commercial availability of this sorting technology is being offered by National Recovery Technologies (NRT) of Nashville, TN. The NRT system will be installed at the XL Disposal processing facility in Crestwood, IL. OxyChem and the Plastics Recycling Alliance have announced plans to install PVC sorting equipment in the Plastics Recycling Alliance Philadelphia plant as well (17). While this technical advancement looks promising, some industry representatives have indicated that full-scale application of this technology will not occur for another one or two years.

Plastics Targeted by NC Legislation Section 130A-309.10 of SB 11 1 specifically singles out two plastic products which must each achieve a 25 percent recycling rate or be banned from sale or distribution in North Carolina: plastic retail shopping bags and polystyrene foam food packaging products. Plastic bags distributed in North Carolinamust be composed of recyclable materials and labeled as such as of January 1, 1991. with a 25 percent recycling rate achieved two years thereafter. Polystyrene foam food packaging items must be composed of recyclable materials by October 1. 1991, and 25 percent recycled by October 1, 1993.

Plastic shopping bags are made of low density and high density polyethylene, both of which are highly marketable if free of contaminants and kept separated. The Kroger Company has taken a lead in establishing collection centers for bags in this region with 350,000 pounds of bags recycled per year from Kroger's mid- atlantic stores.

Polystyrene discards include plastic foam cups, egg cartons, plates and food take out containers as well as plastic cutlery, plastic drink lids and other packaging such as cottage cheese and yogurt containers. Scrap polystyrene sells for approximately $.20 per pound and can be used to manufacture flower vases, pipe, flooring, office accessories and many other products.

~

liners, refuse containers and others. It has been estimated that post-consumer PVC could be used as a partial -

In an effort to promote polystyrene recycling. eight of the nation's largest polystyrene manufacturers jointly established the National Polystyrene Recycling Company (NPRC) which is spear heading polystyrene recycling in the United States. The NPRC plans to establish a network of facilities to recycle 25 percent of the post-consumer polystyrene food service and packaging materials by 1995. The first facility was established in Leominster, MA, with other planned sites including Philadelphia, Chicago, Los Angeles and San Francisco. NC polystyrene recycling initiatives and market development opportunities will be addressed in more detail in the North Carolina Recycling Market Development Strategic Plan Project.

UNCITRE NC Recyding Market Development Sbategic Plan Project Page 3-60 4/1/91 Recydable Materids ivlarket Assessment Report

3.5.3 Markets Serving North Carolina Due to its relatively high value, quality scrap plastic once baled, granulated or pelletized can be shipped economically throughout the eastern United States and in some cases even greater distances. A large number of plastic processors and end users are located in the United States which have the potential to acquire products from North Carolina. Figure 3.5.2 provides a partial list of major buyers and the resins which they accept.

End users, processors, handlers and brokers specifically identified through the OWR Recycler Database are listed in Figure 3.5.3 and mapped in Figures 3.5.4 and 3.5.5. As evidenced by this information, there are no clear dividing l i e s among end users, processors, handlers and brokers; companies can be involved in any or all of these activities.

End users identified through the OWR Recycler Database were interviewed further to obtain a more thorough description of their business activities as well as their concerns regarding the use of scrap plastics. Information pertinent to this report is provided in Appendix B. Of particular interest is that virtually all of the end users indicate that less than one-half of their scrap plastic supply comes from NC sources. In one instance, a PVC recycler indicates that 97 percent of its product comes from other states. Furthermore, several firms indicate that their ability to consume recycled plastics is limited by a lack of good quality and consistent supply of material. The extent to which existing facilities are operating at capacity and the quantity of each type of resin consumed could not be accurately determined through this survey, primarily due to a reluctance on the part of survey respondents to divulge such information However, all indications are that end-user demand exceeds current supply, and this trend is very likely to continue.

Wellman, Inc., of Johnsonville, SC, currently purchases the vast majority of PET beverage bottles collected in North Carolina as well as over 50 percent of the entire US supply. Wellman’s SC facility has a plant capacity of 175 million pounds of PET bottles annually, but its average throughput is approximately 110 million pounds per year (18). The company is fast-tracking the completion of a production line capable of handling a wider range of mixed plastics to attract a greater supply of material collected through curbside recycling programs.

NC’s current post-consumer HDPE containers (primarily milk jugs) are shipped primarily to two companies: 1) Plastics Materials Group in Fayetteville, which supplies its parent company Plastic Tubing with processed material for the manufacture of pipe and tubing, and 2) Plastic Recycling Alliance in Philadelphia. PA. This new business venture, created by DuPont and Waste Management, Inc., includes a facility (the first of an unspecified total) with a design capacity of 40 million pounds annually that will accept mixed plastics from WM’s curbside collection programs nationwide. The mixture of HDPE, PET and other plastic containers is sorted, cleaned and ground for consumption by DuPont

Figure 3.5.3 lists 42 companies which identify themselves as scrap plastics processors located in North CarCilia. Six of these are also end users. Many of these handle only one or two resin types; however, several others process a wide range of resins. Some companies perform custom grinding services in addition to processing purchased material. Several companies have cleaning or processing systems which enable them to handle post-consumer scrap. However, only a few firms specialize in processing post-consumer materials from residential sources (e.g., PET and HDPE containers).

In addition to the PET and HDPE processors described in the discussion of end users above, four North Carolina facilities are particularly worth noting: Environmental Recycling, Inc., with facilities in Raleigh and Greensboro; Southeastem Container Corporation in Enka; and GDS Recycling Services in Conover. The first two facilities buy and sell virtually all plastic types. While obtaining most of their supply from commercial and industrial sources, these facilities have a growing post-consumer program.

-

-

Page 3-61 NC Recyding Market Development Strategic Plan Project UNClTRE Recydable Materids Markel Assessment Report 411191

Southeastern Container, Inc., a cooperative that is wholly owned by Coca-Cola Bottlers in the Southeast, is one of the country’s largest manufacturers of PET soft drink bottles. This company provides transportation of loose PET bottles and HDPE milk jugs, collected primarily from communities having Coca-Cola bottling plants, to its baling operation in Enka. For small collection programs, this service offers a cost-effective means of getting their plastic containers to the marketplace. In 1990, Southeastern Container processed over half a million pounds of post-consumermaterial as well as close to400.000pounds of post-industrialPETbottle scrap, generated primarily from its own bottle manufacturing operations. About two-thirds of the post-consumer plastic was PET and one-third was milk jugs (19).

recovery facility which handles a wide range of materials collected through GDS contracts in western North Carolina as well as material from other sources. The facility operates a conveyor line for sorting recyclables and removing contaminants, and bales the plastic for shipment to other processors.

Figures 3.5.4 and 3.5.5 show the geographic distribution of processors and end users identified through the OWR survey. It is important to note that due to mapping limitations, facility locations are identified by the highest level of market service which they provide, and only one symbol per location is provided regardless of the number of processors present. Also, numerous other scrap plastic buyers exist which are not identified through this survey. As clearly indicated by the maps, North Carorma has a significant and sizable plastics recycling industry dispersed statewide in a manner largely, although not always, corresponding to population density. As is true for most recyclables, end users and processors are most prevalent in the Piedmont region, with 6 and 14 facility sites, respectively. Six handler locations and one broker location are also identified in this region. The Mountain region, particularly the Asheville vicinity, contains the second heaviest distribution of facilities, with one end user, seven processors and one broker location. The central and northern mountain counties appear to have limited access to NC plastics handlers and processors; however, firms may be located nearby in Tennessee that are not identified through this survey. In the NC Coastal Plains region, no end users are identified; however, there are five processor and two handler sites. In the Tidewater region, only one processor and two handler sites are identified. Hence, businesses and communities in this region may have difficulty accessing the marketplace due to high transportation costs relative to the product value associated with this light-weight, bulky material.

3.5.4 Conclusion It appears that North Carolina canlook forward to continued growth in plastics recycling opportunities. Currently, the greatest opportunities exist for PET and HDPE resins, both in terms of end-user demand and the existence of NC processing and handlers. However, the more rural regions in the state, particularly the Tidewater region, have gaps in the processing infrastnrcture.

A lack of adequate and consistent scrap plastic supply is cited as the major factor limiting the capability of all scrap resin end users and processors to expand their scrap plastic consumption. This same factor is likely responsible

~

GDS Recycling Services, a subsidiary of Garbage Disposal Services, Inc.. operates a 40,000-square-foot materials -

for the lack of processors in rural North Carolina. Therefore, increasing the recovery of scrap plastics is likely to enhance marketdevelopment. The cost associated with transportingunprocessed plastics appears to be the greatest factor limiting plastic recovery activities such as curbside collection and drop off center programs. Efforts to develop economical truck-mounted compaction units and education programs promoting the smashing of plastic bottles and jugs prior to setting them out for recycling (such as Mecklenburg County’s “Step on it” campaign) are examples of measures being utilized to address this barrier in the United States. AU in all, however, the value of plastic resins is inherently high and likely to remain so. This fact, coupled with increased attention on the part of the plastics industry to divert plastics from the waste stream, points toward further development of the plastics recycling marketplace.


Figure 3.5.1 Scrap Plastic Resin Uses and Services

ReSln

PET

HDPE

LDPE

PP

PS

PVC

Mlxed Plastlc

Uses

Bathtubs, sinks, showers Industrial paints Boat hulls Paint brushes Containers Scouring pads

Corrugated awnings Six-pack carriers

Fiberfill (other textiles) Strapping Engineering plastics Stalls

R b r s Urethane foam Floor tiles

Containers, pails, drums Pipe, tubing

Golf bag liners Toys Flower pots

Grates, cases, pallets

Soft drink container base cups

Bags House/office supplies

Fiber Playground equipment Construction material Pipe

Auto battery cases Furniture castings Carpet backing Video Cassette Containers

Combs Office supplies

Garbage cans Video cassette containers Flower pots Toys

Insulation

Floor mats Refuse containers Flower vases Sewer pipe

lnigationldrainage pipe Telephone cable Office accessories Truck-bed liners

Beach erosion controls Plastic lumber Car stops Playground equipment Flooring Sea walls

Flower pots Stadium seating Park benches Traffic barriers Picnic tables

Source: Trade publicaSons and Coun

Primary Sources

Liquor botUes Soft drink bottles

Bleach, detergent, motor oil containers

Pallet, shrink wrap Trash, lawn, retail

shopping bags

Auto battery cases

Food service Utensils Packaging materials

Flooring Packing (bottles)

Pipe Siding

Window, door frames

Post-consumer, post. commerical plastics collection programs

lor Solid Waste SoluSons Fact Sheets

Page 3-63 NC Recyding Market Development Sbalegic Pbn Project UNCITRE Recydable Materials Market Assessment Report 4/1/91

Figure 3.5.2 Major US Scrap Reclaimers

Location F Dundee, MI

Bridgeport, NJ

Chicago, IL

Fairfax, VA

York, PA

Iowa Falls, IA

Novi, MI

Peachtree City, GA

Edgerton, WI

Long Island, NY

Beiwyn, PA

3dessa, TX

Vancouver, WA

:hicago, IL

'ine Brook, NJ

3ronx, NY

:ountain Inn, SC

:rackville, PA

Ubany. NY

'iscataway, NY

'indlay, OH

ohnsonville, SC

Company

Clean Tech

Day Products

Eaglebmok Plastics

EnvipCo

Graham Recycling

Hammets Plastic Recycling Corp.

Johnson Controls

M.A. Industries

Midwest Plastics

NiCon Plastics, Inc.

Occidental Chemical Corp.

Orion Pacific

Partek

Plastic Recycling Alliance

Pure Tech International

R2B2, Inc.

Replax

St. Jude Polymer

Star Plastics

Jnion Carbide

Jnited Resource Recovery

Mellman

PET

X

X

X

X

X

X

X

X

X

X

X

X

X

-

HDPE

X

X

X

X

X

X

X

X

X

X

X

X

X

-

- LDPE

X

X

X

X

-

PP

X

X

X

X

- urea Vano

X

X

X

X

- d e public

PVC

X

X

- I (LE., Resr

- Mlxed

Specs Vary

X

X

X

X

X

X

X

X

X

Recyding; -

UNCITRE NC Recyding Market Development Sbategic Plan Project Page 3-64 4/1/91 Recydable Materials Market Assessment Reprt

FIGURE 3.5.3

RECYCLING BUSINESSES ACCEPTING PLASTIC MATERIALS ~

ENDUSERS

- Amex Packaging, Ltd. (Mwresville, NC) [BPEJ

- BrinUont Cop. (Greensboro, NC) [EJ

- Gilmore Assodales, Inc. (High Point, NC) [BHPEJ

- Bromley Plastics Cop. (Ashevilb, NC) [PI

- Bryant Salvage CO., Inc. (Madison Heights, VA) [BHP]

-

- C 8 H Metals & Shage. Inc. (Burlington, NC) [HP]

- Cardinal Steel Drum Cop. (Lexington, NC) [PI

- Greenwaylndustries (Green&", NC) [HPEJ - Calawba Plastics, Inc. (RockHill, SC) (BHP]

- Hammer's Pbslic Recycling Cop. (Iowa Falls, IA) [El

- King's Kountry Klassia (Hendersonville, NC) [BHPEJ

- Contex (Charlotte, NC) [PI

- Cmmpler Plastic Pipe, Inc. (Roseboro, NC) [PI

- Layman Phstics (Charlotie, NC) [HPEJ - Durbin Paper Stock Co. (Charlotte, NC) [BHP]

- OHNCO, Inc. (Bridgeville, PA) [HPEJ

- Sackner Products, Inc. (Stalesville. NC) [EJ

- Environmental Recyding, Inc. (Greensboro, NC) [BHP]

- Fairfield County Redemption (Charlone, NC) [HP]

- Universal Dispersions, Inc. (Charlotte, NC) [PEJ - GDS Recycling Services (Conover, NC) pHP]

- Wellman, Inc. (Johnsonville. SC) [EJ

PROCESSORS

- Glisson's Enterprises (Greenvilb, NC) [HP]

- H & D Enterpribes (Rdngham, NC) [PI

- ACM Cop. (SummeNille, SC) [BPI - Halilax Recycling, Inc. (Roanoke Rapids, NC) [BPI

- Add Paper Cores (Rcckingham, NC) [HP]

- Allen Recycling Center (Henderson, NC) [HP]

- American Commodities, Inc. (Southlield, MI) [PI

- Atypical Recyclers (Winston-Salem, NC) [HP]

- LaserToner (Greensboro, NC) [PI

- MER Recycling (Durham, NC) [HP]

- Medenburg County Recycling, Inc. (Charlotte, NC) [PI


[E I End User; P = Processor; H =Handler; B - Broker]

Plastic (cont'd)

- Plastic Male& Group (FayeHeville, NC) [PI

- Plastic RecyGolon, Inc. (Winston-Salem, NC) [BPI

- Plastic Service, Inc. (Colaridge, NC) [HP]

- .Ziglar Dktrbuting Co. (Winston-Salem, NC) [HP]

- Zinn Polymers (Passaic, NJ) [HP]

- Poly Produds Cop. (Spring, TX) [PI

- Poly-Recyding, Inc. (Shelby, NC) [BPI

- Polydex, Inc. (Lakewwd, NJ) [BHP]

- Quality Laser Imaging (Greensboro, NC) [P]

- Rainbow Recycling & Botanicals (West Jeflerson, NC) [HP]

- Reliable E i s a l SeFJics, Inc. (Edenbn, NC) [HP]

- Southeastem Container, Inc. (Enka, NC) [BHP]

- Southeastem Industries (Reidsville, NC) [PI

- Southern Maintenanca/Recyding (Canton, NC) [HP]

- Statewide Laser Rechargers (Arden, NC) IP]

- Sun Bell Industries, Inc. (Roanoke Rapids, NC) [BHP]

- Sun Belt Recycling (Lexington, NC) [BPI

- Tri-County Industries (Row Mount, NC) [HP]

- United Resource Recovery, Inc. (Kenton, OH) [PI

- Vaughan's Recyding (Pigah Forest, NC) [BHP]

- Visda. Inc. (High Point, NC) [BPI

- Wasle Management 01 Central Carolina (Abemark, NC) lP]

- Webster Enterphs (Webster. NC) [HP]

[E = End User; P - Processor; H = Handler; B .I Broker]

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-66 4/1/91 Recydable Materials Market Report

Plastic (cont’d)

HANDLERS

- C.I.R.C.L.E.(Creedmwr,NC)[H]

- Curb Wade 8 Recyde, Inc. (Hendersonville, NC) [BH]

- K. R. Parks Co. (Charbne, NC) [HI

- Rainbow News (Windon-Salem, NC) [HI

- Recyding Depot (Tar Heel, NC) [BHI


- Sampson County Recyding Center (Turkey, NC) pH]

- Sandhilk Recyding (Souhem Pines, NC) M

- Soulheadtem Recyding (Salisbury, NC) [BH]


- U. S. Recycling Industh (Charlone, NC) [BH]

* BROKERS

- Manhew P. McQuaid Co. (Charlone, NC) [B]

- Tri-Star Plastics Cop. (Charbne, NC) p ]

[E - End User; P I Processor; H - Handler; B =Broker]

Page 567 NC Recyding Market Development Sbategic Plan Project UNCITRE Recydable Materials Market Assessment Report 4/1/91

Sara hv9 RecydY Crutwy R a d by W-miE


UNCITRE 4/1/91

NC Recyding Market Development Sbategic Plan Project Recydable Materials Market Assessment Report



Plastic

**A symtul reprents one or more rceycling businesas of the -e type lorated in theremecity

References

(1) MarylandRecyclable Material Marker Study: II (Maryland: Department of Environment, 1990). p. 15.

(2) COPPE Fact Sheet: The Origin of Plastics, July 1990.

( 3 ) Maryland RecyclableMaterialMarket Study: II (Maryland: Department of Environment, 1990). p. 15.

(4) Powell, Jerry, "How are We Doing? The 1989 Report,'' Resource Recycling, May 1990. p. 37.

(5) Powell. Jerry, Personal Communication (Portland, Oregon: Resource Recycling, 5 October 1990).

(6) "Export Data Reported," Plastics Recycling Update, March 1990. pp. 1-2.

(7) Combs, Susan, "Plastics Recycling Takes Off with New Facilities, Methods," Recycling Times, 31 December 1990.

(8) Nation's Largest Plastics Recycling Venture Launched (Council for Solid Waste Solutions, 3 May 1989).

(9) Bracken, Robert, "Commercial and Industrial Plastic Waste: Waste Stream Composition and the Potential for Recycling in Alamance County," (North Carolina: Alamance County Health Department, 1989).

(10) Misner. Michael, "Market Prices for Recyclables - 1990," Recycling Times, 1990.

(1 1) Market Assessment of Material Mandared for Recovery in Connecticut (Somerville, Massachusetts: Mt. Aubum Associates. 1990).

(12) bid.

(13) Misner, Michael, "Market Prices for Recyclables - 1990," Recycling Times, 1990.

(14) Bennet, R. A. and Lefcheck, D. L., "End Use Markets for Recycled Polyvinyl Chloride," (The Vinyl Institute).

(15) Plastics World, April 1990,

(16) "Breakthrough in Plastics Recycling," Public Works, August 1990.

(17) Powell, Jerry, "The Common Recyclable: The Growth in Plastic Bottle Recovery." Resource Recycling, January 1991.

(18) EcovinylEchoes (Borwyn. Pennsylvania, First Quarter 1991).

(19) Maurer, Cassandra, Personal Communication (Southeastem Container, Inc., 21 February 1990).

UNCITRE NC Recyding Market Development Strategic Phn Project Page 3-70 4/1191 Recydable Materids Market Assessment Report

3.6 RUBBER

3.6.1 Description

toughness and resistance to wear) and can beused in tires, electrical insulation and waterproof materials (e.g..

Rubber is an elastic substance obtained by coagulating the milky juice of the rubber plant and other various tropical plants. Rubber can be modified by chemical treatment to increase its useful properties (e.g.,

hoses, boots, gloves, etc.). Old tires are the primary source of discarded and recyclablematerial that comprise the rubber category.

-

3.6.2 Market Structure End users, processors, handlers and brokers of rubber waste identified through the OWR Recycler Database are listed in Figures 3.6.1 and mapped in figures 3.6.2. and 3.6.3. It is important to note that due to mapping limitations, facility locations are identified by their highest level of service to the market.

Scrap Vehicle Tires Scrap tires are reused in a number of ways throughout the United States. These include use as an additive to asphalt (Le., rubberized asphalt), roadway fill, chips for use as fuel (Le., tire-derived fuel, known as TDF), artificial reefs, retreaded or recapped truck and passenger tires, dock and trailer bumpers, containers, mats, pads and floor tile. Of these products, only retreaded or recapped tires are manufactured in North Carolina today.

Rubber tires are vastly becoming an environmental problem for the United States and North Carolina. Passenger vehicle tires; light, medium, and heavy truck tires; off road tires; and air plane tires all contribute to the growing problem of tire disposal. The shape of the tire is conducive to rodent nesting and standing water, a condition that produces noxious odors and attracts mosquitoes and bacteria.

Recently, the NC General Assembly passed the Scrap Tire Disposal Act as part of SB 11 1. As a result of this act. every scrap tire hauler is required to register and complete a scrap tire certification form, and scrap tire disposal facilities must have a permit to operate after July 1,1990.

The US stockpile of scrap tires is estimated at 3 billion (I) . Each year, 190 million passenger car tires and 47 million truck tires are discarded in the United States, either in landfill, tire dumping facilities or illegally, off banks or on the side of the road (2).

OfthesixmilliontiresgeneratedinNorthCarolina,30percentareretreaded,accordmgtotheNCTireDealers and Retreaders Association. An association spokesperson notes that this is the highest percentage of tires retreaded in the United States (3). Although statewide figures on retreads are not obtainable, individual retreaden produce anywhere from 22.00 to 182,000 tires per year (4) (5) .

Retreading requires about 30 percent of the energy necessary to produce new tires, and it provides nearly 80 percent of the mileage of a new tire. Almost 20 million truck tires and 17 million passenger tires are retreaded

Retreaders act as end users, processors and handlers. Typically, the larger retreading firms work with truck or tire companies in a closed loop system to obtain, process and resupply tires. The "loop" works as follows: Retreaders pick up tires to be retreaded; after recapping these tires they deliver the load of new retreads and repeat the process. Retreaders that have state or county contracts need not be close to the contractor because transportation costs are negotiated into the contract. Smaller retreaders are often new tire dealers and often receive used tires when they sell new ones.

annually. Over 35 million retreaded tires were sold in the United States in 1989 (6). -

-

Page 3-71 NC Recyding Market Development Strategic Plan Projecl UNClTRE Recydable Materials Market Assessment Report 411191

There are two procedures for retreading tires: hot capping, or mold cure, and cold capping, or precure. Both procedures call for the inspection and buffing of a used tire and subsequent cement application of the new rubber.

Hot capping is the method used primarily for passenger tire retreading. Smooth tread is received in three-inch-wide and one-half-inch thick strips. These strips are broken down into ribbons and placed around the tire. The tire is placed in a treading machine that applies heat and pressure that adheres the strips and gives the tire its tread design.

Cold capping, used primarily in truck retreads, consists of applying precured tread to the tire with cushion gum to hold the tread to the casing. The tire is then placed in the mold where heat is applied and bonding takes place. Cold capping is the less expensive of the two methods (7).

North Carolina currently prohibits the use of reclaimed rubber in the capping of used tires: however, a retreader recently received permission to begin testing the use of scrap rubber in retreads. The firm plans to incorporate reused rubber in truck tire retreads in two years (8).

Reuse of scrap tires is not only an issue of concern in North Carolina: it is a problem with a national scope. The following discussion describes potentialapplicationsforused tires that could createnewmarkets inNorth Carolina.

Tire-DerivedFuel. Tire-derived fuel (TDF) specifications depend on tire chip size, wires and foreign matter. Different technologies call for different specifications. The "average" criteria for TDF consists of two-inch tire chips with no significant exposed wire and no foreign matter. These chips can be used to replace bituminous coal or burned in dedicated TDF burners. A spokesperson for American Refuse Services (AFS) said that there is potential for the processing and use of TDF in North Carolina. Industries that use lump or 2x0 coal are potential consumers, such as paper mills and cement kilns (9).

Georgia and Virginia both have industries that incorporate TDF as a fuel source. Some Georgia paper plants have been using TDF for three to five years. The Commonwealth of Virginia has sponsored test bums and will provide its results to interested industries. Virginia is also developing financial incentives to industries incorporating TDF (10).

NC utilities do not have TDF potential because they burn pulverized coal graded at 200 mesh. This means that 200 granules need to pass through a screen for burning. Tires can only a h e v e a grade of 60 mesh and cannot be ground any smaller without sophisticated and expensive technology (1 1).

The advantage of using TDF is its high Btu content and lack of apparent environmental hazards to date. According to the ARS representative. the reason for lack of TDF activity in North Carolina has its mots in poor communication between industries, processors and regulators. Processors are not likely to produce TDF withoutacontract, butindustrieswanttotestTDFbeforetheycontracttobuyit.BecausenoindustryinNorth Carolina is using TDF. regulators are not knowledgeable about the field. The problem is compounded by the fact that companies using TDF will not readily share information with other companies because of the competition factor (12).

The NC Energy Division's Waste Tire Utilization Project is concentrating on the demonstration of a facility that will produce 100percent TDForatleast 50percentTDFandSOpercentmaterial foruse inotherprocesses using rubber, crumb rubber or other materials derived during the production process. The determination for a facility will be based on the appropriateness of the technology to satisfy market consideration of waste rubber.

RubberizedAsphalf. Rubberized asphalt is a modified asphalt incorporating approximately three percent of crumb rubber, derived from tires. Forty-five states are currently testing or have tested rubberized asphalt (13).

UNClTRE NC Recyding Market Development Strategic Plan Project Page 3-72 4/1/91 Recydable Materids Market Assessment Report

A spokesman for the Rubber Manufacturers Association indicates that the cost of rubberized asphalt is 10 to 400 percent greater than traditional asphalt (14). However, there are significant long-term benefits. First, rubberized asphalt lasts two to three times longer than haditional asphalt. Second, one inch of rubberized asphalt is equivalent to two inches of traditional asphalt in its ability to absorb wear and tear (15). A major obstacle in incorporating crumb rubber in hot asphalt is the emission of hazardous vapors. This will have to be resolved before commercial companies in North Caroliia become involved in rubberized asphalt paving.

The NC Department of Transportation estimates that if they use rubberized asphalt, they will be able to

annual asphalt needs (16). NC State University is conducting a three year study to determine the best "recipe" for rubberized asphalt. These specifications will then be brought to the field for a road test (17).

Roadway Fill. Shredded tires can substitute for gravel fa which is used to stabilize roadways. Minnesota and Oregon have both incorporated shredded tires into fill for roadways over swampy areas, but North Carolina is currently not using this option In Minnesota. 52,000 shredded tires were used in a 250-foot section, six inches above water level (18). The fact that tire fill weighs considerably less than gravel results in less pressure on swampy areas, thereby decreasing the chance of embankment failure. The tires still produce leachate, but it is not as severe as asphalt leachate (19).

~

consume five million tires (60 pounds of rubber per one ton of asphalt) per year in order to accommodate -

3.6.3 Markets Serving North Carolina North Carolina is the largest retreader of tires in the United States. As shown in Figures 3.6.4 and 3.6.5, the OWR Recycler Database identifies 120 retreaders in North Carolina. These retreaders are dispersed uniformly throughout the state, except in the Tidewater region. Most of these retreaders do not rely on retreading for their sole source of income, but on selling new tires as well.

The OWR Recycler Database identifies two handlers of butyl rubber inner tubes in North Caroliia. one in the Mountain region and one in the Coastal Plain region. These handlers ship their collected rubber outside of the state because there are no reclamation centers in southeastem United States (20).

The collection area for the handler from the Mountain region encompasses three states. A spokesperson for the firm notes that they need to reach a 40,000 pound minimum in order to make money on shipments to the nearest end users with the best prices -- one being in Ontario, Canada, the other being in Pittsburgh. MS. The spokesman also says that they wait for market prices to be competitive before they ship collected tubes. If the load is large enough, they will collect tires free of charge. To encourage consumer orpiecemeal collection, the firm pays for the inner tubes. This has yielded shipments of only five loads in the past seven years. To alleviate transportation costs, this handler relies on backhauls from truckers who have delivered goods in North Carolina (2 1). The handler located in the Coastal Plain region collects inner tubes from a seven-county area.

Scrap Foam Rubber Scrap foam rubber is reused to make new foam rubber. The end product is used primarily as packing material, and pillow and mattress fill. There is one NC company identified in the OWR Recycler Database that processes scrap foam rubber. This company produces approximately 520,000 tons of foam rubber per year. One hundred percent of their feedstock comes from NC scrap foam rubber.

The company contacted did not disclose capacity, demand, price, processing, collection or supply information. It is therefore difficult to draw any conclusions about the health or future of this market (22).

Page 3-73 NC Recyding Market Development Strategic Pbn Project UNCR'RE Recydable Material$ Market Assessment Report 411191

3.6.4 Conclusion North Carolina has a strong tire retreading and recapping industry as a result of the high percentage of registered trucks in the state. North Carolina ranks as the seventh leading state in terms of truck registration (23). This has contributed to a healthy market for retreaded buck tires. North Carolina state govemment, a long time user of retreaded tires for trucks and buses, has had a positive impact on the business of at least one of the state’s larger retreaders.

The market for passenger car retreads in North Carolina is diminishing. New steelbelted tires are difficult to retread. New tire imports with an average lifespan of 40.000 to 50,000 miles are only slightly more expensive than a retreaded tire with a lifespan of 20,000. Additionally, many people believe (incorrectly) that retreaded tires are not as safe as new tires (24).

Disposing of tires that are not fit for retreading is an issue of concem for passenger tire retreaders. For example, one retreader picked up 3,000 used tires from a wholesale tire outlet 85 percent of which were unfit for retreading (25). This puts the burden of disposal on the retreader. If unfit tires are collected from another state, they are still subject to NC landfill and tipping fees. As a result of the NC Scrap Tire Disposal Act of SB 11 1 and an increase in tire disposal tipping fees, altemative tire markets are needed to consume all of the tires generated in North Carolina. TDF and crumb rubber applications have much promise but need further development before providing viable outlets for tires in North Carolina. The TDF project administered by the Energy Division and rubberized asphalt study being conducted by NC State University are both positive steps toward developing a market for the large supply of new tires.

The market for inner tubes is stable, although end users indicate that it can take several months to collect enough tubes in order for transportation to be cost efficient. Handlers of these inner tubes expressed the belief that a landfill ban of inner tubes would strengthen the market, as would the location of a reclamation center in the southeastem United States.

UNClTRE NC Recyding Market Development Sbategic Phn Project Page 3-74 4/1191 Recydable Maten& Market Assessment Report

FIGURE 3.6.1


RUBBER MATERIALS ~

ENDUSERS

- Unipoint Industries, Inc. (High Point, NC) [BHPQ

PROCESSORS

- ACM Cop. (SummeNilie, SC) BPI


- Rainbow Recycling 8 Botanicals (West Jefferson, NC) [HP]

- TriCounty l ndus th (Rocky Mount, NC) WP]

- Waste Management of the Piedmont (Kemersville, NC) [PI

- HANDLERS

- Morrison's Recycling (Elkin, NC) [BHj

- Sampon County Recyding Center (Turkey, NC) [BH]

[E I End User; PI Pmcassor; HI Handler; B = Broker]

Page 3-75 NC Recyding Market Development Strategic Plan Project UNCITRE Recvdable Materials Market Assessment Rewrt 4/1/91

-4- b x c o H R F e w ! e - c i a D y ~

UNClTRE NC Recyding Market Development Strategic Plan Pmjed FIGURE 3.6.2 mmi R q d a b l e Materials Market Assessment Report Page 3-76

d

r5 z z K u W P;

FIGURE 3.6.3 NC Recyding Market Development Strategic Pian Project UNCITRE Page 3-77 Recydable Materids Market Assessment Report 4/1/91



4 symbol represents one or more recycling business of the same type located in the m e city Y Gmpania are prioritized by type of

business End User, F ” r . Handler, Broker

Rmred by W-(TRE S p r a ~ ~ ~ e c t u y ~ ~ ~ ~ h ~ T r e ~ ~ Rev&”

UNCITRE NC Recyding Market Development Strategic Plan Project FIGURE 3.6.4 4/1/91 Recydable Materials Market Assessment Report Page 3-78

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NC Recyding Market Development Strategic Plan Project Recydable Materials Market Assessment Report

References

'Ball, C.A., "Retreading Can Ease Out Scrap Tire Roblem." Tire Business, June 1990, p. 13.

2Carpenter, J.A. and Hemphil, T.A., "New Jersey Tire Recycling: The Public Policy Report" Resource Recycling, February 1990, p. 44.

3Solid Waste Reduction: Alternatives for North Carolina (North Carolina: Pollution Prevention, October 1988). p. 63.

4Smith, Bob, Personal Communication (Durham, North Carolina: North Carolina Tire Dealers and Retreader Association, 12 February 1991).

'Keams, Charlie, Personal Communication (Charlotte, North Carolina: Charlie Keams Truck Retreading, 9 February 1991).

'White, Jimmy, Personal Communication (Goldsboro. North Carolina: White Tire Company, 7 February

71990 Fact Sheet on Retreaded Tires, News Release from TRIB (Carmel, California: Tire Retread Information Bureau, 1990). p. 11.

*Smith, Bob, Personal Communication (Durham, North Carolina: North CarolinaTire Dealers and Retreaders Association 12 February 1991).

'Ibid.

"White. Jimmy, Personal Communication (Goldsboro, North Carolina: White Tire Company, 7 February

"Ibid.

'*bid.

'3Godwin, Grant, Personal Communication (Pinehurst, North Carolina: American Refuse Systems, 12 February 1991).

l4bid.

' b i d .

"bid.

I7France, Al, Personal Communication (Phoenix, Arizona: Asphalt Rubber Products Group, 9 February 1991).

'8Blumenthal, Michael, Personal Communication (Washington, D C Rubber Manufacturers Association: Scrap Tire Management Council 12 February 1991).

"France, Al, Personal Communication (Phoenix, Arizona: Asphalt Rubber Products Group, 9 Februaly

20Smith, Bob, Personal Communication (Durham, North Carolina: North Carolina Tire Dealers and Retreaders Association, 29 November 1990).

1991).

1991).

1991).

UNClTRE NC Recyding Market Development Sbategic Plan Projecl Page 3-80 4/1191 Recydable Materials Market Assessment Reprt

'lKhosla, Paul, Personal Communication (Raleigh, North Carolina: North Carolina State University, 14 February 1991).

"Ohm, John, "Tire Fill Stabilizes Roadway, Embankment," Public Worlcs, October 1990, p. 68.

23Blumenthal, Michael, Personal Communication (Washington, DC: Rubber Manufacturers Association: Scrap Tire Management Council, 12 February 1991.

uOldham, Conine, Personal Communication (High Point, North Carolina, Unipoint Industries, Inc., 28 January 1991).

zMomson, Melvin, Personal Communication (Elkin, North Carolina, Momson's Recycling, 19 February 1991).

%bid.

271bid.

-

Page 3-81 NC Recyding Market Development Sbategic Plan Project UNClTRE Recydable Materials Market Assessment Report 4/1191

3.7 BIOMASS

3.7.1 Description Biomass consists of organic materials which are produced by living organisms (Le., animals and plants). Several other major material categories (i.e., chemical, construction and petroleum) include materials which are derived from living matter.

Recyclable biomass materials include yard waste, biological wastes, sludges, agricultural wastes, food wastes and some wood wastes. Specific biomass materials to be discussed in this report are yard waste, agricultural waste, food waste and sludge. Composting of biomass and marketing of compost products are covered in a companion report"

Due to its volume in the municipal waste stream, one of the most significant recyclable materials in the biomass category is yard waste. Yard waste consists of leaves, grass clippings, weeds, garden himmings, brush and tree prunings generated primarily by homeowners and commercial landscapers.

Agricultural waste consists of hay and straw, animal bedding, crop residues, animal manure, animal carcasses and any other organic waste materials that are generated in agricultural operations, including forestry. Agricultural waste is often composted, bumed or otherwise disposed of on site, making it difficult to quantify.

Food waste is any material generated in the production, processing, transportation, distribution or consumption of food. Examples of food waste include fruit and vegetable scraps, eggshells, fat, bones and spoiled food.

Biomass can account for a large percentage of the municipal waste stream. Current emphasis on reducing the amount of materials going to landfills has resulted in considerable interest in composting biomass. Composting is a naturally occumng degradation process which can be accelerated by proper management to reduce the volume of organic materials in the waste stream and convert biomass wastes to usable, often marketable, products. Detailed discussion on the process and products of composting is included in a separate volume of this report. The following discussion, therefore, will be limited to recycling options for biomass waste materials other than composting.

3.7.2 Market Structure Listed in Figure 3.7.1 are those companies which describe themselves as brokers, handlers, processors or end users of biomass waste in the OWR Recycler Database. Figure 3.7.2 is a map illustrating the distribution of these companies within North Carolina.

Yard Waste National estimates indicate yard waste to be anywhere from 10-40 percent of the waste stream, with considerable seasonal and geographic variation. The estimated amount of yard waste in the NC waste stream is 20 percent, again with much seasonal variation (See Appendix C). Many NC communities are considering large-scale yard waste mulching and composting operations in response to the ban on yard waste in landfills by January 1. 1993, promulgated by SB 1 11. Further discussion on mulchingkomposting of yard waste can be found in the compost report. Markets for other yard waste products consist of fuel in the form of wood chips produced from shredding brush and wood waste. No markets exist specifically for fuel made from yard waste. However, there arenumerous wood-fired boiler systems at industrial plants in the NC region.

Agricultural Wastes NC State University's Agricultural Extension Service (NCSU Ag Extension) works to promote market development through legislation and education. One of their objectives is to analyze specific agricultural waste products to determine how they can be utilized instead of being discarded. Often wastes that end up in l andfa could be safely used by other industries. NCSU Ag Extension is working to ease the standards set by b e state for recycling agricultural products.

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-82 4/1191 Recydable Materids Market Assessment Report

One NCSU Ag Extension experimental project which could have a positive impact on acceptance and market development of a specific agricultural waste involves energy recovery from animal manure. This project, funded by the NC Energy Division, recovers the manure waste from about 150 dairy cows, routes the waste into an 800,000-gallon anaerobic digester and pumps biogas (68-72 percent methane) which is generated in the digester back to the dairy operation where it fuels a hot water boiler. The hot water is used for sterilization in the production facility. The process generates an average of 4500 cubic feet of methane per day. The NCSU Ag Extension plans another methane recovery project at a 1000-head swine operation. A NCSU Ag Extension representative states that this type of system is suitable for any operation that generates a high biochemical oxygen demand and/or

absorption cooling (refrigeration), transportation and gas-fired air conditioning.

Other applications for certain agricultural waste and some food waste are in rendering operations. Rendering plants accept dead farm animals, slaughter by-products, cooking oil, inedible fatlbones and restaurant grease. These waste products are processed to recover their protein and nutrient value, the product of which is a nutritional supplement for animal feed. Enterprise Rendering Company in Oakbm, NC, and CBP Resources (with operations in Greensboro; Fayetteville; Gastonia; Norfolk, VA; and Knoxville, TN) are identified as processors in the OWR Recycler Database.

The forestry industry is alarge generator of biomass, specifically wood waste. Significant amounts of wood waste are generated from the forestry industry in the form of coarse and fine wood residues such as sawdust, shavings, and tree bark. Figure 3.7.3 represents the use of residues reported in green tons by sawmills and pulp mills located in North Carolina in 1987 (1).

~

chemical oxygen demand. The energy can be recovered and used for electric generation, boilers for water or heat, -

I use BE& coarse FlneS

FiberpmduCts 415 3,373,852 178.351 PaWeboaid 749 368,476 270.007 Charcoal 126a 0 0 Sam products 0 321.588 0 Indusbial fuel 1,639,165 213,666 2,199,362 DDmestic fuel 25,718 154540 0 Miscellaneaus 547.517 21,307 512,711 Not used 92,810 51,160 83.551

Total 2,307.643 4504,679 3,243,982

Figure 3.7.3 Uses for Forestry industry Wood Waste in North Carolina in 1987

Page 3-83 NC Recyding Market Development Sbategic Phn Project UNCITRE Recydable Materials Market Assessment Report 4/1/91

Sludge Sludge is the solid matter remaining from water purification processes and wastewater treatment. In many states, including North Carolina, sludge disposal is prohibited from sanitary landfills. Beneficial uses of municipal sludge include composting, chemical stabilization and land application. In addition to these beneficial uses. sludge disposal options include incineration and monofilling ( i t . , landfiing of sludge in a dedicated facility). The beneficial use options are endorsed by federal @PA) and NC (NCDEHNR) regulatory agencies. Industry experts predict sludge disposal trends for the future are moving more to the beneficial use options, especially land application, and away from incineration and monofills.

Comoosting, an alternative to landfill dismsal currently under consideration by many local govemments, is -

discussed in the compost report ' Chemicalstabilization is the process of mixing the sludge with cement kiln dust or lime to produce a stabilized product marketed as a soil amendment. Land application is the process of spreading sludge at agronomic rates to farmland. This process is considered a beneficial use of wastewater treatment sludge because of the nutrient value provided to crops.

The most common sludge disposal method in North Carolina is land application. Three companies in North Carolina that specialize in sludge management through land application are Amsco (in Clemmons). Bio-Gro (in Charlotte) and Environmental Waste Disposal (in Advance). These companies are. hired by local govemments to acquire thenecessary permits, locate suitableland andlandowners willingto acceptthe sludge, establishapplication rates, monitor the application and perform other related services.

Other Biomass The OWR Recycler Database identifies several companies who handle or process biomass materials which have not been specifically discussed in this or any other material category (see Figure 3.7.1). Wood waste, for example, is discussed in both the biomass category (as yard waste) and in the construction category. Considerable wood waste is generated outside of these general categories, such as wooden shipping pallets. Pallets. rather than listed as a separate category, are incorporated in the biomass category. Also lumped in the biomass category is contaminated soil. Pallets and contaminated soil have markets as secondary materials, primarily as fuel. Some pallets can also be refurbished. A number of pallet rebuilders are. located in North Carolina.

3.7.3 Conclusion The primary market for biomass waste materials, other than for use as fuel, is mulch and compost products. Yard wastes and agricultural wastes have tremendous potential to become useful soil amendment products by composting, as discussed more fully in the compost report However, there is no formal market structure for compost products as well as no organized infrastructure for generating uniform quality compost products.

The future of sludge management in North Carolina appears to be moving towards increased land application and composting. Agricultural regions in the state will probably have a continuing demand for land-applied sludge. Without a nearby source of suitable agricultural land, more metropolitan areas may find application of sludge to be a less economical option. Where markets exist for the product, chemical stabilization of sludge may become a more popular option if land application is not economical. Non-point source waster pollution legislation, if adopted, could affect handling requirements for biomass waste in agricultural and other operations.

Additional markets discussed in the previous paragraphs represent viable but somewhat limited outlets for some of the biomass waste materials. Continued research into additional markets for these materials, as well as endorsement by govemmental entities through procurement practices, will increase the viability of these markets.

UNCITRE NC Recycling Markel Developmenl Strategic Plan Project Page 3.84 4/1/91 Recydable Malerids hiarkel Assessment Report

FIGURE 3.7.1

RECYCLING BUSINESSES ACCEPTING BIOMASS MATERIALS

* ENDUSERS

- Jackion Paper Mlg. Co. (Sylva, NC) [E]

- Pallet SeMces, Inc. (Lynchburg, VA) [PE]

- WUW, InclSoil Reclaiming, Inc. (Sanlord, NC) [PE]

* PROCESSORS

- CBP Resources, Inc. (Greensboro, NC) [HP]

- Carolina By-Products Co. (Greensboro, NC) [PI

- Conwed Fbers (H ih ry , NC) [P]

- Ed's Pallet World (Ellenboro, NC) [PI

- Enterprise Rendering Co. (Oakbro, NC) [PI

- Gamble Pallet 8 Warehouse Equipment Co. (Charlone, NC) [HP]

- Green Glen, Ltd. (Pitlsboro, NC) [BPI

- Kamlar C o p (Rmky Mount, NC) [PI

- Noble Oil Services, Inc. (Sanford, NC) [HP]


- Wastek (Pltsbom, NC) [BPI

- Andrews Wood Products, inc. (Lenoir. NC) (HI

- Four Seasons Industrial Services, Inc. (Greensboro, NC) [BH]

-

- Weyerhaeuser Co. (Monnrre, NC) [HP]

- HANDLERS

[E = End User; P - Processor; H =Handler; B =Broker]

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NC Recyding Market Development Strategic Plan Project Recydable Materials Market Assessment Report

References

(1) 1987 Commodity Drain Survey (Raleigh, North Carolina: North Carolina Department of Environment, Health and Natural Resources, Division of Forest Resources, 1987).

Page 3-87 NC Recyding Market Development Strategic Plan Project UNCITRE 41/91 Recydable Materials Market Assessment Report

3.8 PETROLEUM ~

3.8.1 Description Petroleum, anoily bituminous liquid, isacomplexmixtureofhydrocarbons withsmall amountsofothersubstances that is prepared by various refining processes for use as gasoline, motor oil or other products. The only specific petroleum material to be discussed here is used motor oil.

Motor oil is used primarily to lubricate vehicle engines. EPA figures show that roughly 2.6 billion gallons of lubricating oil were sold in 1988. This resulted in the generation of 1.4 billion gallons of used oil, of which only about 0.8 billion gallons were handled through the used oil management system (1).

Crankcase oil from privately owned vehicles is generated by individual consumers who change their own oil (“do-it-yourselfers.” or DIYs) at the rate of about200 million gallons per year. Auto shops and industrial generators account for another 370 million gallons (2).

Significant concem exists about the amount of waste oil which is illegally dumped or disposed of in landfills or other environmentally unacceptable locations. Crankcase oil drainings have been reported to account for more than 40 percent of the total oil pollution of our nation’s harbors and waterways (3). Increasing emphasis is being given to fmding acceptable disposal and recycling outlets forused oil by federal, state and local governments.

3.8.2 Market Structure The two major products generated from reclaiming waste motor oil are fuel oil and lubricating oil. Of the more than 1.2 billion gallons of used oil generated in the country in 1983, almost 50 percent was processed into fuel, while only 5 percent was re-refined into a lubricating oil; over one-third was landfilled or dumped (4).

Fuel from waste oil is produced by a distillationlfiltrationheating process. EPA estimates that in 1983, half of the oil consumed as fuel was blended with virgin oil before being bumed (5). The primary markets for this product are industrial boilers and asphalt plants. Asphalt plants, while having the capacity to bum more than 400 million gallons of used oil per year, are only buming about 100 to 200 million gallons per year (6).

The other major product generated from reclaiming waste motor oil is lubricating oil. According to the Association of Petroleum Re-Refiners, there are currently only five active oil re-refineries in the United States and two in Canada, as listed below:

-

- BresLube in Breslow, Ontario

- Consolidated Recycling in Troy, IN

- Demenno Kerdoon in Dompton, CA

- Evergreen Oil in Imine, CA

- Mohawk Lubricants in N. Vancouver, British Columbia

- Motor Oil Refining Co. in McCook, IL - Mid-America Distillation in Hot Springs, AK

A sixth re-refinery is under construction in East Chicago, IN, which is scheduled to open in mid-1991. Only a small amount of the re-refined oil reaches retail markets as an automotive lubricant (7). Other uses for the product are as cutting oils for industry, fuel oil, dust control and inclusion in asphalt products.

Key factors in the economic viability of used oil reclamation are the price of crude oil and federal regulations concerning the handling of used oil. In 1985 the EPA proposed regulations that would classify used oil as a hazardous waste.

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-88 411191 Recydable Materials Market Assessment Report

The EPA’s proposal has met considerable opposition, prompting the EPA to back off from its earlier stand. However, the EPA has yet to make a clear decision on whether or not used oil is hazardous (8).

Opposing the agency’s proposal are the fuel oil processors, who now harbor the majority of the used oil market. As it stands, re-processors have a strong market for theirfueloil product, strengthened further with the recent price increase of crude oil. Figure 3.8.1 illustrates the effect of virgin fuel oil price fluctuations on the price of used fuel oil. This graph identifies the critical point which determines whether generators are charged or paid for their used Oil.

A hazardous classification will raise the costs of handling and significantly restrict usage of used oil as a fuel. Fuel - oil processors claim that by labeling used oil as hazardous, more illegal dumping will occur because of the increased costs of collection and handling,

In favor of the hazardous classification are the oil re-refiners. The re-refining industry has suffered several blows over the last 20 years which drastically reduced the re-refining capacity in the COUntT. Re-refining was at its peak in the 1960s. with over 300 million gallons processed per year. In 1965, a S.06 sales tax that had been imposed on virgin oil but not on re-refined oil was revoked. In the 1980s. the cost to dispose of hazardous by-products generated in the re-refining process increased significantly (9). An additional limitation is the lack of a collection and transportation infrastructure for used oil such as that which exists for crude oil.

Financial incentives in other countries have encouraged the re-refining of used oil (10). For example, New Zealand charges a 20 percent sales tax on virgin lubricating oil from which re-refined oil is exempt. A small financial incentive (about $.lo per gallon) is paid to individuals who retum oil to collection stations. France pays a bonus to re-refiners.

3.8.3 Markets Serving North Carolina In North Carolina. all waste oil currently collected is processed and marketed as a fuel oil or fuel blend. The primary market for fuel oil in North Carolina. as in much of the country, is for industrial fumaces and fuel for large driers used in asphalt plants. Final product specifications vary according to market needs. The product usually sells for 10 to 20 percent below the virgin fuel products with which it competes.

Processing for use as a high quality lubricant (requiring re - re f~ng) is less common. and virtually none of the waste oil collected in North Carolina at this time is re-refined.

Re-refining of waste motor oil was attempted in North Carolina by the Department of Corrections at a facility in Garner several years ago. The waste oil was collected from state-owned vehicles and re-refined into a lubricant at the Gamer facility. The program was reported to have failed because of the limited volume of incoming waste oil and technical problems with the process.

Some processors are known as fuelblenders. Fuel blenders accept various waste chemicals, usually f” industrial sources, such as solvents, sludges, flammable and combustible liquids, paints, petroleum products, hydraulic oil, cutting oil and lubricating oil. The materials are mixed according to the needs of the end user. The materials are bumed for their Btu value and, in some cases, are bumed primarily as a method of disposal. Fuel blenders, while they do handle non-hazardous materials such as waste motor oil, are permitted by the federal govemment to handle hazardous wastes and are, therefore, distinct from the processors who process only non-hazardous motor oils. Used crankcase motor oil constitutes only a fraction of the waste handled by fuel blenders.

Within North Carolina, currently 17 companies are listed as brokers, handlers, processors or end users of waste, motor oil in the OWR Recycler Database. These companies are identified in Figure 3.8.2.

-

Page 3-89 NC Recyding Market Development Strategic Pbn Projecl UNCKRE 41191 Recydable Malerids Market Assessment Report

In addition to the companies located in North Carolina, six processors and one end user are contained in the OWR Recycler Database and located in adjacent or nearby states which also serve North Carolina. End users are the primary driving force of the marketplace because they are the recycling businesses using the secondary materials handled and processed by other recycling businesses. In the case of used oil. many companies may be both processors and end users. Oldover Corporation in Ashland, VA, bums re-processed fuel oil along with other fuels in the production of light-weight aggregate. Enterprise Rendering Company in Oakboro, NC, reportedly accepts waste oil from small quantity generators, processes it and bums it in their rendering operation.

The OWR Recycler Database contains seven processors of waste motor oil which are located in North Carolina

with seven collection locations serving North Carolina generators. Currently. all of the waste oil collected by Safety Kleen is processed out of state. Almost all of the waste oil from NC generators currently goes to Bethlehem Steel in Baltimore to be used as blended fuel stock. According to Steve Kepley, regional manager, roughly 3 million gallons are collected and processed by Safety Kleen from sources in North Carolina.

In the near future, Kepley repom, Safety Kleen plans to re-refme all waste oil collected in North Carolina at the plant under construction in East Chicago, IN. This plant, claimed to be the world’s largest re-refmery, should be in operation by mid-1991 and will be capable of processing 75 million gallons of used automotive and industrial oils (as well as 20 million gallons of oily wastewater) per year. From the waste oil feedstock. the products will be high-grade base lubricating oil, distillate fuel, asphaltic bottom cut and reprocessed fuel.

According to Kepley, re-refined oil from an existing Safety Kleen re-refinery is now being distributed by Wal-Mart stores as “America’s Choice” brand. Kepley says that this product meets API specifications for motor oil and sells for approximately $30 per quart.

Noble Oil Services processes waste oil into fuel at its Sanford facility. According to Ed Howell of Noble, the Sanford facility is capable of producing 80-90,OOO gallons per day of specification fuel oil. It receives waste oil from as far west as Winston-Salem and as far east as Wilmington from military bases, service stations and other handlers. Their service area may vary according to buyer needs.

Holston Energy (in Waynesville) is one of the largest waste oil processors located in North Carolina. Holston works with several counties (in Region D and in western North Carolina as far east as Catawba County) in their waste oil collection programs. Holston also collects waste oil with its own trucks from service stations throughout the Piedmont. All of the waste oil is processed at the Waynesville facility into specification fuel. Holston collects waste oil from neighboring states, but the majority comes from North Carolina (an estimated 4 million gallons per year).

Heritage Environmental Services accepts various oils from industrial generators and processes them into fuel at its Charlotte facility. Lynn Phillips of Heritage estimates that only 5 percent of the total volume processed is crankcase oil.

Statewide Service and Supply, located in Spartanburg. SC, receives roughly half of its incoming waste oil from North Carolina (nearly 1 million gallons per year). Statewide is a re-processor who markets its fuel product strictly in South Carolina.

Figures 3.8.3 and 3.8.4 display the locations of waste oil end users, processors, handlers and brokers in the United

state, with the possible exception of the Coastal Plain region. The closest processor to the coast. according to the OWR Recycler Database, is Noble Oil in Sanford. The acceptable radius from generators to processors is variable, but is probably not greater than 100 miles in most of North Carolina. Refinery grade fuels are readily available and relatively cheap to industrial customers near the coast. This location (Le.. transportation) factor reduces the competitive price advantage experienced by re-processors in the rest of the state.

Used motor oil is rarely brokered. In fact, no brokers of used motor oil are contained in the OWR Recycler Database within North Carolina. Altemate Energy Resources, Inc. (Augusta, GA), and Necessary Oil Company (Bristoi, VA) are listed as out-of-state brokers serving NC generators. Both of these companies are also listed as handlers

~

and seven which are located outside the state. Safety Kleen is listed as a waste oil processor as well as a handler -

States and North Carolina. There appears to be adequate waste oil processing capacity throughout most of the -

-

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-93 4/1191 Recydable Materials Market Assessment Report

and processors. Altemate Energy Resources is reported to be a fuels blender (Le., collects various types of petroleum products and other combustible chemicals, blends them and markets the mixture as an altemative fuel product), whose service area is the southeastem United States. Necessary Oil Company reportedly brokers, handles and processes waste motor oil from northwestem North Carolina around Boone. Eastem Petroleum Corporation operates out of Georgia and fumishes several tank cars for holding waste motor oil. Three of these tank cars are located in North Carolina and are used for tempomy storage of waste oil delivered by independent collectors. The oil is ultimately shipped to processors out of state by rail. The majority of the material is sold to companies that re-process it into a fuel product. Another portion of the material is sent to re-refineries which convert it back into

independent haulers. Markets are located throughout the Southeast.

Companies that recycle waste motor oil may be both handlers and processors. Some may be end users as well. In North Carolina, this is the case for several companies. Due to the nature of the material, the varied practices of waste oil generators and the general perception of waste oil as a "hazardous" material, many waste oil processors are concemed with the potential liabilities inherent in their industry. Therefore, some processors provide collection as part of their operation. This option facilitates maximum control over the quality of the waste oil they collect and subsequently provides additional quality control over the final product resulting from re-processing or re - re f~ng.

Thedistributionofwastemotoroil handlers, ascontainedintheOWRRecyclerDatabase, isfairlyeventhroughout North Carolina, with the exception of the Mountain region, where there is only one handler listed. The Figure 3.8.5 depicts the number of handlers within each region of the state:

~

a lubricating oil product. The company estimates that 200,000 gallons per month are collected from NC -

Figure 3.8.5 Waste Motor Oil Businesses Serving North Carolina

I Region Number I Mountains Piedmnl Coastal Plain TkJewater

Waste oil handlers that serve North Carolina from other states include M&M Chemical Company (Attalla, AL); Altemate Energy Resources, Inc. (Augusta. GA); Safety Kleen Corporation (Elgin, E); Southeastem Chemical Company (Sumter. SC); Necessary Oil Company (Bristol. VA); and Oldover Corporation (Ashland. VA). These companies are also listed as processors. Oldover Corporation is listed as an end user as well. All of these companies

Safety Kleen has four collection centers located in North Carolina and reports that it serves the entire state. Its centers are located in High Point, Charlotte, Garner and St. Paul. It also has a collection center in the following out-of-state locations: Chesapeake, VA (serving Eastem North Carolina, around Elizabeth City and Cape Hatteras); Greenville, SC (serving the Asheville area); and Bristol, TN (serving the Boone area). Safety Kleen has its own fleet of collection trucks, and it pic ksupwaste oil from automotive dealerships, service stations, garages and some industrial generators. Safety Kleen claims to collect approximately 3 million gallons a year from sources in North Carolina.

accept waste oil on a regional basis. -

Page 3-91 NC Recyding Market Development Sbategic Phn Project UNCITRE Recydable Materiok Market Assessment Report 4/1/91

3.8.4 Conclusion There are many advantages to recovering used motor oil. Demand for oil as a fuel is strong, since prices are generally 10 to 20 percent lower than comparable virgin fuel. Re-refining used oil only takes one-third the energy required to refme motor oil fmm crude oil (1 1).

There are alsomany obstacles toincreased oil recycling whichimpactmarketability and/orsupply inNorth Carolina as well as throughout the country. An obstacle to the acceptance of re-refmed lubricating oil in the marketplace is the common perception that the quality and performance of the materials are lower than comparable virgin products. This perception, coupled with the relatively insignificant price difference between re-refmed and refined crude products, results in a bleak future for sales of the re-refined product until either the economics or the perception changes. Procurement requirements for recycled oil products in state govemment could stimulate the market and provide endorsement for these products. Additionally, if used oil becomes classified as a hazardous waste, the higher the disposal costs for oil will result in more favorable economics for re-refining although the used oil fuel industry may be hit with more regulations. Limited re-refining capacity in the country (there are currently only five) results in prohibitive transportation costs for waste oil handlers seeking to market used oil for re-refining..

In response to the concern over improper disposal of waste oil, provisions for management of used motor oil in North Carolina were incorporated into SB 11 1. These provisions, now in effect, include a ban prohibiting landfill disposal of used oil. The practice of accepting waste oil at public landfi i had, in fact, k e n abandoned by most local govemments long before SB 11 1. While not required in SB 11 1, many local govemments have also assumed responsibility for the proper disposal of used oil by providing used oil collection repositories for public use. The private sector has responded to the provisions as well by providing waste oil collection and handling services throughout the state. Given economic incentives, further participation by the private sector in the waste oil recycling business could develop.

~

-

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3.92 4/1191 Recydable Materials Market Assessment Report

.80

'0 .70 0

O n 0 z 0 .80

0,

2

0

<

ZI .50 n

0 0

- v 0 I

e

- - .40

.3o

.15

t

.10

.05

.o 1

.o 1

.05

1 .10 I I I I I

JAN 88 JAN 87 JAN 88 JAN 88 JAN 90

- Price Paid lo Generator for Ueed 011

Free Zone

No Charge

Figure 3.8.1 Effect of Virgin Fuel Oil Price Fluctuations on Price of Used Fuel Oil

Charge to Generator

FIGURE 3.8.2

RECYCLING BUSINESSES ACCEPTING PETROLEUM MATERIALS ~

ENDUSERS

- Oldover Cop. (Ashland, VA) [HPE]

- State Wide Service and Supply (Spartanburg, SC) [PE]

- PROCESSORS

- Adion Aulo W a g e , Inc. (Murphy, NC) [PI

- Akemate Energy Resources, Inc. (Augusta, GA) pHP]

- Cherokee Resources (Charlone, NC) [HP]

- Hedage Environmental Services, Inc. (Charlone, NC) [PI

- Holston Energy, Inc. (Waynesville, NC) [HP]

- M 8 M Chemical Co. (Analla, AL) [HP]

- Necessary Oil CC. (Bristol, VA) PHPJ

- Noble Oil Services, Inc. (Sanford, NC) [HP]

. HANDLERS

- Coastal Environmental Associates (Aurora, NC) [HI

- Fayetleviile Waste Oil (FayeHevilie, NC) pi]


- Hardd Watson Waste Oil Senics, Inc. (Swansbwo, NC) [H]

- James Waste Oil Service (Charlone, NC) pi]

- Recyde System 01 WNC (Fletcher, NC) [HI


- Strayhom's Waste Oil Service (Durham, NC) pi]

- Waste Oil Service (Goldsboro, NC) [HI

- Yarbrough Oil Service (Plafltown, NC) [HI

- Piedmont Environmental Services (Greensboro, NC) [BPI

- Safety Kleen Cop. (Elgin, IL) [HP]

- Soulheastem ChemicalCo. (Sumter, SC) [HP]

- Webster Enterprises (Webstar, NC) [HP]

[E - End User; P = Processor; HI Handler; B = Broker]

UNCITRE NC Recyding Market Development Strategic Pian Projmt Page 3-94 4/1/91 Recydable Materials Market Repart

I RECYCLIXG BUSINESSES SERVING NORTH CAROLIXA


Petroleum

0 End Users Processors

A Handlers Brokers

Companies are prioritized by type of business End User. Proceaor. Handler, Broker t: P *'

4 symbol reprgents one or more recycling bun- of the Same type located in the same city

R m n a >y V\c%

FIGURE 3.8.3 NC Recyding Market Development Sbategic Plan Project UNCITRE Page 3-95 Recydable Materids Market Assessment Report 4/1/91

sarce O M k y * aicc:oy 2ctxCse

FIGURE 3.8.4 UNGITRE 4/1/91

NC Recyding Market Development Strategic Plan Project Recydable Materials Market Assessment Report Page 3-96

References (1) Culviner, Prall, "New Prospects for Old Oil," Wasre Age. November 1990.

(2 ) "Future of Recycling Oil Hinges on 'Hazardous Tag,"' Recycling Today. April 1989.

(3 ) Solid Wasre Reducrion: Alternurivesfor Norrh Carolina (Raleigh, North Carolina: Ofice of Waste Reduction, Pollution Prevention Program, October 1988).

(4) Apotheker, Steve, "Used Oil Doesn't Wear Out--It Just Gets Dirty," Resource Recycling, November 1989.

(5) "Future of Recycling Oil Hinges on 'Hazardous Tag,"' Recycling Today, April 1989.

(6) Ibid.

(7) MunicipalSolid Wasre News, February 1991.

(8 ) "Future of Recycling Oil Hinges on 'Hazardous Tag,"' Recycling Today, April 1989.

(9) Apotheker, Steve, "Used Oil Doesn't Wear O u t 4 Just Gets Dirty," Resource Recycling, November 1989.

(IO) Ibid.

(11) Ibid.

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Page 3-97 NC Recyding Market Development Strategic Plan Project UNClTRE Recydable Materids Market Assessment Reporl 4/1/91

3.9 CONSTRUCTION

3.9.1 Description Construction waste is a general category which includes many different types of recyclable materials generated during the process of building structures. Historically, less emphasis has been placed on construction wastes than on many other components of the municipal waste stream because of the perception that construction materials are relatively benign to the environment

The relative lack of concern about disposal of construction wastes has resulted in a corresponding shortage of quantitative information about this particular waste stream. This shortage of data is also due to the absence of a standardized, comprehensive definition for the term consrrucfion wusfe. Franklin Associates, Ltd., estimates in a 1986 report to the EPA that construction waste and demolition debris comprises 23 percent of municipal solid waste, or 262 pounds per person annually (1).

Demolition debris is usually addressed with construction waste. Conshuction!demolition (CD) waste is therefore generated as a result of building construction, renovation or demolition. Land clearing, a precursor to most new construction, generates additional materials. Waste materials generated as a result of road and bridge building, repair or obliteration may also be considered additional components of C/D waste.

C.T. Donovan Associates, Inc., tabulated a comprehensive list of the materials found in C/D waste as shown in Figure 3.9.1 (2):

-

Figure 3.9.1 Typical Composltion of Construction and Demolition Waste

Waste Type Waste Source

Asphan Roads, bridges, parking lots Contaminants Lead-based paint, asbestos, fiberglass. fuel tanks F e m s Metal Pipes, roofing, flashing, steel Ghss w*, doors Nonferrous Metal Aluminum, copper, brass, stainless steel Plaster Sheetrock, gypsum, drywall Plastic Vinyl siding, doors, windows Rubble Tar-based Materials Shingles, tar paper White Goods Appliances Wood, Harvested Slumps, tops, lim&s Wood, Treated Wood, Untreated Framing, scraps

Dirt. b W , cinder blocks. concrete

Plywood, pressure-treated, creosote-treated, laminates

Sourca: C.T. Donovan Assoaates. Inc., 1990.

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-98 4/1/91 Recydable Materid:. Market Assessment Report

This list reveals components of the c/D waste stream that are obviously not of a "benign" nature, and serious consideration should be given to the proper recovery and/or disposal of c/D waste stream components.

There is a growing need for state and local govemments, including North Carolina, to explore further the nature of the C/D waste stream. Waste diversion and recycling goals provide additional incentive to evaluate this waste stream and the potential marketability of its recyclable components.

~

3.9.2 Market Structure Because of material variability, there is not an established marketing infrastructure for C/D waste materials per se. Commingling of the materials, which usually occurs at the source, causes considerable contamination problems and separation difficulties. However, with appropriate materials recovery, many of the separate components of the C/D waste stream can be marketed through existing secondaty material markets.

Several reasons exist for the relative lack of C/D recycling facilities. The initial expense of equipment needed for screening, crushing, shredding,etc., isprohibitive relative to theunknown,possibly marginal, valueof the products generated from such a facility. The operator of such a facility assumes considerable risk and potential liability for incoming materials which could be contaminated with hazardous wastes (especially contaminated soils that are difficult to detect immediately).

Some of the materials listed above, such as metals, plastic, glass and white goods, constitute a relatively small fraction of the C/D waste stream. These materials will not be discussed here, except to say that the value of some of these materials, especially copper, provides enough of an economic incentive to result in consistent recovery of that material at the source. The most predominant recyclable materials in C/D waste that will be discussed further are wood waste, rubble and construction materials.

Wood waste is a major component of the C/D waste stream. Construction wood waste can be processed into several marketable products. Recovery of wood waste involves sorting and processing. Contaminants such as nails, plaster, etc., must be removed from the wood. Wood that is not suitable for re-use as lumber can be shredded into sizes and used as stakes, mulch, firewood or for use as a bulking agent in sludge co-composting. Treated wood and lead-based painted wood have limited applications due to the lead content and the nature of the chemicals used for treatment.

Land clearing operations render considerable quantities of wood in the form of trees, stumps and brush. Trees of desirable size and species may be marketed to lumber companies. Other trees can be marketed as pulpwood and sold to paper companies. Stumps require special processing equipment, but can be processed into mulch or wood chips for fuel. Dirt is a marketable product when recovered from stump removal and processing operations. Brush is easily processed into a mulch product. Mobile processing equipment is ideal for land clearing operations and reduces waste at the source, thus eliminating the need to haul the materials to a disposal facility. A recovery and transportation strategy is required, however, to move the materials off site.

Rubble usually consists of bricks, concrete scrap and cinder blocks. Bricks can be recovered from construction activities and reused in masonry, landscaping and small drainage projects. C ide r blocks, rocks and broken concrete can be used as fill material and in roadbeds.

Construction waste includes many materials, as shown in the above list. Some of the more common are asphalt, plaster, roofmg and piping materials. Recovered asphalt can be reused to resurface roads and bridges. Stapleton Resource Recycling, Inc., in Bridgeport, CT, processes 250.000 tons per year of reclaimed concrete, brick, cinder block and waste asphalt. The incoming materials have to be source separated. The company produces three grades of aggregate material which meet state specifications for road aggregate. The Connecticut Department of Transportation purchases the material as a paving sub-base for roads and bridges (3).

Asphalt roofing shingles can be recovered for their value as a paving alternative.

Gypsum has been recovered and returned to gypsum manufacturers for making new wallboard. Another creative application by a private venture in Michigan was to use gypsum wallboard as a lime substitute on a corn crop on an experimental basis (4).

-

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Page 3.99 NC Recyding Market Development Strategic Plan Project UNCITRE Recydable Materials Market Assessment Report 4/1/91

Some companies have explored processing systems that can handle mixed C/D waste. Pacific Topsoils in Bothell, WA, generates landscape products from mixed C/D waste through a patented wash system. Star Recycling in New York also handles mixed C/D waste. Their system uses mechanical and manual sorting techniques. Products from the system include wood chips marketed as fuel, aggregates for paving material and f ~ s h for landfill cover. Roofmg material and plastics are also recovered (5).

3.9.3 Markets Serving North Carolina

end users of C/D waste. Figure 3.9.3 provides a map illustrating the geographic distribution of these companies Listed in Figure 3.9.2 are companies identified in the OWR Recycler Database as brokers, handlers, processors or

within North Carolina. The list contains only two companies and thus should not be viewed as an exhaustive listing of companies which may utilize or handle secondary C/D materials in their business.

In North Carolina, Altemative Recycling Technologies, listed as a handler, processor and end user, builds houses and cabinets using waste materials recovered from construction projects. For houses, approximately half of the wood comes f” secondary materials generated in Watauga County. The company uses when possible doors and fixtures that have been reclaimed from other buildings. About half of the lumber used in making cabinets and other carpentry work comes from materials recovered elsewhere.

Also listed is Horton Iron & Metal Company in Wilmington. This company has identified itself as a broker, handler and processor of demolition materials. The materials it accepts and recovers, however, are restricted to ferrous metals primarily from the demolition of industrial plants, such as piping, boilers and steel beams.

A creative use of rubble in North Carolina is for artificial reefs. The Marine Fisheries Division (NCDEHNR) has created several artificial reefs from rubble generated from demolished roads and bridges and broken concrete pipe. Widespread use of this market is limited by the costs associated with transporting the materials f” the point of generation to the coast.

3.9.4 Conclusion Efforts to market C/D waste materials can be successful, but usually require source separation by material type. Source separation is made difficult at construction sites because of the number of contracton involved. Coordination efforts between contractors could facilitate source separation. In contrast, demolition projects usually involve only one contractor, but the materials are already commingled and require extra effort to separate (6).

Valuable materials in the construction waste stream, such as copper, are invariably recovered because the material’s value warrants the effort required to separate it. Specialized markets for some materials could continue to develop as tipping fees go up or when materials are banned from the landfill. Markets for any recovered materials from the C/D waste stream will be highly localized, due to the bulky nature of the materials, (hence high shipping costs) and relatively low market value.

Entrepreneurs wishing to start C/D recycling operations may be discouraged by high initial costs, potential liabilities and unproven profitability of such ventures. Local governments could facilitate the development and profitability of these ventures in several ways. Once a legal option for C/D waste disposal becomes available, illegal dumping laws could be enacted and enforced. Building regulations requiring a minimum percentage of secondary materials could also enhance C/D waste recycling. Additionally, alternatives to non-recyclable construction materials could be explored.

Procurement laws can positively impact the recycling industry by ensuring markets for recovered materials. Road construction, in particular, can utilize a large portion of its material needs with secondary C/D waste materials. In its report to the 1991 General Assembly, the Legislative Research Commission proposes a bill which would require procurement of recycled demolition debris by the NCDOT in roadbed stabilization and construction projects (7).

Though the exact amount of C/D waste generated in North Carolina is not known, it is believed to be a significant amount. Rising tipping fees will facilitate free enterprise solutions to some of the obstacles inherent in C/D waste recycling; however, the limited end uses for the recovered materials is where most investigation is warranted by state and local governments concerning their role in resolving these issues.

-

-

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-100 4/1/91 Recydable Materids Market Assessment Reporl

FIGURE 3.9.2


CONSTRUCTION MATERIALS

* ENDUSERS

- Alsmative Racyding Technologies (Boons, NC) [HPfl

PROCESSORS

- Honon Iron 8 Metal Co., Inc. (Whington, NC) BHP]

[E I End User; P = P m o r ; H -Handler; B Broker]

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rr 0

e' m

II) m

4


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NC Recyding Market Development Sbategic Plan Project Recydable Materials Market Assessment Report

References ~

(1) Apotheker, Steve, "Constmction and Demolition Debris--The Invisible Waste Stream," Resource Recycling, December 1990.

(2) b i d .

(3) Rid.

(4) Spencer, Robert, "Recycling Opportunities for Demolition Debris," BioCycle. November 1989,

(5) Apotheker, Steve, "Construction and Demolition Debris-The Invisible Waste Stream," Resource Recycling, December 1990.

(6) Development of a State Strategy for theManagement of Solid Waste and Infectious Wastes Legislative Research Commission (Raleigh, North Carolina: General Assembly of North Carolina, 1991).

(7) lbid.

-

Page 3-103 NC flecyding Market Development Strategic Plan Project UNCITRE flecydable Materids Market Assessment Report 4/1/91

3.1 0 TEXTILES

3.10.1 Description The general category of textiles includes woven or knitted cotton, wool, polyester, synthetic and synthetic-blend products, and stuffing products. Textile wastes are generated both industrially and through consumer use.

End users, processors. brokers and handlers identified through the OWR Recycler Database are listed in Figures 3.10.1 and mapped in Figures 3.10.2 and 3.10.3. In all. there are 28 textile recycling businesses in North Carolina. Taking into account that many of these companies perform more than one recycling function, there is a total of eight companies that serve as end users, 17 with processing facilities, 14 as brokers and 16 as handlers.

3.10.2 Market Structure After collection, scrap textiles generally go through a grading process during which textile scraps are separated and assessed as to their value. Large textile scraps that are clean and in good condition usually receive a higher grade than small, dirty scraps. High-grade scraps can be sold to an end user and/or processor at a greater value thanlow-grade scrap. Owing to the tedious nature of hand sorting large quantities of wastes, scrap textiles are often shipped to third world countries that provide attractive, low cost labor forces.

Processors, brokers and handlers generally collect from small and medium-size mills. They prefer to receive shipments or pick up goods on a regular basis but will accept one-time or irregular spot shipments.

Transportation of waste textiles can be economically problematic for the textile recycling companies. Because textiles are light in relation to the space they consume, shipping loose textiles is inefficient. Generally. waste textiles are compacted previous to shipment to increase the amount of scrap that can be transported in one haul. Compacting waste textiles is essential for overseas shipping.

One hindrance to waste textile recycling businesses is that shipments of industrial scrap may contain trash and other obsolete products, according to a processor of textile wastes located in Burlington, NC. He explains that increased tipping fees for the state’s landfils could result in the inclusion of trash products in textile shipments. By diverting their non-textile wastes from landffi to scrap recyclers. textile industries could avoid local disposal costs.

Some textile wastes cannot be processed in the United States because of labeling restrictions. By law, textile manufacturers are required to identify the contents of their products. Because the components of textile scrap are not always possible to determine, these scraps cannot be marketed domestically and are often shipped to other countries with less stringent regulations.

3.10.3 Markets Serving North Carolina According to infomation gathered through the OWR Recycler Database, there are eight end users of textile wastes in North Carolina. Four end users are located in the Mountain region, and four are located in the Piedmont region. These end users often receive supplies directly from the industries that generate waste textiles.

End markets to be discussed in this report are table linens, rewind yam, hand-woven rugs, Dupont polyester wood pulp sheets, wiping cloths and rags. Due to the competitive nature of the textile recycling business, many of these companies released information on an anonymous basis. Other markets that exist in North Carolina include stuffing, paper, carpet underlay and socks.

UNCITRE NC Recyding Market Development Sbategic Phn Project Page 3-104 4/1/91 Recydable Materiak Market Assessment Report

Table Linens. The OWR Recycler Database identifies one manufacturer of table linens in the Piedmont region of North Carolina that consumes textile wastes. A company spokesperson explains that these table liens contain polyester, virgin cotton and 10 percent recycled material. The company does not plan to increase its consumption of secondary material.

RewindYarn. One company located in NC’s Mountain region that produces rewind yarn is identified through the OWR Recycler Database as an end user of yam scrap. According to a company spokesperson, this rewind yard contains 95 percent yarn scraps. All of the yarn wastes consumed in production are generated within

no plans for expanded use of yarn scraps.

Hand-WovenRugs. One manufacturer of hand-woven rugs located in the Mountain region of North Carolina is identified through the OWR Recycler Database as an end user of textile wastes. The rugs are produced from 100 percent textile scraps. According to a company spokesperson, of the 360 tons of textile wastes consumed each year, 85 percent is generated from within North Carolina, and the remainder is imported from adjacent states. The company has no plans for expansion.

Dupont Polyester Wood Pulp. According to the OWR Recycler Database, the one identified nianufacturer of Dupont polyester wood pulp sheets is located in NC’s Mountain region. Dupont polyester wood pulp sheets are non-woven polyester cloths impregnated with wood pulp. This cloth is produced from 100 percent recycled materials and can be manufactured into disposable garments such as surgical gowns and gloves for the medical industry. Of the 1,500 tons of waste textiles consumed each year, 95 percent is generated from within North Carolina. The company has no plans for expanding.

Wiping ClothsandRngs. Five North Carolina companies are identified through the OWR Recycler Database as consuming textile wastes in the production of wiping cloths and rags. Three of these companies are located in the Mountain region, and two are located in the Piedmont region While a majority of the textile wastes consumed by these companies is generated from within North Carolina, scrap materials are also imported from other states and countries. The wiping cloths and rags are produced from 100 percent recycled polycotton knits, polycotton wovens. fleece, plywood pulp, denims, old t-shirts, cheesecloth and defective cloth.

The value of textile wastes relative to the wiping cloth and rag market is determined by their quantity and quality. In general clean. absorbent textile scraps that are received in bulk are the most valuable.

None of the manufacturers of wiping cloths and rags have plans for expansion.

End- user markets for blankets, non-wovens, plastics. fine writing paper, auto bedding, padding, sanitary napkins, gauze, rope. twine, underlay for furniture, Band-Aids, gloves and latex are not known to exist in North Carolina. As a result, processors, brokers and handlers often market textile materials to other states and/or countries.

The OWR Recycler Database identifies 18 processors of waste textiles throughout North Carolina. As shown in the previous figures, there are 12 processors in the Piedmont, five in the Mountain, and one in the Tidewater

North Carolina. Total consumption quantities of raw material are unavailable. The company currently has -

region. These processors perform one or more of the following functions: sorting and baling, removing yam from cones or paper cores, blending and cleaning, breaking down materials and tearing open fiber lines.

Textile wastes are often processed through a garneter, or tearing machine. The material being processed is broken down and combed with long needles to eliminate waste products. There are several different versions of the gameter machine with capacities varying between 5,000 and 10,ooO pounds per hour.

Page3-105 NC Recyding Market Development Sbalegic Phn Project UNClTRE Recydable Materiak Market Assessment Report 4/1191

One processor of military surplus clothing, located in Jacksonville, is identified by the OWR Recycler Database. The company acquires clothing from nearby military bases, cleans and repairs it and sells it to end markets in North Carolina and in the northeastern states. Other outlets of used clothing include Good Will Industries and the Salvation Army.

NC processors receive their material from a variety of US and intemational sources. They may receive shipments from brokers and handlers or directly from factories. While transportation fees are negotiated on a case-by-case basis, the processor often arranges and pays for shipment of the waste textiles.

Some processors export their recycled textile products to Europe, North Afiica and Latin America for reprocessing into mattress batting, sleeping bag insulation and padding forjackets. One processor explains that it exports about half of its recycled textiles to Westem Europe, Latin America and Asia. While transportation fees are negotiated on a case-by-case basis, two of the processors say they usually pay for overseas shipping; two other processors say that they pay approximately 50 percent of the time.

The OWR Recycler Database identifies 14 companies in the Piedmont region of North Carolina that provide brokering services. Of these brokers, 10 are located in the Piedmont region, three are located in the Mountain region, and one is located in the Tidewater region. One broker contacted explains that it collects 80 percent of the scrap textiles (cotton, hosiery, synthetic, thread, wool and yam wastes) from waste generators within North Carolina. The remainder of textile scraps marketed by this company are gathered from neighboring states.

There are 16 handlers of textile wastes in North Carolina. Ten of these handlers are located in the Piedmont region, five are located in the Mountain region, and one is located in the Tidewater region.

North Carolina handlers contacted receive most of their waste materials from domestic textile mills and neighboring states. One Asheville handler, for example, specifies that he accumulates scrap textiles (hosiery mill waste, wiping cloths and non-wovens) from within a 100-mile radius.

These handlers generally sell their textile wastes to the shoddy industry (which manufactures low quality fabric stuffing from wholly or partly reclaimed wool), the yam industry, and the arts and crafts industries. Handlers are charged freight on delivery (FOD) for the scrap textiles that they receive.

3.10.4 Conclusion The textile scrap that is recycled in North Carolina is generated primarily from the manufacturers of textile products. These scraps are collected, graded (sorted and assessed for value), and sold to domestic and out-of-state and foreign markets. None of the textile recyclers contacted has plans to expand its operations.

Market conditions for textile scrap depend on the condition of the scraps being sold. High-grade textile waste is valuable and is in high demand. Low-grade scrap can contain unusable products and can be difficult to market. Because demand for textiles is relatively constant, only mild price fluctuations occur.

There are several obstacles to the recycling of textiles. The scrap collected by textile recyclers may contain industrial wastes and trash products. This is a problem that could effect North Carolina since industrial generators might include other wastes products in their scrap textile shipments in order to avoid the tipping fees from disposing of these wastes at local landfills.

Another market limitation for textile waste recyclers is the lack of end users in North Carolina. While North Carolina provides a strong end-user market for textile wastes used to produce table linens, rewind yam, hand-woven rugs, dupont polyester wood pulp, and wiping cloths and rags, there are no in-state end markets for materials used to produce blankets. non-wovens, plastics, fine writing paper, auto bedding, padding, sanitary napkins, gauze, rope, twine, underlay for furniture, Band-Aids, gloves and latex.

UNCITRE NC Recyding Market Development Strategic Plan Project Page 3-106 4/1/91 Recyclable Materials Market Assessment Report

Transportation is a major economic drawback to the recycling industry. Because scrap textile is light relative to the space it consumes, it is usually condensed for shipping. Densifying textile wastes increases the amount of scraps that can be hauled and is essential for long distance marketing. According to recycling officials contacted, many textile recyclers avoid high transportation costs by purchasing their textiles from nearby sources.

Manufacturers of products using scrap textiles in the state are not planning to increase their demand for material unless demand for their products increase. This is not foreseen because of the current recessionq

small. privately-held companies that employ staffs of less than 100 people. Any expansion of their business would result in modest staff increases at best.

~

environment and the impact high gas prices have on production costs. Most of the end users interviewed are -

Page 3-107 NC Recyding Market Development Stategic P b Project UNClTRE Recydable Materials Market Assessment Report 411191

FIGURE 3.10.1

RECYCLING BUSINESSES ACCEPTING TEXTILE MATERIALS ~

ENDUSERS - H & W Waste Co. (Burlingion, NC) [PI

- Cascade Fibers Co. (Sanford, NC) [Pa

- J.G.Thwnps~~Enierpn'ses(Spmd~,NC)[BHPEJ

- Jerry Russell Recycling (Star, NC) [HE]

- King's Kouniry Klassics (Hendersonville, NC) [BHPE]

- S o n m Produds Company (Harlsville, SC) (BHPE]

- Sun Belt Textiles, Inc. (Kings Mountain, NC) [PE]

- Halifax Recycling, Inc. (Roanoke Rapids, NC) BPI

- J & E Salvage (Jacksonville, NC) BHP]

- Newco Fibre Company (Charlotte, NC) BPI

- Sbsman Cop. (Asheville, NC) [PI

- Sun Ben Recycling (Lexington, NC) BPI

- HANDLERS

- Synmt Fbrs, Im. (Charlone, NC) [BHPE] - Bales Textile Sales. Inc. (Hamptonville, NC) [BH]

- Textile Waste Company, Inc. (Pneville, NC) [EPE]

- TiCMar, Inc. (Sheby, NC) [ P a

- PROCESSORS

- Add Paper Cores (Roddngham. NC) [HP]

- Belmont Wping Cbth Co. (Charlone, NC) [PI

- Bdlag International Carp. (Newell, NC) BHP]

- Bowers Fibers, Inc. (Charlotte, NC) [PI

- Cathy Yarn Co., Inc. (Mount Holly. NC) [HP]

- CISCO (Greensboro, NC) pi]

- Day Spring, Inc. (Lawrencaville, GA) [BH]

- Edgecambe Recyding Cop. (Tatboro, NC) [BH]

- Federal Wasie Paper Co. (Burlington, NC) (HI

- Feibus & Co., Inc. (Charlotte, NC) pi]

- Henry Fibers, Inc. (Gastonia, NC) [BH]

- IsaacGradman Co. (Asheville, NC) pi]

- J. E. Herndon Co. (Kings Mountain, NC) pi]

- Eastem CarolinaVocalional Center (Greenvile. NC) BHP] - Lany DavisTexlile Division (Haw River, NC) [BH]

- GDS Recycling Services ( h o v e r , NC) BHP] - Paul Godwin Co., Inc. (Burlington, NC) pi]

[E - End User; P - Processor; H =Handler; B - Broker]

UNCITRE NC Recyding Market Developmenl Sbategic Plan Project Page 3-108 4/1/91 Recydable Materials Market Report

Textiles (cont'd)

* BROKERS

- AdwBaugh, Inc. (Cramenon, NC) [B]

- Matthew P. McQudd CO. (Charlotte, NC) [B]

- Moppo Produds, Inc. (Charbne, NC) [B]

- Red Hill Cop. (Gettysburg, PA) [B]

[E I End User; P = Processor; H I Handler; B I Broker]

Page 3-109 NC Recyding Market Development Strategic Plan Project UNCITRE Recydable Materials Market Assessment Report 4/1/91

krcr OWR iiecyoc 3 r c c : q set- R o ~ c d 3y W-X

UNCITRE NC Recyding Market Development Strategic Plan Project FIGURE 3.10.2 4/1/91 Recydable Materials Market Assessment Report Page3-110

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3 .3

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FIGURE 3.10.3 NC Recyding Market Development Strategic Plan Project UNCITRE Page 3-1 1 1 Recydable Materials Market Assessment Report 4/1/91

3.1 1 CHEMICALS

3.11.1 Description Chemicals are substances (as an element or a chemical compound) obtained by a chemical process. Chemicals in the municipal solid waste stream are derived from both household and industrial use. Household cleaning products, automotive products, paints, solvents and antifreeze all contribute to the chemical waste stream. Because they have markets in North Carolina and the surrounding region, the materials to be discussed in this category are solvents, antifreeze and dyes.

End users, processors, handlers and brokers of chemicals identified through the OWR Recycler Database are listed in Figures 3.11.1 and are mapped in Figures 3.11.2 and 3.11.3. It is important to note that due to mapping limitations, facility locations are identified by their highest level of service to the market.

3.11.2 Market Structure According to the results of the OWR Recycler Database. there are seven end users of chemicals. Of these companies, one distills solvents forreuse, three blend solvents and other chemicals to make fuel, two process spent antifreeze, and one processes spent dyes. The OWR Recycler Database shows that there are four brokers of chemical materials. While these brokers deal primarily with solvents, most will also broker antifreeze and other chemicals. One of the brokers is specific to the dye industry. The OWR Recycler Database also identifies fourteen out-of-state companies that recycle chemicals. While each of these companies processes spent solvents, four also process used antifreeze. one processes spent dyes, and three process spent paint.

Solvents Solvents are substances, usually liquid. that are capable of dissolving othersubstances. Solvents are generally used as degreasing agents in the metal and electronics industries, and are also used in manufacturing paints and coatings. Spent solvents have two distinct end markets: they can be distilled and reused as solvents, or they can be blended into fuels for industrial use. Disfilled Solvenrs. Spent solvents contain grease, oils, paints and/or water. The amount of spent solvent generated and recovered in North Carolina is unknown. End users and brokers collect spent solvents directly from industrial generators or through "milk-run" pick ups.

Fees for transporting spent solvents vary depending on quantity, quality and location variations. Generally, generators of spent solvents are charged a flat fee to ship large supplies of spent solvent over a short distance. Supplies that must be transported longer distances usually have cost added to each gallon of material being shipped. Fees for transportation are negotiated on a case-by-case basis.

Thehigherthepercentageofsolventinaspent solventsolution,themorevaluable itis to adistillingcompany, and the more cost effective it will be for a generator to have transported.

If an end user is delivering recycled solvents to an industry, it will not charge a transportation fee to pick up a spent solvent solution. AU but one of the businesses that recycle solvents in North Carolina are located in the Piedmont area. The reason for this grouping is that the solvent recycling industry is very dependent on industrial generators of spent solvent.

According to one broker, high percentage solvent solutions are a valuable commodity and are generally shipped at the buyer's expense. Dirty solvent solutions that will yield low solvent recovery are often transported at the generator's expense.

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Page 3.1 12

Solvents are recovered through distillation. During this process spent solvent is heated to a level at which only its solvent components will evaporate. The evaporated solvent is condensed and achieves a level of purity that is high enough to resell for degreasing purposes. The remaining bottom stream components (Le.. grease, oils and paints) are disposed of in landfills, or if they contain high Btu’s, they can be blended with fuels and burned for industrial uses (see Blended Fuels.) The volume of solvent that is recovered through distillation depends largely on the purity of the spent solvent. Low-grade spent solvent solutions can consist of over 80 percent waste material and less than 20 percent

period of time and produces a considerable amount of still bottom waste.

The most important technical concern for processors is obtaining maximum recovery of solvents from aspent solvent solution. One reason for this concern is that solvents are considered a hazardous waste. This makes disposal very expensive. The greater the volume of solvent that is recovered from a spent solvent solution, the less the processor will have to pay for still bottom disposal.

Another technical concern for processors of solvents is proper waste segregation. Mixing solvents can produce unwanted chemical reactions and can also result in decreased value and uses of the solvent.

Because spent solvent is classified as ahazardous waste, worker safety and environmental issues are regulated by the EPA. The processors in North Carolina agree that there are no problems with achieving EPA standards, but that the required pennits add to their expenses.

BlendedFuels. Spent solvents that contain organic materials and have high Btu (British thermal units) values can be burned as fuel for industrial use. Waste products that are undesirable to the solvent distillation industries (such as oils, paints and lacquers) often contain high Btu’s and are valuable for fuel blending.

During the fuel blending process, gathered solvent waste is tested for compatibility and mixed together in a bulking process. Solvents with low Btu values (between 5,000 and 8.000 Btu’s per pound) are then mixed with more pure solvents to raise the solution to 10,000 Btu’s per pound. Since they are not paid extra for a more pure solution, the goal of the fuel blending companies is to create a solution with little or no more than 10,OOO Btu’s per pound. This fuel is burned in cement kilns and must be composed of no more than 4 percent chlorine and 20 percent water.

Fuel blendingcompanies are paid by industrial wastegenerators to process anddisposeof theirspentsolvents. One fuel blending industry spokesperson explained that while it costs a company $300 to $400 to send a 55-gallon barrel of spent solvents to an incinerator, it costs as little as $30 to $70 per barrel to sell the wastes to a fuel blender.

One major technical concern for the fuel blending industry is achieving proper chemical specifications. Laidlaw Environmental Services, for example, points out that only small amounts of halogenated solvents &e., chlorinated and flourinated solvents used primarily for degreasing industry parts) can be mixed with solvents used in fuel blending. Halogenated solvents release acidic fumes when they are incinerated which destroy processing equipment.

Old and/or dirty paints can find end use in fuel blending projects for use at cement kilns The fuel blending industry is limited by the types of paint it can consume. Some paints have an aluminum powder base and cannot be used for fuel blending. Paints that are dried or that are not flowable are also not of use to the fuel blending industries.

recoverable solvent. Distilling these low grade solutions recovers small quantities of solvents over a long -

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Antifreeze Antifreeze is an ethylene glycol-based substance added to a liquid (e.g., water in an automobile engine) to lower the freezing point.

Used antifreeze is collected from gas stations, radiator shops and car dealerships. The antifreeze recycling businesses contacted agree that there is no minimum limitation to the amount of antifreeze they will accept. These end users generally collect antifreeze through "milk-run" pick ups or through brokers. Spent antifreeze can be distilled to recover and resell its remaining ethylene glycol. The end users of spent antifreeze are the distilling companies that process them.

One technical limitation to processing antifreeze is the difficulty of separating antifreeze from water. The molecular bond between antifreeze and water is very strong and takes considerable energy to break. This factor causes processors of antifreeze to invest more money in the distillation process for antifreeze than for other chemicals. According to a spokesperson from Chemstreams, an alcohol and glychol recycler in Matthews, NC, a process is currently being explored to increase the efficiency of the waterhtifreeze separation process.

Dyes Dyes are soluble and insoluble materials used for their coloring capabilities. Dyes recovered for recycling include acids, basics, dispersive, reactive, vat dyes, soluble vat dyes, pigments, whiteners, flourescents and brighteners. Dyes can be recycled and resold to users of virgin and secondary dyes. Different dyes are mixed during processing, but liquid and powdered dyes are never combined.

According to the dye recycling businesses contacted, transportation of dyes to an end user market is not a problem because dyes are valuable, non-hazardous materials that do not require restrictive and expensive regulatory permits. Transportation of spent dyes is generally paid at the broker's or processor's expense.

3.11.3 Markets Serving North Carolina

Solvents DisMedSolvenrs. One end user of spent solvents located in the Piedmont region was identified through the OWR Recycler Database as serving the eastern United States. This companycollects spent solvents directly from industrial generators and charges the generator for transportation expenses. The solvents are collected in at least 55-gallon drum quantity or by the company's vacuum truck The two brokers of spent solvents in North Camlina identified by the OWR Recycler Database are both located in the Piedmont area and service the eastern United States.

BlendedFuels. Three fuel blending companies identified through the OWR Recycler Database provide end markets for high Btu solvents. All are located in the Piedmont region of North Carolina. Two of the end users in North Camlina collect spent solvents in no less than 55-gallon drums. The cost of transportation is paid by the waste generator. The third fuel blending company gathers its materials through "milk-run" pick ups.

According to one fuel blending official. transportation of spent solvents that are used in fuel blending varies greatly with respect to the solution's quality (Btu value) and quantity and as a factor of the distance that it is being transported. In general, the spokesperson points out that a large quantity of high quality spent solvent could be hlinsported from any location within North Carolina for $.lo per gallon or less. Shipping a small quantity (one 55-gallon drum) of quality spent solvent. however, could cost the generator as much as $250.

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Page 5 1 14

Antifreeze Safety Kleen, the only handler of antifreeze identified through the OWR Recycler Database, is located in the Piedmont area. Safety Kleen collects antifreeze f” its service stations throughout North Carolina and delivers it to regional processing centers. Spent antifreeze collected in North Carolina is sent to Safety Kleen’s processing facility in South Carolina. Two brokers of antifreeze are also identified as being located in the Piedmont region.

The two North Carolina end users of antifreeze identified in the OWR Recycler Database are both located

radiator repairs and services only in Wake County. These end users generally collect spent antifreeze from local gas stations, radiator shops and car dealerships.

~

in the Piedmont region. One end user services the southeastem United States, while the second performs -

Dyes Classic Dyestuff. Inc..the onlv end user of m n t dves located through the OWR Recycler Database, is located in the Piedmont area of North-Carolina. Classic Dyestuff collects dyes directly from industrial generators throughout the United States. Approximately 75 percent of dyes processed by Classic Dyestuff are generated in North Carolina, South Carolina, and Georgia: 55 percent of the dyes recycled are sold to businesses in North Caroliina.

3.11.4 Conclusion

Solvents DistilledSolvenrs. The end users of spent solvents are those companies which distill them and sell them for reuse. Representatives of these solvent distilling businesses generally agree that there is never a lack of spent solvents to be processed. A constant supply of spent solvents is available to processors owing to EPA regulations which prohibit industries from storing spent solvents (a hazardous material) for more than 90 days.

When describing the abundance of spent solvents available, one representative points out that the only factor limiting recycling of spent solvents is the capacities of the end users’ processing facilities.

The largest economic obstacle to recycling spent solvents is that they are not cost effective to transport long distances. Spent solvents are usually collected by the end user at the expenseof the waste generator. Shipping fees vary with regard to the quantity and quality of spent solvents being transported and according to the distance that the spent solvents must be transported. For this reason, processors, brokers and spent solvent generators negotiate transportation costs on a case-by-case basis. Generally, the higher the percentage of solvent in a spent solvent solution, the less an end user will charge for shipping.

Since long distance shipping reduces the cost effectiveness of processing recycled solvents, processors have located themselves in industrial areas that provide an abundance of spent solvents.

The most important technical concern for distilling companies is to achieve a high percentage of solvent recovery f” its spent solvent solutions.

very stable. While there is an abundance of low quality spent solvents, there is tremendous competition for higher grades. Price competition is so fierce that on occasion fuel blending companies must accept high quality Btu solvents from a generator without being paid for their services. Without these high grade spent solvents, fuel blenders would not be able to reach the cement kilns’ 10,ooO Btu per pound minimum limit. (There is an additional cost charged to the fuel blender for each gallon of blended fuel that is sold below the cement kilns’ specifications.) Competition among end users has led to severe price fluctuations for high Btu value spent solvents.

Blended Fuels. According to one fuel blending company official, the spent solvents market for fuels is not -

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The greatest technical concem for the fuel blending industry is producing a fuel that achieves the cement kilns' specifications. According to one fuel blending company spokesperson, paints are advantageous to the fuel blending industry because they have high Btu's, but the supply of spent paints is not strong.

Antifreeze Representatives of the antifreeze recycling industry consider the supply of antifreeze in North Carolina to be inconsistent in quality and quantity. The technical and cost limitations to processing antifreeze are the difficulties of separating antifreeze from water. The cost of currently available technology to perform this separation discourages localized recovery and processing.

Dyes Although there is a steady supply of spent dyes available, constant advances in textile dying technology are . .. . limiting the amounts of spent dye available for reclamation.

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FIGURE 3.11.1

RECYCLING BUSINESSES ACCEPTING CHEMICAL MATERIALS ~

ENDUSERS

- OHNCO, Inc. (Bridgeville, PA) MPE]

- Mdover Cop. (Ashland, VA) PPEJ

* PROCESSORS

- ARIVEC Chemicak, Inc. (Douglasville, GA) [PI

- Adion Auto W g e , Inc. (Murphy, NC) [PI

- Radiator Ad, Inc. (Raleigh. NC) [PI

- Safety Kleen Cop. (Elgin, IL) [HP]

- Southeastem Chemical Co. (Sumter, SC) lHpl

- Tabor Environmental Services, Inc. (Sparlanburg, SC) [PI

HANDLERS


- Allworth, Inc. (Birmingham, A!-) [PI - Pyramid Chemical Sales Ca. (Horsham, PA) [BH]

- Ailemate Energy Resources, Inc. (Augusta, GA) (BHP] - Rambach Cop. (Newark, NJ) M

- BiiRegional Energy Assoc., Ltd. (Fmyd, VA) [PI * BROKERS

- Chemical Sakents, Inc. (Cleveland, OH) [HP]

- Classic Dyestuff, Inc. (High Point, NC) [HP]

- ENSCl Cap. (High Point, NC) [B]

- ParkTrading Co. (Cranston, RI) [E]

- Detrex Corp. (Charlone, NC) [HP] - S U ~ I U S Dyes (Charbne, NC) [B]

- Heritage Environmental Services, Inc. (Charlone, NC) [PI

- Laidlaw Environmental Servicas (Reidsville, NC) (BHP]

- M 8 J Solvenls Ca., Inc. (Atlanta, GA) [PI

- M 8 M Chemical Ca. (AHalla, AL) [HP]

- Prillaman Chemical Corp. (Madinsville, VA) [PI

- Quicksilver Recyding, Inc. (Brkbane, CA) [PI

[E - End User; P - Processor; H - Handler; B I Broker]

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RECYCLING BUSINESSES SERVING KORTH CAROLINA I


-A symbol represents one or more recycling business of the Same type iccatd in the m e city

Campanis are priorltued by type of b m e n End User. Rocewr. Handier, Broker

p i'

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FIGURE 3.1 1.3 UNCITRE Page3-119 Recydable Materias Market Assessment Report 4/1/91

NC Recyding Market Development Strategic Plan Project

4.0 OVERALL MARKET DEVELOPMENT NEEDS AND ISSUES

4.1 INTRODUCTION The transportation, processing and end use. of recyclable materials in North Carolina.

The needs and issues discussed in this section are based on current concerns about market development expressed by local governments and recycling processors and end users. The selection of these issues is also based on their projected significance relative to the increased material supply to be derived from meeting SB 11 1's 25 percent recycling goal and directives.

The issues identified focus on the need to generate consistent quantities and quality of recyclable materials, and the need to ensure both end-user demand and demand for end-user products.

purpose of this section is to identify and describe cross material barriers to the recovery, separation, -

4.2 ENSURING A REGIONAL MATERIALS SUPPLY SYSTEM

The successful creation andabsorption ofNorth Carolina recyclable materialssupply depends on the development of a smcient recovery, processing and transportation system for all areas of the state, particularly the Coastal Plain, Mountain and Tidewater regions.

NC's recycling industry is farmore developed in the Piedmont than in the other regions, but there are still gaps in the region that need to be addressed. (See Figure 2.1.) The Piedmont region possesses the best system for aggregating recyclable material supply and moving it to intermediate and end-use markets. (See Section 2.1 and 2.2 for a discussion of concepts, terms and recycling businesses). This region is home to the state's industrial base and three largest population centers: the Triangle (Raleigh, Durham, Chapel Hill), the Triad (Greensboro, Winston-Salem, High Point) and Mecklenburg County (Charlotte metropolitan area). The region also has the state's best infrastructure. (According to the NCDECD's "Strategic Plan -- 1991 to 1995," infrastructure is defined as "the community assets and services necessary to support a business." Infrastructure qualities include transportation, energy, roads. utilities, communication and industry development sites.)

The Mountain and Coastal Plain regions are less populated and possess a less developed industrial and recycling system than the Piedmont Both possess equivalent population and infrastructure resources. The Tidewater region is by far the least developed and populated region in the state, but is home to the state's two ports, Wilmington and Morehead City. Recycling activity in the Tidewater region lags the other regions.

Recyclable materials supply depends on the development of a sufficient recovery, processing and transportation system for all areas of the state, particularly the Tidewater region.

If local governments, industries and institutions are to collectively meet supply generation and absorption goals, a material supply system needs to be developed. This, of course, depends on the assurance that end-user markets are available and willing to accept greater supply. The resulting businesses and jobs created to achieve this goal could have an additionally positive impact on the state's economy.

Recyclingofficials in states adjacent to North Carolima havesimilarobservationsabouttheirstate's material supply system. AU officials agree that there is a need for consistent distribution of recycling businesses through their states, aneed for improved cooperation among counties and municipalities and aneed to encourage mral recycling. This consensus could be a first step towards the investigation of ventures that could improve NC's material supply system as a by-product of inter-state initiatives.

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4.3 ENSURING HIGH QUANTITY AND QUALITY MATERIAL SUPPLY TO END USERS

To meet current andanticipated end-user demandsforfeedstock, NC industries and local governments mustfurnish high quantities of high-quality material.

The use of recycled materials as feedstock presents a special set of challenges to end users because there are a large number of sources. Rarely can one or several sources provide significant feedstock quantities. Consequently, the challenge of aggregating quantities of materials, processing them for transportation and meeting end-user

As described in Section 4.2, NC’s rural characteristics of low population and lack of infrastructure impede the efficient recovery processing and transportation of recyclable materials. The effects of this scenario are felt primarily by the local governments. Because local govemments hold permits enabligthem to operate amunicipal solid waste incinerator or sanitary landfill, the responsibility of meeting SBI 11’s 25 percent recycling goal will fall largely on their shoulders.

Costs of landfills, and recyclable material recovery and processing are the responsibility of the local governments. Financing recycling programs and fmding markets for materials are the emerging issues of concern for local recycling coordinators, public works officials and solid waste managers throughout North Carolina. The following sections address the baniers faced by local govemments in their attempt to supply consistent, high-qualitymaterial to the market place.

4.3.1 Recovery Because S B l l l passed only recently, local governments are just beginning recyclable material recovery efforts.

Local govemment approaches to ensuring sufficient quantities of marketable material reflect a mix of experimentation and caution. Some municipalities have committed themselves to curbside pick up, and drop-off and buy-back centers, or a combination of these recovery methods. Others are observing activity in other parts of the state before making a decision on the type of recycling strategy to take. As of October 1,1990. there were 265 recycling programs statewide, according to the Office of Waste Reduction (NCDEHNR). To encourage private haulers to recycle instead of disposingpotential recyclables, some counties are using financial incentives and disincentives. Raising tipping fees and using diversion credits are hvo such methods. The goal of the intermediate market players is to access a sufficient numberof industrial waste generators and designatedlocal govemments to meet end-user demand. Organized material recovery programs in the state are on the increase; however, in and of itself this may not guarantee an adequate quantity and quality. This is an issue of concem to the 58 counties in the state with populations of 50,000 or less. Meeting the challenge of creating strong recovery systems will likely be rewarded by high demand from processors and end users of recyclables. such as antifreeze, steel food cans, old corrugated containers (post-consumer), high-grade paper, clear and brown glass, PET, HDPE, PVC, LDPE and PS. Some representatives who process and use these recyclable say that they will “take as much of these materials as they can get.”

4.3.2 Processing The dij7culry andcost of removing contaminants isa barrier to the effective marketing of recycledmaterials. This is especially true for materials which have a low market value andfor those which are not traditionally recovered, such as constructionldemolition debris.

Once recovered. most materials require further processing before shipment to an end user. Removing contaminants

efficient transportation reduces the processor’s transportation costs and increases the distance the material may be transported economically.

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specifications becomes a responsibility of the intermediate market (broker, handler and/or processor). -

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by the processor increases the value of the material and its desirability to the end user. Preparing the material for -

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Certain materials share the same bamers to cost-effective processing. Plastics, paper and textiles, for example, are sometimes collected in mixed batches that must be graded for quality and type of formulation. Contaminants must also be. removed. Although hand and visual sorting operations yield the desired results, manual labor adds significantly to the cost and time required to prepare recycled material for shipment to the end user.

In the cases of glass and antifreeze, processing technology has been developed to enhance material purity, but is priced beyond the budgets of many designated local govemments and small processing businesses. The glass industry already offers sophisticated equipment to remove metal and other contaminants, but these systems are scarce; most glass processors possess equipment capable only of crushing. Antifreeze purification is difficult because of the strong molecular bond between water and antifreeze. Costly equipment is needed to accomplish this, but only a few in-state processors can afford to purchase the separators. There are no technological solutions to mixed paper or textile sorting. Automated plastic sorting technology is only beginning to be available beyond a demonstration project basis.

Contamination of potential recyclables by people is a problem that sometimes gets overlooked. However, the presence of food wastes, and assorted trash and incompatible material (such as pyrex being mixed with container glass) can lead to processing complications and/or contribute to end-user rejection of large shipments of materials.

The use of specialized or toxic formulations in the manufacture of certain products has complicated material separtion. Some metals contain unnecessary toxins that make them impossible to recycle because of the health risk White goods may contain PCB-laden capacitors; an emerging problem is freon in cars and refrigerators. Textiles and plastics have been specialized to the point where some are virtual house blends, rendering them non-recyclable except to the original manufacturer.

4.3.3 Transportation High transportation costs are a major barrier to cost-effective shipping of recyclable materialsfrom generator to processor to end user. This may be financially prohibitive for generators or recycling companies located in rural, low- volume areas.

Recyclable materials must be densified for cost-effective transport to intermediate and end-user markets. This is especially true of bulky materials. such as plastic containers and film. steeVtin cans and old conugated containers. Low-cost shipping is more easily accomplished in regions with more roads, more recycling industry players and high-volume material generation. Not surprisingly, this is a major barrier in areas characterized by rural location and low-volume recovery programs -- situations where gaps in the recovery and processing system make it economically impossible to transport material to an end user.

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4.4 CREATING MARKETS FOR RECYCLABLE MATERIALS Markets must be sought, developed and sustained to absorb the increased supply of recyclable materials that will be generated by S B l l l directives.

The following discussion provides a perspective of the health and potential of the end-user marketplace, assuming that sufficient collection and processing infrastructure exists to deliver contaminant-free recycled materials to end users.

4.4.1 Increasing End-User Demand Because recyclable materials are an alternaiive to virgin feeahrocks rhey must be priced lower or carry other economic benefits to be attractive to end users. Materials with little end-use demand need to be studied for the development of newproducts using those materials exclusively.

Ingeneral, end-usedemand is relativelygood formostmetals,usedmotoroil. clearand brownglass,old cormgated containers, high-grade paper, textiles, the identified chemicals and plastics. Regional demand exists for these materials, and national forecasts are optimistic (national forecasts were not available for all materials). Exceptions were mixed paper and mixed glass. green glass and low-grade textiles. Mixed glass and green glass have k n e r markets in other parts of the country; however, little demand exists for these materials in this region. Mixed paper

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has such marginal value that any significant price decrease would reduce the number of handlers and processors willing to accept i t End-use demand for non-composted biomass (other than wood chips sold for fuel use) is currently experimental and difficult to assess.

Mixed glass, used tires, green glass, constructiorVdemolition debris, mixed paper and low-grade textiles are all materials for which there is far greater supply than demand. To stimulate demand for materials not considered an alternative tovirgin feedstock, new productsneed to bedeveloped that willuse these problem materialsexclusively. North Carolina has taken an active role in studying altemative uses fortires. The other materials have not received

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a significant mount of attention in the state.

4.4.2 Increasing End-User Product Demand Increased consumer, induswial. corporate, institutional and government demand for products with recycled content is of vital importance to the success of recycling. This is particularly true for products made with problematic materials.

Products made with recycled material are frequently more expensive than those made with virgin feedstocks often because they are produced in smaller quantities as a specialized market item. Promotion and incentive programs are needed to encourage the purchase and acceptance of these products. Programs such as these are beginning to take hold at the state government level. In addition, products created from problematic materials need to be pre-tested and scrutinized for marketability as would any new product. In general, the effort to increase the demand of products with recycled content among NC industrial, institutional and individual consumers has been minimal.

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5.0 IMPACT OF CURRENT INITIATIVES ON NEEDS AND ISSUES

5.1 INTRODUCTION The purpose of this section is to assess how the initiatives of the NC state government departments, local governments and trade and professional associations described in Section 2.0 address the cross-material and organizational needs and issues raised in Section 4.0. The net result of this analysis will filter the needs being addressed by current initiatives from those that are not. The needs not being addressed will create the structure for the agenda for action that follows in Section 6.0.

It is difficult to assess the full impact of current recycling and solid waste market development activities because there has been no mechanism to monitor the scores of projects administered by NC state and local government and support agencies. The analysis of what amounts to hundreds of individual projects is well beyond the scope of this project. For example, 84 projects have been funded by PPP Challenge Grants since 1985; approximately 200 tax certifications were issued in 1989 as part of the Recycling and Resource Recovery Equipment and Facilities Tax Credits program. Other initiatives have been instituted too recently to assess their full impact. One wch example is the State Recycling and Solid Waste Management Plan. This plan includes a waste stream characterization and local government assessment reports that will help planners gauge the current and potential material supply system.

There are other efforts that could be addressing market development issues, but these would need to be reviewed more closely to fully assess their impact These efforts include: specific Councils of Government solid waste plans and feasibility studies; academic research results conducted by UNC schools; the content of Department of Public Instruction solid waste management curricula; Science and Technology Research Center databases; NC Association of County Commissioners meetings, programs and publications; the NC League of Municipalities’ survey of solid waste practices: company-specific International Trade Division export efforts; and lists of recyclable materials sold by the State Surplus Property Division.

The following sections contain an appraisal of the effectiveness of current initiatives in addressing the NC recyclable material market development issues, examples of the initiatives and a suggestion for future efforts.

Three observations emerge from this analysis:

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1) Although the activities described have had and are having positive results, they appear to be

2) Organizations and institutions are undertaking activities independently. There is no cohesion or

3) Public and/or private sector funding mechanisms must be enhanced or established to enable North

first steps in statewide market development.

coordination of initiatives.

Carolina to meet SB 11 1’s directives and absorb the materials generated through recovery goals and landfill bans.

Based on the discussion on the role of statewide institutions in Section 2.0 and the conclusions drawn from the examination of the impact of current initiatives on current needs and issues, there appears to be a lack of a clear and commonly understood definition of the role and responsibilities of the state and local governments in market development.

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5.2 ENSURING A REGIONAL MATERIAL SUPPLY SYSTEM The lack of a recycling material supply system in the Coastal Plain, Mountain and Tidewater regions is recognized as a bamer to current recycling effolts and the ability to absorb the capacities generated by SBll1. Several initiatives are addressing the recovery and processing material supply system needs of the state's less developed areas. These studies and projects are being undertaken by state and local governments, universities, trade associations and the private sector.

Specific regional recovery and processing activities include the following:

~

- Material recovery facilities (MRFs) have been constructed in Catawba and Mecklenburg Counties, and mini-MRFs in Wilmington and Jacksonville. COGs are conducting mini-MRF feasibility studies for several multi-county regions. - The Energy Division (NCDECD) will conduct a recyclinglprocessing facility demonstration project (if funds are available). Eastem Carolina University is conducting a feasibility study for a multi-county solid waste collection system and a flow study of materials from their origins to intermediate market purchasers. - The NC Rural Development Center is providing grants to the Ken-Tarr COG for a proposed regional recycling project that includes the construction of a landfill and recycling center that will serve five counties. - The Westem North Carolina material recovery and market system project is addressing supply aggregation, processing and marketing for a 31-county region. This project involves COGs, Westem Carolina University, the NC Rural Development Center, the Appalachian Regional Commission, the Energy Division and the Office of Waste Reduction. - End-user regional recovery and processing efforts are being made, such as those by Reynolds Aluminum (buy-back centers), Paper Stock Dealers, a subsidiary of Sonoco (processing centers for old newsprint and old corrugated containers) and Safety Kleen (waste oil collection centers).

Although the efforts described above are steps in the right direction, they were not conceived as part of an orchestrated market development strategy. The programs exist in somewhat of a vacuum, making it difficult to share observations and assessments and transfer the technology to other potential applications.

North Carolina, Georgia, South Carolina, Tennessee and Virginia face similar material supply system problems created by rural demographics. As has been demonstrated by other interstate market development groups, there is a significant opportunity for financial and technical cooperation on projects that could yield positive development results for all concemed. For example, a Virginia recycling official suggests that a joint transportation network study of the East Coast be undertaken. This would provide considerable benefits for recycling industries interested in maximizing backhauling and interstate transportation potentials.

One option for overcoming the lack of a material supply system is to encourage public/private sector cooperation. A method of coordination appears to be working in Ontario. Canada. The goal of the Ontario govemment is to spur municipal development of recycling facilities and to encourage municipal demonstration projects. If these demonstration projects succeed, they can be used as a model from which other municipalities can draw for their

the municipal efforts. Since its founding in 1985. Ontario Multi-Material Recycling, Inc. (OMMRI), has overseen numerous projects. Funds are used formunicipally-run curbside programs; industrial waste reduction, reuse and recycling programs: and home and community-based composting projects.

own application. The Ontario govemment created a partnership with its six major industry groups to aid and direct -

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5.3 ENSURING HIGH QUANTITY AND HIGH QUALITY MATERIAL SUPPLY TO END USERS

Receiving a consistent and quality source of feedstock is a core issue for end users using recyclable materials. This section of the report addresses the technical and logistic obstacles found in the recovery, processing and transportation phases of recycling.

5.3.1 Recovery There is a clear incentive to supply additional recyclable material to end users who have expressed interest in using as much as they can. The discussion of issues in the previous section indicates that organized material recovery programs in the state are on the increase; however, the demand for materials such as antifreeze. steel food cans, old cormgated containers (post-consumer), high-grade paper, clear and brown glass, PET, HDPE, PVC, LDPE and PS outweighs the supply.

Recovery initiatives are being undertaken by federal, state and local govemments, and trade associations. These appear to be increasing the supply of these materials, thereby encouraging the need for more activity in this area.

A partial list of specific activities includes the following:

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- The availability of the OWR Recycler Database, which is helpful to post-industrial and post-consumer waste generators looking for handlers. brokers and processors. - The Southeast Waste Exchange (UNC-Charlotte) providingpost-industrial buyers and sellers of recyclable materials with a bimonthly bulletin and database access. Trade associations, such as Carolinas Glass Program, NAPCOR, Steel Can Recycling Institute and the Food Service and Packaging Institute providing educational materials and techncal assistance to local govemments, institutions and businesses interested in establishing and promoting material recovery programs. NC and national trade associations often providing resources on brokers. handlers and processors that accept materials. h4RFs and mini-MRFs (described in Section 5.2) helping aggregate supply of materials, thereby creating volume that is cost effective to transport and process. - NAPCOR working with Wilson Sporting Goods to recover PET tennis ball containers and with Wal-Mart to install recyclable material collection bins (including PET) at stores. The EPA publishing several manuals on the technical aspects of municipal recovery program development and a bibliography that lists books, technical papers and reports on all aspects of recycling. The NC League of Municipalities and NC Association of County Commissioners holding meetings for its members on recyclable material recovery. The Department of Administration taking the lead in organizing recyclable material recovery programs throughout state government offices and the UNC system as mandated in SB 1 11. (In 1990,540 tons of paper were collected.)

There is a clear trend towards the development of recovery programs on a statewide basis. This is being driven by many organizations. It should be noted that many universities and state govemment departments have already taken the initiative in developing office collection programs. In spite of this activity, the materials mentioned at the beginning of the section are not receiving the attention they need. Because there is no overall recovery strategy for the state, it is difficult to monitor, designate and concentrate on the recovery of certain materials. The local government assessment reports that are being generated aspart of the State Recycling and Solid Waste Management Plan will help provide basic information needed to assess the current recovery status. This information could provide the foundation for an analysis of methods to cull the materials for which end users already exist. This type of effort could aid local govemments in their goal of meeting the 25 percent recovery goal outlined in SB 1 11 and amact end users of the identified materials to North Carolina for additional plant sitings.

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To encourage the recovery of certain materials, other states have instituted landfill bans, tax incentives not to landfill and consumer deposits on recyclable materials, such as beverage containers. Japanese collection services create incentives for public participation by distributing free products made with recycled material in exchange for recyclable materials, such as exchanging toilet paper made with old newsprint for newsprint.

5.3.2 Processing Separationofmaterials by type and removalofcontaminants are prime concerns surroundingtheissue of recyclable material quality because both effect how and to what extent the end user can incorporate the recyclable material in the manufacturing process. Materials that present the biggest separation and cleaning challenges are plastics, paper, textiles. glass, antifreeze and conglomerate materials. Currently available procedures are labor intensive and/or costly. Although there are sophisticated alternatives for glass, plastics and antifreeze, the equipment required is often beyond the budgets of local govemments and processors. Local govemments and recycling businesses also face large capital costs on purchase of the more common types of processing equipment, such as balers, compactors and tub grinders.

Based on the assessment of current initiatives, the Office of Waste Reduction (NCDEHNR) and some of the larger trade associations are encouraging the advancement of processing technology on the local level. The OWR Recycler Database is described in Section 5.3.1. The Council for Solid Waste Solutions funds separation technology research for plastics and the Society of Plastics Industry created a voluntary coding system for plastic containers. The Council’s Center for Plastic Recycling Research is developing and licensing PET separation technology and resin reclamation process. The council is developing an automatic sorting line and is working on the optics principle to sort bottles by color, separate PETPVC polymer by particle identification: assessing automotive shredder residue re-use; and initiating an auto parts collection demonstration project in early 1991.

As with the situation for recovery of materials, no processing structure exists for prioritizing the needs for a processing system that provides focus for public, private and university effort. The OMMRI model described in Section 5.2 could provide a method to follow. Technological cooperationbetween states. such as that demonstrated by the Northeast Recycling Coalition’s effort with battery market development, could also serve as a model for further exploration. Denmark’s Pedersen waste sorting plant and Italy’s Sorema plastic sorting and cleaning plant may be technologies deserving of further study for potential transfer to the NC marketplace.

5.3.3 Transportation Recyclable materials often must be densified for cost-effective transport to intermediate and end-user markets. This isespecially~eofbulkymaterials,such as plasticcontainers and plastic film.steel/tincans and old corrugated containers. Activities that relate to transportation are very much related to the regional material supply system issues discussed in Section 4.2. Another factor relating to effective transportation of recyclable goods is the experience the local recycling coordinator has in buying shipping services. This is being addressed through the recycling coordinator training pro ram managed by the$wwith cuniculyn develppme$;,$!o]vfmep[ from 0 the NC Recycling Association-pd &ding assistancep %a-& N&io&I%%k%& bri& Associatidnk,m ~

The recycling coordinator training program is not yet underway, making it impossible to assess its effectiveness. The establishment of this program suggests the potential for continuing education in the field. This could lead to a continual upgrading of the professionalism of this pivotal position as well as a ready conduit in which to pass new information that would help the coordinators improve their programs.

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C7<,>,<,

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5.4 CREATING MARKETS FOR RECYCLABLE MATERIALS Although ample markets exist for most of the potential recyclable materials in North Carolina, methods of boosting end-user demand and end-user product demand are being studied. These efforts address the use of recyclables in place of virginmaterials, the use. of recyclable materials withlimited end use and the stimulation of market demand for products made with recyclables. These are being conducted primarily under the auspices of state govemment departments. Most of the activities in these areas address industrial market demand; they are not addressing consumer demand.

5.4.1 Increasing End-User Demand Developing end-user demand of high quality recyclable materials through replacement of virgin feedstock and the development of new products is the major component of this objective. Mixed glass, used tires, green glass. construction/demolition debris, mixed paper and low grade textiles are among the materials for which there is a limited demand. Several efforts are being undertaken in the state to address the challenge of increasing end-user demand, some of which are listed in the next paragraph. It is unclear whether or not the efforts are successful because many studies are in the demonstration project stage.

Selected initiatives include the following:

NC State University/NCDepartment ofTransportation’sthree-yearstudy on theuse ofrubberized asphalt. - NC Department of Agriculture and NC Agricultural Extension Sewice’s animal bedding from newsprint studies. - NC Agricultural Extension ServiceMCDEHNR Solid Waste Section’s composting studies. - NCDEHNR Business/hdustry Development Division’s efforts to recruit businesses that use recyclable materials in their product manufacture. - NCDECD International Trade Division’s work with companies to export recyclable materials overseas. NCDECD Commerce Finance Center’s inclusion in its programs of low cost financing to manufacturers of products using recyclable materials through Industrial Revenue Bonds (IRBs). - NC Department of Administration State Surplus Division’s selling state government’s surplus recyclables.

NC Association of County Commissioners’ organizing the collection and transport of waste materials that could be used in highway construction. The capping of tires with reclaimed rubber by one of NC’s largest retreading firms. (Permission has been granted to begin testing in this area.)

In addition to these demonstration projects, the OWR Recycler Database and SEWE offer manufacturers of products an information resource enabling them to buy recyclable material. Several trade associations will help link buyers and sellers of material and are working with member companies to develop material acceptance specifications.

The initiatives described above are positive steps toward encouraging greater use of recyclable materials in the manufacturing process. However, as with other efforts, these are not coordinated at the state level. The potential for duplicated effort exists in some areas, while those needing attention may remain neglected.

There are a variety of products that are being used in other states and countries that may provide a market for some of NC’s more problematic materials. Mixed glass, for example, has been used as aggregate in road construction (Le., glasphalt). In Belgium, a firm is marketing an insulating fiberboard made from mixed paper and wheat straw. In Canada, OMMRl founded a gypsum board recycling plant (which uses a significant portion of Southern Ontario’s construction waste to manufacture wallboard) and a wood recycling facility. A relatively new process enables the manufaCtuR of plastic lumber from mixed plastics. A Statesville, NC, firm is one of only six such manufacturers in the United States. Crumb rubber from tires is used to manufacture a variety of rubber mat products. Efforts can be made to introduce these and other technologies and products to the NC marketplace.

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Other approaches to stimulate the use of recyclable materials by manufacturers include the use of tzx incentives for using recyclable material and disincentives for using virgin material. These have been tried by several states. However, there is little consensus on these measures' effectiveness. New Yolk and Pennsylvania newspaper publishers have worked with state govemment to establish voluntary minimum recycled content standards for newsprint. These actions have spurred de-inking capacity in the Northeast United States and Canada.

Coping withoversupplyofmaterialsisasimportantanissueascreatingandmaintainingdemand. TheNetherlands' waste paper industry is successful in managing glut and scarcity through the formation of an industry-wide parmershipcalledExvopa(ExtraPaper Stocks). ThroughExvopa. Dutch waste paperprocessors are able to prevent rapid fluctuations by keeping a percentage of what they collect out of the market and sharing market information.

5.4.2 Increasing End-User Product Demand NC initiatives have had a minor effect on developing demand for products manufactured with recycled content. This may have to do with the fact that there have been few efforts to encourage consumers to purchase products with recycled content. There are limited efforts to encourage purchase on the part of institutions, govemment agencies and industry.

Examples of initiativa? in this area include the following:

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7k/ 4 & Purchase and Contra@%ivisiox@ working with state govemment agencies on developing .Jq guidelines for procurement of materials with recycled content. On April 24. 1990, the division awarded a one-year contract for the purchase of 5,000 tons of office paper with recycled content. (Standards for the purchase of other products with recycled content are being developed with the National Association of Purchasing Officers.) - The NC Department of Transportation (NCDOT) is evaluating the use of recycled products in road construction and waste tires in retaining wall construction. - The Marine Fisheries Division, NCDEHNR, is reusing construction rubble for artificial reef construction.

Several universities are buying products with recycled content. These efforts are laudable, but it is hard to gauge the effectiveness of the cumulative effort. Taken individually, these attempts could be viewed as demonstration projects. The experiences of these entities could be shared with others possessing the same characteristics and needs.

Other states have encouraged end-user product demand through "Buy Recycled campaigns directed at consumen and indusay. Individual and multi-state govemment procurement programs have had a positive impact on the demand for office paper made with recycled content..

5.5 MANAGEMENT OF THE MARKET DEVELOPMENT PROCESS A large number of NC state agencies are playing or could play a significant role in market development (e.g., NCDECD, NCDEHNR, NCDOT. NC Department of Administration, NC Department of Agriculture and the UNC system). There is no one agency in state govemment clearly responsible for guiding recyclable material market development. Various state agencies, NCDEHNR and NCDECD in particular, have been given market development responsibilities by the legislature. However, these responsibilities are not clearly defined. As a result,

are both seeking to define their roles, but have just started a dialogue which aims to allocate specific roles to each department and to coordinate actions. The lack of overall market development direction from the state results in a situation where the few l i e agencies which are undertaking market development initiatives are doing so in a vacuum, and many agencies and personnel who could play a key role are not even aware that opportunities exist.

For example, provided significant new funding is made available, potential exists within the component parts of NCDECD to assist in market development The Small Business Division, the Business/Industry Development Division, theTechnological Development Authority and the IntemationalTrade Division eachhas the ability within its existing mission to assist in some aspect of secondary material market development. Studies ih other states

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there is a lack of coordination among state agencies in market development efforts. NCDEHNR and NCDECD -

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have shownthatknowledge aboutthe economic developmentprocessis the key tothe market development process. While the specifics of any particular secondary material market can be learned rather quickly, the economic development knowledge that resides in these agencies cannot. Provided significantnew funding is made available, the ability of NCDECD to assist in the market development process is substantial.

To access the skills, abilities and programs residing inline agencies, these agencies need specific information on individual recyclable market needs and oppomnities and a sense of priorities regarding both the place of secondary material market development in their overall mission and the key secondary market oppormnities on which to focus.

Finally, the need exists for an ongoing, consensus-building dialogue among the major players with an interest in market development in North Carolina --the state, local governments, trade associations, and individual recycling businesses. This dialogue needs to occur within specific industries and across the market system as a whole. The identification and resolution of key market development issues can happen only if all parties who can contribute to the process are working together. At present this is not occurring.

There are several examples of cooperation and dialogue among major players within and among bther states. In Maryland, the Department of the Environment, the Department of Economic Development and the Department of Employment work together to assist firms with setting up facilities in the state. Missouri created an inter-agency forum to discuss how to develop and expand the state recycling industry through meetings between the Office of Administration, Department of Natural Resources, Environmental Improvement, Energy Resources Authority and the Department of Economic Development.

Washington, Georgia and Tennessee have established market development councils composed of public and private sector representatives. The mission of these councils is to recommend policy and projects that would help stimulate market development. Georgia's council will oversee the implementation of approved initiatives.

Minnesota, Michigan, Illinois, Pennsylvania, New York, Massachusetts and Virginia have hired market development coordinators to orchestrate programs that are implemented through state and local governments, private industries and with other states in the region. Common activities include monitoring recyclable statewide material supply, maintaining recycling industry databases, providing technical assistance through individual telephone, on-site contact and workshops, working on legislation, advising economic and community development departments and facilitating the market development initiatives of individual agencies. The degree to which coordinators and their offices are involved in these activities varies state by state.

According to the National Conference of State Legislature's report "Developing Recycling Markets and Industries,'' almost 50 percent of the states are involved in interstate cooperation to encourage recycling markets. These efforts have taken the form of multi-govemment procurement, and jointly supported research and development. The Northeast Recycling Council and Midwest Recycling Coalition are the largest organizations of this type.

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5.6 ENSURING FUNDING FOR THE DEVELOPMENT OF MATERIAL MARKET SYSTEMS AND MATERIAL MARKETS

As with any industry, suppliers and end users must be healthy for the industry to flourish. The recycling market

opportunities from recycling is dependent on both public and private sector aid to serve as a catalyst in order to transform plans and ideas into action.

Implementation of market support and development initiatives depends on the allocation of adequate funding. This is true for projects and programs administered by state and local government or private industry. The amount of funding and where it comes from will need to be one of the first priorities of the state agency taking the lead role in market development. This funding question must be answered if there is to be a serious effort in tackling the issues. In North Carolina. initiatives are being undertaken currently that have a direct impact on NC material supply systems and material markets.

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system in North Carolina is in a formative stage of development. NC's potential success in developing economic -

NC state government financing initiatives include the following: - The Commerce Finance Center, NCDECD, provides low cost financing which includes loans to manufacturers of products using recyclable resources in order for these industries to renovate the manufacturing building or to buy recycling equipment. The financing of these industries is possible through Industrial Revenue Bonds (RBs). The Energy Division, NCDECD, funds and administers waste-to-energy, solid waste and market development of recyclable materials projects. Current projects include this strategic plan and an animal bedding from old newsprint project. Planned initiatives include administration of a regional processinurecycling facility demonstration project, a waste tire utilization project and a series of workshops on marketing recyclable materials. - The Office of Waste Reduction, NCDEHNR, sponsors Pollution Prevention Program Challenge Grants that are targeted to companies that want to create demonstration projects in solid, hazardous and industrial waste. In 1990, $125,000 was allotted for grants ranging from $5,000 to $15,000. Approved projects receive matching funds on a dollar-for-dollar basis up to $15,000. Since 1985. 84 projects have been funded, totaling more than $960,000 in pollution prevention and waste reduction efforts. !Rs@Hhc

V " funded through collection of the Scrap Tire Assembly. To date, $120,000 has been

awarded to six first round winners. Programs include those for education, a mixed waste paper Study, the Western Carolina regional materials recovery and marketing systeq and the Watauga County animal bedding from newsprint Study. The focus of the grants will shift, based on the fund's advisory committee choice. The budget for the grants is expected to grow, based on the expansion of the Scrap Tire Disposal ;

anagement

proposed regional recycling project The project will entail the construction of a landfill and an adjacent recycling center. These facilities will serve a five-county area. A site for the landfa and center will be identified by March 1991. Consrmction of the recycling center is planned to be completed by the end of the summer. The grants will be used to hire engineering consultants who will provide advice for collection and processing of recyclable materials.

It is difficult to assess the affect of these measures, but there is little doubt as to their positive impact. Based on the issues raised in Section 4.0, there is a need for more programs and initiatives aimed at developing material supply systems and markets.

financing options have been used successfully by other states and local governments: Funding recovery programs that are successful in creating sufficient quantity is a key issue. The following -

The use of waste management surcharges that are charged as part of the tipping fee and paid by the waste hauler, and volume-based fees imposed at the point of collection are increasing in popularity. These measures create strong incentives for households and businesses to reduce waste destined for disposal. An estimated 24 states and dozens of local governments impose some type of waste management surcharge. Charges range from s.25 per ton in Texas to over $19 per ton in Washington, D.C. (1).

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California, Nebraska, Ohio, New Jersey, Florida, Washington and Virginia have enacted a "litter tax." This tax normally embraces manufacturers of items that potentially cause litter, but in some cases have also been levied against all businesses (2).

Fees, taxes, charges and financial assistance programs are but one set of funding options. Public/private sector cooperation i y o t h e r . One such example is being demonstrated through the development of the $cycling

rs&@dprogram. The NC Recycling Association initiated the concept of a recycling coordinators rogram and soft@ @-Js to imp1 nt ep&As$(Eh Soft Drink Associatiorj ItRB the National

Soft Drink Association% each contri%&g $mo e program w his being developed by the NCRA under

end of this year. First priority is to county coordinators, then municipal government and finally to anyone who would l i e access to the training program. Other examples of such cooperation throughout North Carolina and the United Statesarenot widespread, buttherearenotable instances: TheDuPontCorporationand Waste Management, Inc.teamedupwiththestateoflllinoisto recycleplasticwasteproductsintohighwayconstruction andmaintenance materials (3). Intemational Paper is subsidizing a milk carton recycling feasibility study in Williamson County, TN.

In the Canadian OMMRI model described in Section 5.2, the private sector participants contribute one-third of program costs. In these times of economic austerity, creating public/private sector cooperation could present options for viable market development program implementation.

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a * q , n <

the auspices of the Ohce of Waste Reduction. The goal is to educate 140 people between early fall 1991 and the -

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(1) Andress, Carol. "Options for Funding Recycling Programs," Solid Ware &Power, December 1990, pp. 48-53.

(2) bid.

(3) Thumer, Christian and Ashley D a w , "Developing Recycling Markets and Industries," July 1990, pp. 1-38.

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6.0 AGENDA FOR ACTION ~

It is recommended that the General Assembly designate the lead agency andprovide significant new funding to implement market development activihs.

This sectiondiscusses whatwe hope to accomplish regardingthe overall themes outlined inSection5.0. To address

process is premised on five principles: the needs identified in Section 5.0, NCDECD has initiated a strategic planning process. This strategic planning -

Coordination among the major players in the market development system is vital. Cooperation is essential to ensure that lack of understanding and differing agendas will not hamper the effectiveness of the market development process.

State government should play the leadership role in guiding the market development process. It is responsible for overseeing the creation of a statewide recycling system, it has the power and respect to convene all parties, it represents all residents of the state, it has no vested interests in any goal other than the public interest, and it has the largest array of agencies to assist in market development in the state.

To the extent possible, state government should "leverage" the skills, knowledge and resources of the private sector to achieve the public goal of solving market development issues. Engaging the private sector in the market development process will save scarce state resources and personnel. As it works with the private sector, the state should ensure that private interests do not supersede the public interest in the market development process.

For the roles and responsibilities it takes for itself, the state should make strategic use of its resources by promoting coordination and the clear identification of roles and responsibilities among state agencies.

To the extent possible, in the process of market development, the state should seek and exploit opportunities for increased job creation and retention in the state.

To implement these principles, the aim of the strategic plan will be to set in motion a process in which: - An ongoing dialogue among key players in the market development community is initiated and sustained. The purpose of this dialogue is to build consensus around problem identification, priorities for action, and the allocation of roles and responsibilities for implementation. The dialogue will concern both the market development system as a whole and specific materials. The functions of the state government in market development are clearly identified. . The lead agency guiding market development is determined and its roles and relationships with other key deparrments are commonly understood. Dialogue between NCDEHNR and NCDECD will begin to lay the groundwork for this understanding. - Each state government organization, including the university system, which can potentially play an

cooperation o f each agency and of informing it on the type of role it could play will be undertaken. important role in market development will be contacted for discussions. A process for gaining the -

In general, it is intended that the strategic plan will reflect the agreement between agencies and organizations for establishment of roles and responsibilities in market development. The points outlined above address the critical state institutional issues outlined for Section 5.0. Some other critical needs (cross-material, regional, material-specific) are addressed in the following points:

Regional cooperation with adjacent states and other nearby states on selected market development initiatives will be explored where appropriate.

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Means are identifiedfor ensuring an adequate recovery, processing and transportation infrastructure for recyclable materials in all areas of the state, particularly the Coastal Plain, Mountain and Tidewater regions. Oppormnitiesfor developing markers for the state's most troublesome recyclable materials are identified. Opportunities will be identified in-state, elsewhere in the United States and intemationally. Approaches are considered for increasing consumer, corporate and government demand for products with recycled content, particularly those products with the most problematic markets.

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- Mechanisms to ensure funding for market development activities. - The methodology for the preparation of the strategic plan will be as follows:

Role identification and consensus building: 1) initiate a dialogue between NCDECD and NCDEHNR as soon as possible to come to an agreement on how to guide the market development process, 2) initiate discussions with each state department with a potential role in market development to educate them about the issues and opportunities, 3) to the extent possible, develop agreement regarding agency mission statements and commitments for market development activity, and 4) explore the best mechanism for creating an ongoing dialogue between the public and private sector regarding market development --options from the formal (a state council) to the informal will be explored. - Problematic materials: undertake a detailed market analysis of nine selected materials: 1) mixed paper, 2) mixed plastic, 3)steel containers (i.e., tin-plated food containers),4)mixed glasscullet.5) oldnewsprint. 6) white goods, 7) used tires, 8) antifreeze, and 9) polystyrene (PS). The criteria used by NCDECD to select these materials are:

- The material is generally considered to have useful value in the market place but limited marketability in North Carolina.

- The material exists as a significant component of the waste stream in a recoverable form. - The material is considered to be problematic to dispose of and is present in a recoverable form. - The material is likely to be included in or targeted by local government and or private recycling

programs, established as a result of SB 1 11 and related legislation. - The material is not being addressed by other significant market development research or

initiatives underway in North Carolina. Specific market development initiatives: on the completion of the prior steps, 1) set in motion processes for determining the means to (a) develop an adequate recovery, processing and transportation infrastructure, (b) develop markets for the state's recyclable materials, particularly the most troublesome ones, (c) increase consumer, corporate and government demand for products with recycled content; 2) to the extent possible, within budgetary limits, develop agreements regarding specific initiatives for creating and improving the supply-side infrastructure and increasing demand from users of recyclable materials and purchasers of recycled products.

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7.0 SUMMARY

This report begins with a definition of terms and concepts that are necessary to understanding the recyclable material marketplace. It also describes the roles and relationships between the market players, and the organizations and institutions that affect recyclable market development. After an assessment of the markets and market systems for selected recyclable material categories. the report analyzes how current initiatives are responding to market support and market development needs and issues. The report concludes with an agenda for action that outlines issues that will undergo further investigation in the Strategic Plan and a list of nine significant materials for a detailed market development analysis in the Technical and Marker Development Analysisfor Selected Recyclable Materials in North Carolina.

Issues of primary concem to market development in the state are:

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Ensuring a Regional Materials Supply System - Ensuring High Quantity and Quality Material Supply to End Users

Creating Markets forRecyclable Materials and Products withRecyclable Content

Ensuring Effective Management of the Market Development Process - Ensuring Funding for the Development of Material Market Systems and Material Markets

North Carolina’s recovery system is only just developing. There is a need to develop the regional material infrastructure throughout the whole state with an emphasis on the Coastal Plain, Mountain and Tidewater regions. A state recovery strategy is needed to monitor, designate and concentrate on the recovery of certain materials. An opportunity exists with certain recyclable materials to build supply. Some of these are old cormgated cardboard, high-grade paper, clear and brown glass, PET, HDPE and PVC. Certain technical obstacles also create bamers to maximizing supply, for example, the costs associated with separation and processing.

There is an extensive network of industrial and commercial recyclers serving North Carolina’s businesses and communities in the brokering. handling, processing, and end use of recyclable materials in North Carolina. The majority of these are either located in North Carolina or have branch operations located in North Carolina. However, there are a significant number of recycling businesses, which are serving North Carolina, which are located outside North Carolina in either adjacent states or in other states in other parts of the United States.

It is also clearthat many ofthe obstacles formarketdevelopment identified in this report are shared by neighboring states. Therefore, regional cooperation with adjacent states and other states in the region on selected market development initiatives should be explored.

An ongoing dialogue among key players in the market development community should be initiated and sustained. The purpose of this dialogue is to build consensus around problem identification. priorities for action, and the allocation of roles and responsibilities for implementation. The dialogue will bothconcem themarket development system as a whole and specific materials.

and local govemment, recycling businesses, and other organizations that influence and support the recyclable materials markets can develop a productive framework for program implementation.

A major goal of the strategic plan as outlined in the Agenda for Action is to create the environment in which state -

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APPENDIX A:

A Discussion of the Terms: Markets, Marketing, Marketable, Marketability Prepared by Steven Levetan, Resource Services, Atlanta, Georgia

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Markets for recovered materials (recyclables which have been diverted or removed from the solid waste stream),

with solid waste (and materials which would otherwise become solid waste), definitions are critical. What is "the market"? When is a material "marketed"? What is "market development". and how can we do "it"?

is the subject of much discussion, not only in North Carolina, but around the country. But like most issues dealing -

Several difficulties emerge in attempting to define "the market", when discussing recovered materials. First, it must be recognized that markets for recovered materials operate in a manner which is the opposite of most familiar "market models". Second, we are dealing with multiple levels of markets - micro and macro - and "the market" therefore tends to depend on our location and perception. Each of these issues must be addressed to understand the concept of markets for recovered materials.

Typically, products are offered for sale by relatively feworoducers, to "yxmsusers. Products flow from producers, through wholesalers, to retailers and ultimately to the users of those products. With recovered materials however, this is reversed. There are - often individuals generating relatively small quantities of materials - which then flow "backwards" - through retailers, wholesalers (dealersbrokers) to a relatively ultimateusers of those materials. So in the product marketing model, we - individuals - are the ultimate "market"; in the case of the recovered materials marketing model, we reverse roles and become the "marketers" (producer), rather than "the market".

Another issue is that of perception. In this case we can view the "market" actually as consisting of two separate and distinct areas or functions - micro and macro. On the "micro" level, the market may best be viewed at the point at which title to the materials changes (or the contractual obligation for such change in title). At this point, from the seller or generator's perspective, the material has been "marketed". Their responsibility for the material ceases.

For most local govemments, their immediate concem is the micro level. What is this micro market, and when does it begin? From the perspective of the individual generator of recovered materials, this transfer of title - or change in ownership - occurs when the individual places that material in a drop-off location, delivers the material to (and it is accepted by) a buy-back location, or in the case of a curb-side collection program, when the material is placed'at the curb (on the public right-of-way). At that point, from the generator's perspective, the material has been "marketed". It is no longer his or hew responsibility (or problem).

Thus from theperspectiveofthepersonresponsibleforalocalgovemmentprogram,thepoint at which thematerial is marketed is often a function of that micro market. and of governing contractual terms. The "market" then. may vary based on the types of programs, and the perspective of those involved.

First, let's look at the drop-off scenario. Once the material is "dropped off", the "producer" views the materials as being "marketed". However, in actuality, while title has changed (from the producers vantage the material

drop-off is privately operated, with no public sector involvement (such as a boy scout or church paper drive), there is no public sector responsibility for marketing, and this material can be viewed (again by the public sector) as being marketed. In this case, the private operator must further market the material. On the other hand, if publicly operated, from the public sector perspective these same materials have only been collected, and must now be marketed (someone else must take responsibility and title). The Same is the case for a processing facility. Such a facility maybe operated as a public/private partnership which. by contract. accepts and takes title to materials when delivered (after passage of an initial inspection). In this Scenario, a fee per ton may be paid to the processor for his services, with a credit based on the cunent market value ofthe materials delivered. The "market" may thus be

been marketed), responsibility for further marketing has been transferred to the operator of the facility. If the -

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viewed as the "front door" of the facility. If however, the processor acts as an agent of the local govemment, processing material for a fee, and then marketing the material (again a fee may be involved) as an agent of the govemment, without taking ownership, (or if the facility is publicly owned and operated) it is the "back door", rather than the "front door", where the materials become "marketed". In any case, risk is assumed to varying extents by various parties, and the marketplace assigns a value to that risk From the local vantage point, the "market" may be purely local, and subject only to local factors such as facility capacity and contractual arrangements. It must be recognized however, that in any of these scenarios, while the materials may no longer be the responsibility of the local govemment - title has changed hands - the material has not yet completed the

been achieved.

For "marketed" to equal "avoidance of disposal", then the "macro" market must be considered. From the macro perspective, the market is not the curb, drop-off location, or processing facility - the initial change in title or ownership - it is the actual facility where agivenmaterial is utilized as a raw material in the production of afdshed product, or the reuse of that material for abeneficial purpose - the proverbial "closing of the loop". [It is important to note that this finished product may not be a "consumer product", but rather a product which is used then as a raw material in the production of another product, such as the production of newsprint from old newspapers, which then becomes a raw material in the production, by a publisher, of a newspaper.] Three important elements must be in place for this "macro" market to exist. First, there must be an adequate supply of raw materials. Second, the physical capacity, or capitat equipment, must be in place to convert those raw materials into a fdshed product. And finally, there must exist the ability to profitably sell that finished product. Al three elements must exist, and be in balance. Without this "macro" market, the "micro" market may not provide for achieving the goal of reducing the solid waste requiring disposal.

On a macro level - and for the overall success of increased recycling as a method of reducing the amount of solid waste requiring disposal - we must seek the long term goal of increasing the use of recovered materials as a raw material in the production of new products. Recovered materials must therefore be used in place of competing (virgin) materials, to the greatest extent technologically feasible, for the demand - or market - for these materials to increase. Remembering the elements required for the existence of a market - raw material supply, capacity, demand for the finished product at a profitable price - overall market development must address each of these factors. While some policies may be enacted at the state or local level to address these factors, some are clearly not within the control of a state or local govemment.

Now that this thoroughly confusing concept of the market has been completely understood, we can see that the concept of'marketability" is certainly as confusing. In its basic sense, the marketability of one's own material relates to the attractiveness of that material in the marketplace. Simply put. this is achieved when one's material offers a larger contribution to the buyer's bottom line than someone else's competing material. This is a valid approach in a market which is characterized in the short run, by an inelastic supply and a limited or constrained demand. Attractiveness in the market may be affected by price, quality, or consistency of the material supply. It should be remembered, that in this situation, one seller benefits from another seller's loss. Government is constrained bythefactthatitsproduct-recoveredmaterialsgenerated as aresultofprograms,policies,ormandates aimed at reducing solid waste disposal, rather than making a profit - is not sensitive to variations in value (or at least, highly insensitive). The supply of this material is, therefore, highly inelastic. When the demand for motor vehicles decreases, General Motors can reduce production. Government however, does not have this luxury when collecting recovered materials from the public. hoduction cannot be cut by scheduling changes, or the closure of aplantortwo. ButGM,andlocalgovemment,canattempttogainmarketshare -attheexpenseoftheircompetitors. While this approach by govemment appears to result in an increase in recycling on the local level, on a macro level it is merely displacement.

~

recycling process. But the goal of keeping that material from disposal in the local landfill may. or may not, have -

-

Page A-2 NC Aecyding Market Development Sbategic Phn Project UNCKRE RecydaMe Malerids Market Assessment Report 4/1/91

Conclusions 1) Amaterialis- " whenitisnolongertheresponsibilityorproblem oftheseller, i.e. whentitlechanges.

2) Long term success of local, or micro, markets is dependent upon the larger - or macru - market.

3) A material is "marketable " when it is capable of being accepted by a market. While it is desirable to receive the greatest value possible for a material, marketability is not dependent upon value.

4) Given the insensitivity to price in the generation of recovered materials resulting from governmental programs, price or value to the seller is not a criterion which can be used to determine if a material has been marketed. Costs of collection, processing and transportation versus the value of a recovered material delivered to a consumer of that material may result in a "sales" price which is negative.

5 ) With supplies increasing faster than demand, successful marketing of one's material, i.e. enhanced mxk&Wi&, may result in the displacement of a neighbor's material.

6) The concept of "use or reuse as a raw material orproduct" should be interpreted as broadly as possible when defAng or ' ' , remembering that the goal is ultimately to reduce the amount of material ultimately requiring disposal. Where daily cover is required in landfills, materials which would otherwise be placed "under the cover" may be put to beneficial use as a raw material replacing some of the "virgin" dirt used as a cover material, reducing the overall volume of landfill space consumed.

7) Macro markets should not be viewed as only existing (or desirable) when located within the state. Such markets are regional, national, and intemational in scope.

The "market" therefore, is the opportunity for that change in title to occur.

-

UNCITRE NC Recyding Market Development Sbatqic Plan Project Page A-3 4/1/91 Recydable Materials Market Assessment Report

I

APPENDIX B: END USERS SERVING NORTH CAROLINA

Ahemalive Recyding Technologies (Bcene. NC) [HPE] American Nat'l. Can, Foster-Forbes Glass mlson, NC) [HPE]

Ball-lncon Glass Padcaging Cop. (Henderson, NC) [E] Brin-Mont Cop. (Greensboro, NC) [E]

Wellman, Inc. (Johnsonville, SC) [E] * Weyertaeuser Paper Co. (Charlotte, NC) [BPE]

* Wysong Castings Division (Greensboro, NC) [PE] * Amex Padtaging, Ltd. (Mooresville, NC) [BPE] Willard Industrks, Inc. (Charlotte, NC) [BHPE]

* Cabarrus Creamery Co., Inc. (Concord, NC) [BHPE] - Carolina Paper Board Com. ICMone. NCI I P f l . . ,. . Cascade Fibers Co. (Sanford, NC) [PE] Cascades Industries, Inc. (Rocldngham, NC) [E] blotex Cop. (Gddsboro, NC) [E] Charbne pipe and Foundry Co. (Charlone, NC) [E] Dewey Brothers, Inc. (GoMsboco, NC) [E] Foundry Service Co. (EL-, NC) [E] G. R. Ennis 8 Son Foundry, Inc. (Wilminglon, NC) [E] Gilmore Asssodatas, Inc. (High Point, NC) [BHPE] Greenway Industries (Greensboro. NC) [HPR Halilax Paper Board Co., Inc. (Roanoke Rapids, NC) 19 Hallman Foundry, Inc. (Sanford, NC) [E] Halstaad Metal Produm (Pine Hall, NC) [E] Hammer's Plastic Recycling Cop. (Iowa Falls, IA) [E] Hilemn Labs (Greensboro, NC) pHPE] INMETCO (Ellwood, PA) pHPEj J. G. Thompson Enterprises (Spindale, NC) pHPE] Jackson Paper Mlg. Co. (Sylva, NC) [E] Jerry Russell Recycling (Star, NC) [HE] King's Kountry Klassics (Hendersonville, NC) [BHPE] Layman Plastb (CMone, NC) [HPE] NIFE. Inc. (Greenville. NC) [El OHNCO, Inc. (Eridgevlle, PA) [HPQ Oldover Cop. (Ashhnd, VA) [HPEJ Owens-Brodovay Ghss Containers, Inc. (Winston-Salem, NC) [E] Pallet Services, Inc. (Lynchburg, VA) FEI Sadmar Produds, Inc. (Stalesville, NC) [u Salchme (Statesville, NC) pHPQ Sanders Lead Co., Inc. (Troy, AL) [El Sonom Produds Company (Harlsville, SC) [BHPE] Southeast Recycling Cop. (Marietta, GA) [BHPE] Stale Wide Service and Supply (Spartanburg, SC) PEI Stoval Foundry, Inc. (Gastonia, NC) [PE] Sun Bell Textiles, Inc. (Kings Mountain, NC) [PE] Synmt Fhrs, Inc. (CMd ie , NC) [BHPE] Textile Waste Company, Inc. (Pneville, NC) [EPE] TiCMar, Inc. (Sheby, NC) PE] Unipoint Industries, Inc. (High Point, NC) [EHPE] Universal Dispersions, Inc. (Charlone, NC) [PE] WUW, IncJSoil Rechiing, Inc. (Sanlord, NC) [PE]

SOURCE: OWR Recycler Directory Database

[E = End User; P - Procassor; H - Handler; B =Broker]

UNCITRE NC Recyding Market Development Strategic Pian Project Page 6-1 4/1/91 Recydable MateMs Market Assessment Report

END USERS SERVING NORTH CAROLINA (TIRE RETREADERS)

AAA Tire Service (Havelmk NC) [Q . Ace Tire Sales, Inc. (Hicbry, NC) [EJ Aken-Bhck Tire Service (Hickory, NC) [Q - Atlantic Oil 8 Reapping (Salisbury, NC) [EJ Avery County Recapping Co. (Newhnd, NC) [Ej . Beam's Inc. (Chenyville, NC) [EJ

* sig D Retread, Inc. (Kinston, NC) [Q Bill Martin, Inc. (Statesville, NC) [Q Bill Walker Tire Center (Asheville, NC) [Q

* Bhck'sTireServica(Whiteville, NC) [Q - Bhckwell Tire Ca., Inc. (Gaston, NC) [EJ Blair 8 Horton Tire CO. (Charlotte, NC) [Q

* Blue Ridge Tire Service (Hickory, NC) [Q - Brad Ragan, Inc. (Saliibuy, NC) [Q Bray's Recapping Service. Inc. (Mt. Airy, NC) [Q Brother's Tre Sales (Kannapok, NC) [Q Browning Tire CO. (Canton, NC) [E) Budd 8 Creech Bandag, Inc. ( E h Cay, NC) [EJ Budd Tire Cop. (Sanford, NC) (Q

* Bull Tire 8 Alignment, Inc. (Morganton, NC) [EJ - Bulla Warren Tire Co., Inc. (Graham, NC) [Q * Burrough's THe Service (Waeville, NC) [E)

C 8 J Tire Service (Chadboum, NC) [EJ C. A. Bank 8 Son (Comlort, NC) [Q Carolina Freight Carkrs (Cherryvilla, NC) [Q

* Car0li~Tire8 Retreading (Asheville, NC) [Q CarolinaTire Co. (Rocky Mount, NC) [EJ Ceca Budd Tire Co. (Siler Cdy, NC) [Q - Charlie Keams Ttuck Retreading (Charlotte, NC) [Q - C i i Tiwe Recappers, Inc. [Henderson. NC) [EJ - City Tire Service (Fainnont, NC) 14 Clark 8 Snipes Tire CO. (Fuquay Vatina, NC) (EJ

* Clark Tire 8 Auto Service. lnc. (Hidcory, NC) [El - Claybrook Recapping (Madkon, NC) [EJ - Coastal Tire Co., Inc. (New Bem, NC) [Q Coats Tire Service 8 Recapping, Inc. ( W s , NC) [Q - C r e y w d Tire Cop. (Edenton, NC) [EJ Cross Roads Tire Store, Inc. (Medland, NC) [Q - Crown Tire Service (Charbne, NC) [EJ

* D 8 L Tue Service (N. Wilkesboro, NC) [EJ DeWffl Robins Tires Co. (Ellerbe, NC) [EJ . D o h Tire Service (West JeHerson, NC) [EJ Edwards Tire Co. (Mount Gilead, NC) [EJ - Edwards Wawen (Kemersville, NC) [Q Ensley Firestone (Canton, NC) [EJ Fainnont Tire8 Recapping Co. (Fainnont, NC) [EJ . Faw Recapping Service (West JelfeRon, NC) [E)

~

Forsythe Tire Center, Inc. (Greensboro, NC) [El * Foster Tire Co. (Lexington, NC) [Q

Fountain Tire Service, Inc. (Wilminglon, NC) [EJ Fox's Tire 8 Retreading (Marshall, NC) [EJ Free Service Tire Co., Inc. (Moravian Falls, NC) [a Gerrard l-re Co., Inc. (Charlotte, NC) [q GoldsboroTire Service. Inc. (Goldsboro, NC) [EJ G d y e a r Tire 8 Rubber Co. (Charlotte, NC) [El . Hall's Tire Service (Syiva, NC) [Q - Haney's Tire 8 Recapping (Laurinburg, NC) [Q Hughes Brothers, Inc. (Wilminglon, NC) (EJ - Hunt General Tires (Raleigh, NC) [Q . Independence Tires, Inc. (Elizabeth Ci, NC) [EJ - IngoIdTue ( D u h , NC) [Q

* J J Tire Service (Marshall, NC) [Q - Jarman Tire 8 Auto (Kindon, NC) [EJ . Kmg Tire Service 01 Roanoke Rapids (Roanoke Repids. NC) [EJ L 8 N Tire Servica, Inc. (Charlone, NC) [Q - M 8 R Retreading ( N o m d . NC) [EJ

* Mark Brothers, Inc. (Rodcy Mount, NC) [Q - McPhearson Brothers Auto Supply Co. (Eliuabeth City, NC) [EJ Mehenin Th Service (Murlreesbom, NC) [E) Nauck 8 Sons lire Service (Pisgah Forest, NC) [Q - NuTread Tire Co., Inc. (Durham, NC) [EJ

* Nu Treads, Inc. (Garland, NC) [Q - We's Tire 8 Recapping, Inc. (Shelby, NC) [Q Overhnd Trudc Tire Center (Franklin, NC) [EJ Overnite Transpcrt Co. (Charlone, NC) [EJ . Parker's Recapping Service (Hannony, NC) [Q Panish l i r e Co. (Yadkinville, NC) [EJ Paul's Recapping Servica (Lauriiburg. NC) [EJ Perry Brothers Tire Service (Dunn, NC) [EJ P M s Retreading (HuntenviUe, NC) [EJ - Phl's Tire Service (Bumsville, NC) [EJ Piedmont Tire, Inc. (Concord, NC) [EJ . Piedmont Trudt Tires, Inc. (Greensboro. NC) [EJ - Princeton Tire Service (Priicaton, NC) [Q Qualii Retreads (Rockingham, NC) [EJ Qualii Tire Service (Claremont, NC) [EJ

. Retreading Equipment Co. (Charlone, NC) [Q Roekingham Bandag (Stokesville, NC) (Q

* Rooseven Tire Service, Inc. (Gaslonia, NC) [Q RuWs Recapping, Inc. (Statesville, NC) [EJ - Sandlii Tire Service (buhville, NC) [u Shoat's Recapping Service (Lexington, NC) [EJ Small BrothersTire Co., Inc. (Monroe, NC) [EJ

-

Retread Manuladuring 8 Tires Sales Co. (Locust, NC) [EJ -

[E-End User; P=Prwessor; H - Handler; B-Broker]

Page 8-2 NC Recyding Market Development Sbategic Plan Project U N C r R E Recydable Materials Market Assessment Report 4/1/91

Smith Tire Service, Inc. (Jonesvilie, NC) [El Smoky Mountain Tire Co. ( B p n City, NC) [El S n b r General Tires (Greensboro, NC) [El Soulhern Tire Service (Morganton, NC) [El - Steed's Tire Service, inc. (Warsaw, NC) [EJ - Sutton's Service Center, inc. (Greenvilla, NC) [El - T. R. Ashworth, Inc. (Fuquay Vatina, NC) [Q Tar Heel Tire (Warrington, NC) [El Tire Remanufacturing, Inc. (Cbremont, NC) [El Tire Sales &Service (FayeHeville, NC) [q Tire Supply Co. (Raleigh, NC) [El - Tires, Inc. (Clmton, NC) [Ej - Tdds' Tire S e d , Inc. (FayeHeville, NC) [El - Tommy's Truck Tire Sewice (Polkton, NC) [El Towel Chy Retreading Co. (Kannapolis, NC) [EJ - TNdc Tire Recappers of Fletcher (htcher, NC) [El Tumerlire Servics, Inc. (Raleigh, NC) [El . Underwood 8 Weld Ca., Inc. (Newland. NC) [El

* V- R W n e ( 8 0 0 ~ NC) 19 - Vienna Recapping Shop, IN. (Plantown, NC) [El WNC Tire Co., Ud. (Weat Ashevilla. NC) [a Wagner lire Swim (High Point, NC) [a Watson 8 Sons Truck Retreading (Fanldinton, NC) [Q WestemCarolinaTires, lnc. (Lenoir, NC) [Q While Tire Service of Goldsboro, Inc. (Gold&" NC) [El - While Tire Sewice of Wilson, Inc. (Wilson, NC) [Q - Whohale Tire Retreading Co. (Ahoskie, NC) [El

SO" NC Tire Dealers and Retreaders Association

UNCITRE NC Recyding Market Development Sbategic Plan Project Page 8-3 411191 RecydaMe Malariats Market Assessment Report

END USERS SERVING NORTH CAROLINA: PRODUCTS MANUFACTURED AND FEEDSTOCKS USED

COMPANY

BIOMASS Kmg’s Kountry Klassia WUW, lnclsoil Redaiing, Inc.

CONSTRUCTION ARemal’ie Recyding Techndogies Alemalive Recyding Tehnologies Alemalive Recyding Technologies

GLASS Ametican Nat‘l Can, Faster-Forbes Gbss Ed-lncon Glass Pacbging Cop. Owens-Brockway Glass Containers, IN. OHens-Brockway Glass Containen, Inc.

METALS Charbne Ppe & Foundry Co. Dewey Brothers. Inc. Foundry Service Co. G.R. Ennis & San Fwndry. Inc. Halstead Metal Produds Hilemn Labs INMETCO NIFE. Inc. Willard Industries, Inc.

MIXED MATERIALS J. G. Thompson Enterprises J. 0. Thompson Enterpmes Sonom Pmduds Company Sonm Produds Company

Wooden pallets (10096) Ekk(lS%)

Houses (50%) Cabinets (65%) Finished carpentry (65%)

Glass containers (18%) Glass containers (36%) single returnable beverage botlles (38%) EW bonks (33%)

Cast imn so1 pipe (100%) Grey irm metdl castings (manhole W h g s ) (100%) Iron castings (4W) Cast iron/municipal W i n g lor highway wok (100%) Cappertubing (70%) Chemicals for minor Mnulacturimg (45%) Nickel chrome albys (94%) Eatleries--nickeCcadmium (25%) Fabricated shielding pmduds (Nuclear X-rays) (80%)

Dvpont plywood pulp (100%) Wprs/grease rags (100%) h m s (25%) Composite caru (30%)

FEEDSTOCKS

Wooden palets (S) virgin soil (V), Contaminated sol (S)

wood (SI, Windom (V), Doors. futures (A), Lumbar (S) WoodLumber (S) Woodnumber (S)

Ash (V), Sand (V), Cullel (E) Sand (V), Ash (V), Old glass (S), Limestone (V) Sand 0, Soda ash (V), Limestone (V), Recyded container glass (S) Sand 0, Soda ash (V), Limestone (V), Recyded container glass (S)

Cast iron scrap (S) Sarp iron (S) Saap metal (S) Saap imn - remount old highway castings (S) Capper cathode 0. Copper scrap (S) Shrer/sihrec sludge waste (E), Ntric acid (V) N d e l (S). Chrome (S), W o n fines (S). Dolemetric bricks (B) Cadmium (E), Nickel (E) Tim (V), Lead (S), SilVerlbismuth (A)

Oupant pdyester (SI. Wood pulp (SI Clolh napkins (S), Fkwce (S), Polpmd pub (S), T-shirls (A) Paper(E),Folforlimers(V),Metal(E),Phstin(E) Papaboard (E), Ends (metal, phslic) (E), Lmers or loik (E), Labels (V)

[A = Not Available; B = Both Recyclable 8 Virgin Materials: S = Recyclable Materials; V = Virgin Materials]

1 I I I

PAPER Abilbi Price Cascade Industries. llc.

Cascade Industries, Inc.

Cascade Industries, Inc.

Celolex Cocp. Halilax Paper Board Co., Inc. H a l i i Paper Board Co., lnc, Jackson Paper Mlg. Co. S o w Produds Company Southeasl Recyding Cap. Weyehauser Paper Co.

PETROLEUM Oldover Corporatwn

PLASTIC Amex Packaging. Lld. Amex Packaging, Lld. Erin-Mont Cop. Gilmweksociites, Inc. Gilmwe Asmiales, ilc. G i i m e Assaciates, lnc. Hammer‘s Plastic Recycling Cow. Hammer‘s PlasticRecycing Cap. Hammer’s Plastic Recycing Cap. Hammer‘s Plastic Recycling Cop. Layman Phstics OHNCO, lnc. Plastic Tubing RuWermaid Rubbemaid Rubbemaid Rubbermaid Rubbemid Rubbemaid Rubbemaid Rubbemaid Rubbemid Rubbemaid Rubbemaid

Newspint(l9%) Tissue(1000/.)

Tissue paper (100%)

Tissue towel (100%)

Rwling felt (75%) Paperboard (IC%) Convetted paper produds (100%) Gmqated paperboard (100%) T W c o r e s (100%) Newsprint (100%) Corrugated containers (33%)

ONP (S), Magazines (SI, Waodpub M. Crall Pulp Whine Wer (grade of secondary h r ) (SI, CPO (computer pintcut) (S), Ledger (urprintedlpre-mnsumr) (S) White ledger (grade 01 secondary meC) (S). GPO (computer p ~ m ) (S), Ledger(umprinted@aMsumer) (S) White ledger (grade of recandary fiber) (S), CPO (computer prmtour) (S), Ledger(unpfinted@ecumr) (S) Miedpaper(S) Mited paper (S), Cormgated conlahers (S), Newspaper (S) Mixed paper (S). Cormgated contamers (S), Newspapec (S) old mrrugakd boxes (S) Paperboard (S), Adhesive (Soma Adhesive Glue) (V)

nempapers (SI papec (B)

Recldmed blended fuel (100%) Petmleum waste (S), O k (S), Gasoline (S). Paints (s)

Stockcylinders (22%) Flower vases (100%) Foam msuMion (25%) R ~ e d p h s t i i ( l o O 9 b ) Resh(l00%) Recyded polpropelene (100%) Parkbenches. picnic tables. speed hmps (100%) Lsndscapeties(10096) carstapb (1M)%) Plastic lumber (100%) phsk extdrusions (10%) Plastics(O%) Cormgated tubing (50%) Reluse mntainers (15%) Plastic Containen (Ewes) (15%) Mop Buckets (25%) SAm Jim Base (15%) PlasticConlainer Lids (Brules) (15%) Fast Food Trays (50%) DeskTopAccessories(s0%) Mop Wringers (50%) Hooded Glutton Top (25%) son wastebaskets (25%) Plastic Containers (Marshal) (25%)

vnvl (PVC) Vinyl (PVC) (E) X-ray film (S) Exlremely clean plasks (6) suq, plastic (S) Polypropelene saq, (S) HDPE (S), Polystyrene (S) HDPE (S), Polystyrene (S) HDPE (S), Pdyslyrene (S) HDPE (S), Pdystyrene (S) Plastic resins (8). Plastic scrm to reorind (SI Eurothane (S): Polyalloys (S),’kiode (S): 6VCs (S) HDPE (6) Potyelhelene (E) Recyded Mlkjugs (HOPE) (S), Phstic Resin-LDPE (V) Plastic Resin-HDPE (V). Recycled Milkjugs (HDPE) (S) Recyded M w g s (HDPE) (S). Plastic Resin-LDPE (V) Plastic Resin-HDPE (V). Recycled Milkjtgs (HDPE) (S) P & k Resin-PP (V), Recycled Polystyrene Foam (PS) (S) Plash Resin-PP M. Recyded Polystyrene Foam IPS) (S) Plastic Resin-PP (V), Recyded Baffery Reclaim (PP) (S) Mued PoslConsumer-Industrid Redah (S), Plaslictlesin-HOPE (V) ReCyck-3 Basscaps (HOPE) (S), Plastic Resin--LDPE (V) Recyded MXWgs (HDPE) (S). Plastic Resin-HDPE (V)

[A = Not Available; B = Both Recyclable & Virgin Materials; S = Recyclable Materials; V = Virgin Materials]

1 I

Rubbenaa Rubbema Scimxn Produds Company Universal Dispersions, IIIC. Universal Dispersions, Inc. Universal Dispersions, Inc. Wellman. Inc. Wellman, Inc. Wellman. lnc. zam zam

RUBBER c&J Tire SeNW Charle Kearns TN& Retreading Retread Manufaduring Retread Manuladuring Sneider Re IIIC. Unipoird Industries, Inc.

TEXTILES Behont

cascade Fbm co. Jerry Russel R q d i n g Kmg’s Kountry Klaaics MoppoProduds Sun Bel Textiles, Inc. Sun Belt Textles. Inc. SyncOr Fbers, Inc. Textile Waste Company, Inc. Til-Mar, Inc.

Phstic Containers (Ranger) (25%) Plastic Containers (AshlTrash) (25%) Pkslicgrocerybags(10%) Polyethylene “pounds (%) Potypropylene compounds (50%) Polystyrene compounds (50%) Gedextile Wric (100%) Polyesterstaplelaer(l00%) Engineering resins (I@%) Waste Reluse containers (25%) Nursecy containers (l@%)

Retread passenger arid twk tires (85%) Retreaded IN& tires (90%) Retreader passenger tires (80%) Retreaded lighlhtownmerdadhs (80%) Retreaded trudc tires (90%) Polyvinyl sponges (0%)

WpwdolhS(lCE4)

Table limens ( l W ) Firestarters (100%) Handwoven ngs (100%) Mop fillen lor the rooling hade (tCE4) Rewind yarn (95%) Rags (100%) Baks 01 f i waste (100%) Rags (100%) Ragslwping doths (60%)

Recyded Mlkjugs (HDPE) (S), Plastic Resin-HDPE (V) Recyded Milkjugs (HDPQ (S). phslic Resin-HDPE (V) HDPE and HMW resin (V), Reclaim mixed plastic (s) Polyelhylene (B) PdYpropY l~ (E) Polystyrene (E) RecydedWiWer(S) Recyded lker (S) Enaineerina resins (SI H ~ P E (in t i e ~m 01 hatic pellets or resin) (E) HDPE (S)

Rubber M, kqded dust (S), Old tires (S) Rubber(V),Oldtk(S) Old tires (S), Rubber (V) Old !ires (S), R u b (V) Rubber(V).OMtires(S) SNT foam (s)

Knit malelials (D), Conm (S), Conon pdyethelene (S), Woven malerii (S) Polyester (S). Conon (V) Textiles (S) Textile bypmduas (S) Textile waste (S) Yamsaaps(S).Snnewrginyam(V) Clolh (S) S a g I” mills (S), M l m g (S), Rwr hlzz (S) Pdymllon knits (S), PolycoHen wovens (S), Denims (S) Rags 1s)

SOURCE: OWR Recycler Directory Database and UNC-ITRE End User Survey

[A I Not Available; B = Both Recyclable 8 Virgin Materials; S = Recyclable Materials; V = Virgin Materials]

1 I I I

APPENDIXC: RECYCLABLE MATERIAL TONNAGE ESTIMATES

Introduction Solid waste generation rates, composition, and recovery estimates for NC are displayed in Tables 1 and 2 at the end of this section. Although these estimates were derived using the best information and methods currently available, the methodological limitations should be factored into any use of this information. In the absence of statistically significant data, waste composition predictions remain more art than science.

Methodology Waste generation rates were compiled using national averages reported in the latest update of Franklin Associates' waste characterization study prepared for the U. S. Environmental Protection Agency. Franklin per capita generation estimates for each material type were then applied to North Carolina population data. Franklin Associates utilized the "materids flow methodology" to produce their estimates. With this technique, researchers examine historical product consumption data focusing on products which typically enter the solid waste stream.

Population figures for North Carolina were taken from estimates and projections provided by the State of North Carolina, Office of State Budget and Management, State Data Center. Those estimates are as follows:

yepr PoDulatiOn 1990 6.6 13.39 1

1995 6,949,786

2000 7.260.748

Use of national waste composition and generation data was chosen after a review of waste characterization studies in 35 North Carolina counties revealed a prevalence of deficient methodologies. Only five (5 ) of the waste characterization studies were based on a statistically significant quantity of weighed samples. Taken alone, these five (5) studies did not provide an adequate sample size to generalize results to other North Carolina counties.

The Franklin Associates study was designed to include residential, commercial and institutional solid wastes, but does not distinguish between these sectors, and excludes industrial waste, demolition and construction wastes, sludges, automobile bodies and incinerator residues. These represent a significant portion of the total waste stream. A reliable study of thnx North Carolina mountain counties provided a range of data which illustrates this point. The counties' industrial waste streams ranged from 12 to 20 percent of the counties' total waste by weight. Demolition and construction waste comprised 7 to 17 percent of total waste composition by weight. Due to the diversity of industrial waste types and generationlevels, it was not possible to extrapolate from this data to other NC counties. Consequently, the reader should be aware that NC waste generation quantities are proportionately higher than reported in Table 1 an 2, and industrial waste compositions are not reflected. Waste oil is also excluded from the Franklin study. The EPA estimated that42 million gallons of waste oil were disposed of in the "trash in 198 1.

Findings Table 1 provides annual generation data and an estimate of potential recoverability for specific materials. The estimates of recoverability assume that recycling has been optimally implemented throughout the State. At a minimum this includes curbside collection of all rigid plastic containers, glass containers, newsprint. aluminum cans, steel food cans, white goods, and yard waste in all incorporated areas. In addition, other

.

UNCITRE NC Recyding Market Development Sb'ategic Phn Project Page C1 4/1191 Recydable Matends Market Assessment Report

waste papers are accepted at drop-off locations, an extensive commercial recycling effort is underway, and unincorporated areas have a convenient drop-off location available.

Paper Paper represents 36.7 percent (1,448,333 tons annually) of the North Carolina waste stream. The recovery potential for paper is estimated at 52.3%. or 767,563 tons. This estimate comes from Franklin Associates' "theoretical maximum recovery" estimate for paper which is defined as "recovery that is technically feasible

rates for aggressive programs in highly metropolitan areas. Consequently, this figure may be high for North Carolina's mix of rural and urban environments.

~

under current conditions." Franklin Associates obtained this percentage through examination of recovery -

Glass Individuals in North Carolina will each generate approximately 99 pounds of glass in 1990. This represents 325,875 tons per year and 8.25 percent of the total North Carolina waste stream. Of this amount, 90 percent is container glass which is considered highly recoverable. The percentage of potentially recoverable glass was estimated through a complex series of calculations which subdivided the waste stream into commercial and residential sectors, the population into incorporated and unincorporated areas and applied different variables to each area. The recovery estimate is 38.2 percent of all glass or 124,484 tons.

Metals Metals represent 8.86 percent (350,014 tons) of the total North Carolina waste stream. Of this amount, it was determined that 49.4 percent is potentially recoverable. This estimate began with the same source used for paper (Franklin's "theoretical maximum recovery"), and was then modified to account for circumstances unique to North Carolina. For instance, it was assumed that due to Senate Bill 111's prohibition of white goods from landfills, 90 percent of white goods were potentially recoverable. The total estimated tonnage of recoverable metals in North Carolina is 172,907.

Plastics It is estimated that 313,805 tons of waste plastics were generated in North Carolina in 1990. This represents approximately 95 pounds per person and 7.95 percent of the total NC waste stream. Forty (40) percent of waste plastics are rigid and considered potentially recoverable. Estimated percent recoverable is 18 percent of total plastics. This figure was based on variables developed by a joint effort of the Massachusetts Department of Environmental Quality Engineering and the Rhode Island Department of Environmental Management. Assumptions include participation by 75 percent of households receiving curbside collection and that 60 percent of plastics entering those households are recycled.

RubbedLeather, Textiles, Wood, Food Wastes and Miscellaneous Inorganics Although combined these materials represent 18.3 percent of the waste stream, there was insufficient data to estimate percent recoverable.

Yard Wastes Approximately 19.8 percent of North Carolina's waste stream is composed of yard waste. A review of yard

recovery of yard waste. A conservative estimate of 60 percent was chosen for this report. This level of recovery assumes that curbside collection of yard waste is provided to incorporated areas, a central composting facility exists, landfills do not accept yard waste, and a special area for yard waste exists at each landfill.

It is recommended that all data in this section be re-evaluated upon the completion of the NC Waste Characterization study. part of the NCRecycling and Waste Management Plan, currently under development for the NC Office of Waste Reduction and the Solid Waste Section of DEHNR.

waste studies and interviews with yard waste recovery experts resulted in a range of 60 to 80 percent potential -

Page G2 NC Recyding Market Development Sbategic Plan Project UNCITRE Recydable Materids Market Assessment Report 4/1191

W

m &

c

~

Total 1,193.15 3,946,708 40.1% 1,582,207

Table 1 1990 NC Municipal Solid Waste Generation and Recovery Estimates*

Material Annual Per Capita Estimated Annual Estlmated Percent Estlmated Annual Generation (Ibsp* Generation (tons) Recoverable Tonnage Recoverabh

Food Wastes 98.55 325,875 NIA tVA GhSS 98.55 325,875 38.2% 124,484 Metals 105.85 350,014 49.4% 172,907 paper 438.00 1,448,333 52.3?'0 757,623 PhStiCS 94.50 313,805 18.0% 56,485 Rubberkeather 29.20 96,556 tVA tVA Textiles 25.55 84,486 tVA tVA Wood 43.80 144,833 tVA tVA Yard Wastes 237.25 784.51 4 60.0% 470,708 Miscellaneous 21.90 72,417 tVA tVA

I I I I

Food Wastes

Metals

plastics RubberAeathe Textiles Wood Yard Wastes Miscellaneous

1995

Annual Per Capita Estimated Annual Generation (ibs) Generation (tons)

2000

Annual Per Capita Estimated Annual Generation (Ibs) Generation (tons)

Table 2 NC Municipal Solid Waste Generation and Recovery Estimates*

' Total

I990

Annual Per Capita Estlmated Annual Generation (Ibs) Generatlon (tons)

98.55 98.55 105.85 438.00 94.50 29.20 25.55 43.80 237.25 21.90

325,875 325,875 350,014 1,448,333 313,805 96.556 84,486 144,833 784,514 72,417

1,193.15 3,946,708

463.6 94.9 109.5 105.9 29.2 25.6 43.8 94.9 237.3 21.9

1,610,787 329,767 380,501 367,817 101,467 88,784 152,200 329,767 824,418 76,100

492.80 91.30 105.90 116.80 29.20 25.60 43.80 91.30 237.30 25.60

1,788,867 331,272 334.275 424,028 106,007 92,756 159,010 33 1,272 861,306 92,756

I 1,226.6 4,261,608 I 1,259.60 4,571,549

-~ ~~

Inhbial Waste %mterhation d Municipd Sodd Waste in the United States, 1990 to 2000, k l d m Awndates, 30 h4mh 1988.

1 I I I

APPENDIX D: ECONOMIC OVERVIEW OF RECYCLING MARKET/ MARKET PRICES FOR RECYCLABLES

Since the latter part of 1989, the Recycling Times publication has included a markets page. This page reports the weekly prices paid by processors and final end-users for recyclable materials by geographic region. The prices are buyer reports of what they paid for the materials during the current two week time period. The prices are FOB so they do not include transportation costs to the processor or the final end-user.

Appendix D presents these weekly data in table form for each type of recyclable: paper, glass, plastics, aluminum used beverage cans, steel, batteries, copper and brass, white goods, lead and PVC. Although seven regions are reported in Recycling Times. Appendix D includes only the South and the Mid-Atlantic Region. North Carolina is in the South region and its northern neighbor, Maryland, is in the Mid-Atlantic Region.

UNCITRE NC Recyding Market Development Strategic Plan Project Page D1 4/1/91 Recydable Materials Market Assessment Report

MID-ATLANTIC REGION PRlCE SURVEY DECEMBER 4,1989 TO DECEMBER 7,1990

PAPER SOLD TO PROCESSORS NEWS I CORRU- I MKED ICOMPUlEI WHITE I COLOAED PAPER I GATED I WASTE IPRINT-OLK LEDGER 1 LEDGER

C4-Dec-89 5 15 0 85 80 45 DATE WON I WON I VrON I WON 1 WON 1 WON

18-Dec89 01JaC-90 15JaC-90 01JaC-90 12-Feb90 1SFeb90 12-Mar-90 26-Mar-90 04Apr-90 23Apr-90 07-May-90 21-May-90 W U n - 9 0 l8-Jun-W 02J~l-90 1 Wul-90 30J~l-90

13-Aug-90

1osepso 17-sep90 o&od-9@ z-ou-90 05NW-90 1 9-NOV-90

27-AUg-90

AMRAGES

1ST QUARTER A M 2ND QUARTER A M 3RD QUARTER A M 4 m QUARTER AM

5 5 5 5 5 5 5 5 5 5 5 0 5 0 0 0 0 0 5 5 5 5 5 5 5

3.85

5.00 4.17 0.83 5.00

18 18 18 15 18 18 10 10 10 10 10 15

15 15 15 10 75 15 15 15 15 15 15 15

14.51

,l8

1625 1217 14.17 15.00

0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0

0.00

0.00 0.00 0.00 0.00

85 85 85 85 85 85 85 85 85 85 85 70 70 60 60 60 60 60 60 60 75 75 75 75 75

75.19

85.00 80.00 60.00 72.50

Source: Waste Age's Reqding Tmes, "Market Prices for ReqdaMes. 1990"

80 80 80 80 80 80 80 80 80 80 75 65 65 65 65 45 45 45 45 45 45 45 45 45 45

64.04

80.00 74.17 51.67 45.00

45 45 45 45 45 45

45 45 45 25 25 25 25 25 25 25 25 25 25 25 25 25 25

33.33

45.00 37.00 25.00 25.00

Page D2 NC Recycling Market Development Strategic Plan Project UNCITRE Recyclable Materials Market Assessment Report 4/1/91

MIDATLAhTIC REGION PRICE SURVEY DECEMBER 4,1989 TO DECEMBER 7,1990

18-D-89 01 Jan-90 15Jan-90 01 Jan-90 12-Feb-90 16-Feb-90 12-Mar-90 &Mar-90 WApr-90 23-Aqr-90

07-May-90 21-May-90 OdJUM3 18Jun90 02J~l-90 1WUl-90 3oJuc90

27-AUg-90 13-Aug-90

1Dsep90 17sep90 08-a-90 Z-oct-90 05N0v-90 14N0v-90

AMRAGES

1ST QUARTER A M 2ND QUARTER A M 3RD QUARTER A M 4 M QUARTER A M

20 50 20 20 20 20 15 10 10 20 15 15 15 15 15 15 15 20 15 20 20 20 20 20 15 15 15

16.92

16.88 15.83 17.50 17.50

50 50 50 30 30 30 30 30 30 30 30 25 30 30 30 30 40 40 40 40 4 0 , 40 40 40 40

35.35

40.00 29.17 35.00 40.00

15 15 15 15 10

-10

-10 -10 -10 -10 -10 10 10 10 10 10 10 10 10 7.5 7.5 7.5 7.5 7.5 7.5

5.40

7.14 -3.33 10.00 7.50

355 355 355 355 355 355 330 330 330 330 330 330 330 330 330 330 330 330 330 205 230 239 230 230 230 230

307.88

348.75 330.00 309.17 230.00

Source: Waste Age‘s Recydirg 7m. ‘Market Prices for R e q d a t k , 1990’.

310 310 310 310 310 310 220 310 310 310 31 0 220 220 220 220 220 220 220 220 220 220 220 220 220 220 220

254.62

298.75 265.00 220.00 220.00

160 160 160 160 160 160 160 160 160 160 160 120 120 120 120 120 120 120 120 120 120 120 120 120 120 120

136.92

160.00 140.00 120.00 120.00

UNCITRE NC Recycling Market Development Strategic Plan Project Page D3 4/1/91 Recyclable Msterials Market Assessment Report

SOUlHERN REGION PRICESURVEY DECEMBER4,1989 TO DECEMBER 7,1990

REGION [DATE

PAPER S O D TO PROCESSORS NEWS 1 CORRU I MKED (COMPUTE1 W H E 1 COLORED PAPER 1 GATED I WASTE IPRINT-OLJTI LEDGER 1 LEDGER

WON IWON IWON IWON ($'TON IWON

18-De89 01 Jam90 l"90 wm90 12-Feb90 16-Feb90 12-Mar-90 26-MX-90 09-Apr-90 23-Apr-90

07-May90 21 -May40 W U n - 9 0 1Wun-90 02-Jul-90 1 Wul-90 30J~l-90

15Aup90 27-Aug-90 1oSep90 17sep90 08-06-90 Pad-90 05N0v-90 19-Nov-90

AVERAGES

1ST QUARER A M 2ND QUARTER A M 3RD QUARTER A M 4TH QUARTER A M

15 20 20 20

5 10 5

10 10 10 10 10 10 10 19 10 10 10 5 5

10 10 10 10 10

10.77

13.33 10.00 8.57

10.00

20 20 20 20 20 20 10 20 20 20 10 20 20 20 20 10 20 20 20 20 20 20 20 20 20

18.85

18.89 18.33

20.00 18.57

5 2 2 2 2 2 2 2 2 2 2 0 0 0 0 0 0 0 0 0 0 2' 2 2 2

1.46

267 1 .OO 0.00 200

150 140 150 150 150 150 160 160 160 160 160 85

120 120 120 100 100 100 80 80 80 80 80 90 80 80 80

116.35

154.44 117.50 85.71 8250

Source: Waste Age's Rqd ing Xms. 'Market Prices for RecydaMes. 1990'.

140 140 140 140 140 140 140 140 140

80 80 80 80 80 80 40 30 40 20 60 20 60 20 60 30 60 30 60 30 60 30 60 30

95.20 26.67

140.00 NOQUOTE 92.00 NOQUOTE 60.00 24.00 60.00 30.00

NC Recycling Market Development Strategic Plan Project Recyclable Mater& Market Assessment Report

UNCITRE 4/1191

Page D4

SOUlHERN REGION PRICE SURVEY DECEMBER 4,1989 TO DECEIUBER I, 1990

I PAPFR S(

18-Dec89 01 Jarrso 15JXi-90 marr90 12-FebW 16-Feb-90 12-Mw-90 26-Mar-90 04Apr-90 23-Apr-90

07-May-90 21-May40 04400-90 1wuw90 MJuI-90 16-Jul-90 3wuI-90

13Aug-90 27-Aug-90 1-p90 17-Sep-90 oEOct-90 za-90 05-Nw-90 1 SNW-90

AVERAGES

1ST QUARTER A M 2ND QUARTER A M 3FD QUAA[ER A M 4m a u m AM

30 30 30 30 30 30 30 30 30 30 30 30 5 5 5 5

10 20 20 20 25 25 25 25 25

23.27

30.00 21.67 15.00 25.00

40 40 40 40 40 40 40 40 40 40 40 40 40

40 40 40 40 40 40 40 40 40

40.00

40.00 40.00 40.ffi 40.00

25 25 25 25

-10 -10 -10 -10 -10 -1 0 -10 -10 -10 -10 -10 -10 -10 -10 -10 -1 0 -10 -10 -10 -10 -10

-3.27

9.44 -10.00 -1o.m -10.00

310 310 315 315 300 300 300 300 300 300 305 300 300

200 200 200 200 200 200 200 200 200

263.70 225.00 NOQUOTE

306.67 225.00 NOQUOTE

200.00 NOQUOTE NOQUOTE 301.00 NO auom NO QUOTE

m.00 NO aucm NO QUOTE

Source: Waste Age's Reqding limes, 'Market P h s for Recydables, 1990'.

UNCITRE NC Recycling Market Development Sbategic Plan Project Page D5 4/1/91 Recyclable Mater!& Market Assessment Report

MDATLANTK REGION PRICE SURVEY DECEMBER 4,7989 TO DECEMBER 7,1990

FUNT AMBER I EMERAU) 1 MIXED

18-DecS9 01Jan-90 15JaJ+90 01Jan-93 12-Feb-90 16-F€i3W 12-Mar-90 26-Mar-90 03-Apr-90 23-Apr-90 07-May-90

04-JUWSO IEJun-90 02Jul-90 1 Wul-90 WUI-90

27-Aug-90

21-May-90

13-Aug90

1O-SepSo 17Sep90 08-06-90 22-06-90 MNW-90 19-Nov-90

DATE

20 25 25 25 25 25 40 40 20 10 10 10 10 10 10 10 10 10 20 20 20 20 10 20 20

$/TON WON I $/TON I $/TON

20 25 25 25 23 25 40 40 20 10 10 10 10 10 10 10 10 10 20 20 20 a 23 20 23

20 25 25 25 25 25 40 40 20 10 10 10 10 10 10 10 10 !O 10 10 10 10 10 10 10

10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10

AVE~AGES 19.42 19.81 17.12 10.00

1ST QUARTER A M 28.13 28.13 28.13 10.00 2ND QUARTER A M 16.67 16.67 16.67 10.00 3RD QUARTER A M 1 1.67 1 1.67 10.00 10.00 4TH QUARTER A M 18.3 20.00 10.00 10.00

Source: Waste Age‘s Recyding Times. ‘Market Prices lor Recydables, 1990’.

Page D6 NC Recycling Market Development Sbategic Plan Project UNCITRE Recyclable Materials Market Assessment Report 4/1191

MID-ATLANTIC REGION PRICE SURVEY DECEMBER4,1989 TO DECEMBER 7,1990

FUNT AMBER I EMERALD

1 &Dec89 01Jan-90 15Jan-90 01Jan-90 12-Feb-90 lGFeb-90 12-Mar-90 26-Mar-90 04Apr-90 23-Apr-90

07-May-90 21 -May% 0AlUl-t-90 l&lu*90 02JuCW 16Ju!-90 30J~l-90

13-Aug-90

1osep90 27-Aog-90

17-Sep90 Oe-06-90 Boa-1-40 05Nov-90 14Nov-90

DATE I $/TON I $/TON

AVERAGES

$/TON

1 ST QUARTER AVE 2ND QUARTER A M 3RD QUARTER AVE 4TH QUAFITER A M

65 65 65 65 65 60 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55 55

57.50

63.13 55.00 55.00 55.00

50 50 50 50 50 60 50 50 50 50 50 50 5c 50 50 50 50 50 50 50 50 50 50 50 50

50.38

51 25 50.00 50.00 50.00

50 50 50 50 50 30 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50 50

49.23

47.50 50. 00 50.00 50.00

Source: Waste Age's Recyding limes. 'Market Prices for Recydables. 1990'.

UNCITRE NC Recyding Market Development Strategic Plan Project Page D7 4/1/91 Recyclable Materials Market Assessment Report

SOUIHERN REGION PRICE SURVEY DECEMBER 4,1969 TO DECEMBER 7,7990

FLINT AMBER I EMERALD 1 MIXED

1 &De089 01 Jan-% 15J" 24JaJl-90 12-Feb90 16-Feb90 12-Mar-90 26-Mar-90 04Apr-90 23-Apr-90

07-May-% 21 -May-90 W U n - 9 0 18Jun-% 02Jul-90 16Jul-90 30Jul-90

13-AUg-90 27-Aug-% 1C-%J-90 17-Sep90 08-06-90 22-ou-90 05-Nw-90 14NOV-90

AVERAGES

1ST QUARTER A M 2ND QUAFmR A M 3RD QUARTER A M 4TH QUARTER A M

30 30 30 30 40 40 40 30 30 30 30 30 30 30 30 40 5 5 5

10 10 10 10 10 10

24.04

33.33 30.00 15.00 10.00

30 30 3a 30 40 40 40 30 39 30 39 30 30 30 20 40 0 0 0 10 10 10 10 10 10

23.46

33.33 30.00 12.86 10.00

30 30 30 30 40 40 40 30 30 30 30 30 30 30 30 40 0 0 0

10 10 10 10 10 10

23.46 NOQUOTE

33.33 NOQUOTE 30.00 NOQUOTE

10.00 NOQUOTE 12.86 NOOUOTE

Source: Waste Age's Recfding Times, 'Market Prices for Recfdables, 1990".

Page D8 NC Recycling Market Development Strategic Plan Project UNCITRE Recyclable Materials Market Assessment Report 4/1/91

SOUTHERN REGION PRICE SURVEY DECEMBER 4,1989 TO DECEMBER 7,1990

1 DATE

GLASS - SOLD TO END USERS FUNT I AMBER I EMERALD $/TON $ITON i WON

18-DecS9 01 Jaw90 l!=.JJarrSO maw90 12-Feb90 i6-Feb90 12-Mar-90 Z5-Mar-90 09-Apr-90 23-Apr-90

07-May-90 21-May-90 04JUW90 18Jun-90 02JuI-90 16Jul-90 3 O J U C 9 0 13Aug-90 27-Aug-90 10-Sep90 17Sep90 08-06-90 22-06-90 MNW-90 19-Nw-90

80 60 60 60 60 60 80 80 80 80 80 80 80 80 80 80

50 50 50

65 60 30 60 30 60 30 60 30 60 30 80 30 80 30 80 30 80 30 80 30 80 30 80 30 80 30 80 30 80 30

50 50 50 50 50 50

AMRAGES 70.50 69.75 33.33

1ST QUARTER A M 68.89 67.z 30.00 2ND QUARTER A M 80.00 80.00 30.00 3RD QUARTER A M 80.00 80.00 30.00 4m QUARTER AM 50.00 50.00 50. 00

Source: Waste Age's Recjding Times, "Market Prices fcf Recjdables, 1990'.

UNCITRE NC Recycling Market Development Strategic Plan Project Page D9 4/1/91 Recyclable Materids Market Assessment Report

MIDATlANllC REGION PRICE SURVEY DECEMBER4,1989 TO DECEMBER 7,1990

P L A S T I C CLEAR P ~ C L E A R p a GREEN I MIXED I PET& HDPI HDPE JHDPE-MIXED

BALED IGRANULAI PET I PET I MIXED 1 NATURAL I RlGtD CONT. DATE a. I w. I w. I w. I w. I w I CAE

-

18-Dec-89 01 Jari-93 15Jari-93 01Jari-93 12-Feb-90 16-Feb95 12-Mar-90 26-Ma-90 04Apr-90 23-&r-90

07-May-90 21-May-90 Wsn-90 18Jurr93 02JUl-90 l&JucSo 3Wul-90

27-Aug-90 13-AUg90

1OSep90 17ssp90 0&06-90 P-Oc+90 05Nov-90 19-Nov-90

AVERAGES

1 ST QUARTER A M 2ND QUARTER A M 3RD QUARTER A M 4TH QUARTER A M

11 10 10 10 10 10

10 10 10

10 12 10 10 10 10 10 10 10 10 10 10 10 10

10.13

10.14 10.40 10.00 10.00

11 11 11 11 11 11 10 13 13 13

13

13 13 13 13 13 13 13 13 13 13 13 13

1229

10.88 13.00 13.00 13.00

6 10 10 10 10 10 13 10 10 10

10 12 10 10 10 10 10 10 10 10 10 10 10 10

9.88

9.38 10.40 10.00 10.00

6 10 10 10 10 10 10 10 10 10

10 12 10 10 10 10 10 10 10 10 10 10 10 10

9.76

9.00 10.40 10.00 10.00

Source: Waste Age's Recjding Times. "Market Prices for Reqdabies. 1990'.

6 6 6 6 6 6 6 6 6

5 9 6 6 6 6 6 6 6 6 6 6 6 6

6.09

6.00 6.40 6.00 6.00

11 11 11 11 11 11 11 11 11 11

11 10 11 11 10 10 10 10 10 10 10 10 10 10

10.52

10.88 10.80 10.33 1o.m

5 5 5 5 5 5 5 5 5 5

8 5 8 8 8 8 8 8 8 8 8 8 8 8

6.56

5.00 5.m 8.00 8.00

Page D10 NC Recyding Market Development Strategic Plan Project UNGlTRE Recyclable Materials Market Assessment Report 4/1/91

SOUlHERN REGION PRICE SURVEY DECEMBER4,1989 TO DECEMBER 7,1990

1 DATE

P L A S T I C CLEARP~CLEARPE~ GREEN I MIXED I P E T ~ H D P ~ HDPE IHDPE-MIXED

m. I m. I QRB. I m. I w. I w. I w. BALED IGRANULAI PET I PET I MIXED 1 NATURAL I RIGID COW.

-

18-Dec89 01Jan-90 15JaJI-90 “90 12-FebW 16-Feb90 12-Mar-90 2w&u-90 09-Apr-90 23-Apr-90

07-May-90 21-May-90 041Un-90 lMurr90 02Jul-90 1MUC90 30JUC90 13-AUg90 27-Aug-90 1o-SeF-90 17Sep90 o&06-90 2r?-od-90 05Nov-90 14Nw-90

AMFiAGES

1STQUARTERAM 2ND QUARTER A M 3RD QUARTER A M 41H QUARTER AVE

11 10 10 10 10 10 10 10 10 10

10 10 10 10 7 7 7 7 7 7

10 10 7 7

9.04 NOQUOTE

10.00 NOQUOTE

7.43 NOQUOTE 10.00 NOQUOTE

8.50 NOQUOTE

10 10 10 10 10 10 10 10 10

10 10 10 10 10 10 10 10 10 10 10 10 10 10

10.00

10.00 10.00 10.00 10.00

7 10 10 10 10 10 10 10 10 10

10 10 10 10 10 10 10 10 10 10 10 10 10 10

9.76

9.33 10.00 10.00 10.00

Source: Waste Age’s Recyding Times. ‘Market Prices for Recydables. 1990”.

5 6 6 6 6 6 6 6 6 6

6 6 6 6 6 6 6 6 6 6 6 6 6 6

5.92

5.78 6.00 6.00 6.00

10 10 10 10 10 10 10 10 10 10

10 10 10 10 10 10 10 10 10 10 10 10 10 10

9.96

9.89 10.00 10.00 10.00

4 4 5 5 5 5 5 5 5 5 5

5 5 5 5 5 5 5 5 5 5 5 5 5 5

4.92

4.78 5.00 5.00 5.00

UNCITRE NC Recyding Market Development Strategic Plan Project Page D11 4/1191 Recyclable Materials Market Assessment Report

W O 1 00'01 00'0 1 OP'8

09'6

01

01 01 01 01 01 01 01

01

01 01 01 01 01 01 01 01 01 9

00'0 1 mot 00'0 1 08'0 1

E O 1

01

01 01 01 01 01 01 01

01

01 01 01 01 01 01 01 01 01 01

P1

00'1 00'1 W L LB'O

96'0

1

1 1 1 1 1 1 1

1

1 1 1 1 1 1 1 1 1 1

1

6o'PP 1 6 " 98'0 00'16 80'19 WLE 53wwv

os sa so

1 1

sp S6 1 1

op 5% 6V s

1

9 sa 1 op LE 1 sp 08 sp ZL 1 PP 06 1

sp SL so

Z l l 211 Z l l 211 211 211 211 211 ZLL 211 Z l 1

211 OL OL OL OL OL OL OL OL OL OL OL

6P os os

6s 6s Es Es zs IS Es Es Es 6s 8s ps ps zs LE SE SE zs 29 zs

IE ZE IE op op ZP ZP op op op op Lz 09 sp sp 09 LE op LE SE PE EE 9E PE op

APPENDIX E: SOURCE LIST

At a G1ance:Recycling Solid Waste. Washington, D C National Solid Waste Association, 1989.

Banner, Robed A. MarketResearch on Plastics Recycling. New Brunswick, NJ:Center for Plastic Recycling Research, p.3.

Decision Maker's Guide to Solid Waste Management. Washington. DC:US Environmental Protection Agency, Office of Solid Waste, 1989.

Facts 1989: A Summary of Ferrous, Nonferrous and Paper Statistics. Washington, DC: The Institute of Scrap Recycling Industries, 1990.

Franklin Associates, June 1990. as cited in Characterization of Municipal Solid Waste in the US. (Washington, DC:US Environmental Protection Agency, Office of Solid Waste, June 1990, pp. E5-7).

Market Assessment of Material Mandated for Recovery in Connecticut. Somerville. MassachusetkMt. Aubum Associates, 1990.

Market Development in Recycling for the Srate of Colorado. Denver, Colorado: The Office of Energy Conservation. June 1990.

Markets for Selected Postconsumer Waste Paper Grades:FinaI Review Drafr. Franklin Associates, Ltd.. 1990.

Maryland Recyclable Material MarketStudy:II. Mary1and:Department of Environment, 1990.

Michigan Secondary Material Murket Development Study. Prepared for the US Environmental Protection Agency by Franklin Associates, Ltd., February 1987.

0verviau:Solid Waste Disposal Alternatives. Stamford, Connecticut:Keep America Beautiful, 1989.

Paper Recycling andlts Role in Solid Waste Management. New Yo&. New YorkAmerican Paper Institute. 1990.

Powell, Jerry. "How Are We W i g ? The 1989 Repod." Resource Recycling, May 1990, p.37.

Recyclable Materials Market Recovery Study. Pennsylvania: Commonwealth of Pennsylvania, 1988.

The Recycling Process After Collection. Oregon: Department of Environmental Quality, 1989.

Solid Waste Reduction:Alternatives for North Carolina. Raleigh, NC:Pollution Prevention, 1988.

The Solid Waste Dilemma: An Agenda for Action, Appendices A-B-C. Washington, D C The US Environmental Protection Agency, Office of Solid Waste, 1988.

UNCITRE NC Recydicg Market Development Sbategic Plan Pmjed Page E-1 411191 Recydable Materials Market Assessment Report

Summary of the Virginia Department of Waste Management’s Solid Waste Management Planning Regulations. Richmond, VA: Virginia Department of Waste Management, 1990.

A Survey on the Use of Recycled Newsprint Within the North Carolina Industry. North Carolina: North Carolina Press Association, 1990.

World Trade Report Fiscal Year Ending June 30,1990. Wilmington. NC:North Carolina Port Authority, 1990.

~

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Page E-2 NC Recyding Market Developmed Strategic Pkn Projed UNCITRE RecydaMe Materials Market Assessment Report 4/1/91

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