ECO$Plas)cs$LimitedJonathan'Short

Founder'and'Deputy'Chairman

MRF$Regula*ons$EventBristol

1st$July$2014

Agenda

Progress'from'2006'through'to'2013

Quality'Counts

Conclusion

ECO'Plas<cs'Overview

What'the'customer'wants

How'we'can'help

2006$–$First$Plant$Installed$in$an$aircra3$hangar,$North$Lincs

Plant&Descrip.on:•$£1.2m$capital$cost•$25,000$tonnes$per$annum•$4$x$Dtech$units•$Three$material$outputs

•$Natural$HDPE$bales•$DryKwashed$natural$PET$flake•$Baled$‘other$plasDcs’

2013%–%Todays%site

New$Sort)Line$Descrip1on

New$sort)line$descrip0on:$

•$£15m$capital$cost•$24$tonnes$per$hour•$20$x$1tech$units•$Eleven$outputs:

•$Dry)washed$natural$PET•$Dry)washed$jazz$PET•$Dry)washed$or$baled$natural$HDPE•$Jazz$HDPE•$Natural/coloured$PP•$Olefin$film•$Jazz$PS•$Natural/coloured$PVC•$‘Other’$plas1cs$–$mostly$black•$‘Fines’$–$mostly$boTle$caps/rings•$Paper$flats$

The$World’s$Largest$and$Most$Technically$Advanced$Plant

$

We#accept#an#inconsistent#and#dirty#feedstock#(waste)#and#making#‘engineered’#productsfor#customers#including#material#suitable#for#‘direct#food#contact’.

What#other#industry#faces#such#a#challenge?Sort?line:$

• The$most$complex$part$of$the$plant

• 150,000$tonnes$per$annum$processing$capacity

• Designed$with$future$expansion$in$mind$–$up$to$250,000$tonnes$in$same$building

• UlGmate$flexibility$in$sorGng$polymer$–$20$x$Titech$mulGHfuncGon$units

• ContaminaGon$removed$as$soon$as$possible

• 24/7/361$operaGon$–$over$1200$quality$data$points$captured$per$day

$

PET#Wash?lines#and#Flake#Sort#Module:• 72,000$tonnes$of$capacity$across$two$wash$lines

• 60,000$tonnes$of$flake$sort$capacity

• 1300$quality$checks$per$day$–$all$measurements$in$parts$per$million

$

PET#Extrusion#lines:• 40,000$tonnes$capacity$across$two$lines

• 360$quality$checks$per$day

$

$

$

$

$

Joint&Venture&signed&with&Coca3Cola&Enterprises&(GB)&Ltd

CCE (GB) and Coca-Cola Company (KO)

• KO&is&the&parent&company&and&controls&the&‘syrup&recipe’&and&markeCng&for&the&business;&thefilling&and&distribuCon&of&the&product&sits&with&their&franchisees&around&the&world

• CCE&(GB)&is&KO’s&4th&largest&franchisee&with&13,500&employees&and&access&to&170&m&consumers• KO&and&CCE&share&the&same&2020&sustainable&vision&including&100%&sustainable&packaging.• rPET&is&key&to&achievement&of&this&vision&with&50%&the&target&for&2020.• Globally&KO&uses&2,000,000&tonnes&per&annum&of&PET&for&packaging.

&The$EP/CCE$J.V.&

• Strategic$importance• Secures&off3take&to&GB’s&largest&user&of&PET&for&beverages&(20%&market&share)• Barrier&to&new&entrants&in&the&rPET&market• CCE/KO&has&the&highest&quality&criteria&–&EP&seen&as&premier&producer• Passing&material&validaCon&first&Cme&certainly&helps&in&other&future&opportuniCes&with,

not&only&CCE&but&KO• Commercial$Importance• Pricing&secured&to&feed3stock&and&‘cost&plus’&model&on&ten&year&supply&deal• EP&major&shareholder

&&&

&

What%do%our%customers%require%(demand)?

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Quality: Our customers demand it and it is at the heart of what we do:

• Sort-line – 1200 quality data points captures each day• Wash-line – 1300 quality data points captured each day• Flake-sort module – 600 quality data points captured each day• Extrusion – 360 quality data points captured each day

Two labs on site, quality manager heading a team of 10 quality technicians In total 33 saleable outputs and 33 specification sheets

No demonstration of quality no sale

Quality always sells

Current'buying'process'for'baled'plas4c

Could&we&build&a&bridge&this&way?

What%do%we%require?

% % % %

% % % %

% % % %

Yes - quality and value:

1. Plastic bottles – value2. PP – the only value in ptt

No - contamination and cost:

• Paper – 9%• Glass – 5%• Film – 6%• Black plastics – 6%

Please - transparency

• MRF COP should help deliver this• Must be rigorously policed and enforced• Specification sheets from supply chain – too early?

How$can$EP$help?

$ $ $ $

$ $ $ $

$ $ $ $

Material Assessment:

• Moving towards 100%• Feed-back to our supply chain partners• Paying dividends – two way communication

SQA team

• Established mid 2013• Utilising our expertise in plastic sorting• 12 MRFS visited so far and improvements made• Increased value achieved for outputs from those facilities

Conclusion

• The resource industry has grown very quickly on the back of a hungry Asian market – now is the time to focus on quality • Quality always sells and achieves the highest value

• All stakeholders should be demanding quality • MRF COP should help this evolution • With a focus on quality we have a tremendous opportunity to create jobs in green manufacturing and make a significant contribution tothe nascent circular economy

!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

THANK-YOU FORLISTENING