Single Stream, What’s the Future?

Smurfit Stone Container Corp.Santa Clara Mill

Dick Johnston General Manager

What Does My Mill Make?

• 135,000 tons per year of 100% recycled Consumer Packaging Paperboard

• Clay Coated for Printing

• You buy it as a Cereal Box or a Tissue Box

What’s Important?

• Fiber Cleanliness for Consumer Packaging

• A minimum of Throw Outs so we don’t overwhelm the cleaning system

• Minimize Wax, Oils, Plastics, Metal (In that order)

What is a Given

• The Asian Pacific Wastepaper Market sets the price of wastepaper on the West Coast

• China’s demand for Wastepaper will continue to grow while domestic production is shutdown

• This results in a Loss of High paying manufacturing jobs

• Energy Costs will continue to climb

What’s Given Continued

• Freight costs will become a bigger factor in final cost of all products.

• Today’s US Paper Manufacturers are

challenged to get enough capital to be able

to clean the high level on contamination in

Single Stream Collections

• Land Fill costs are moving from the collection

to the manufacturing

What Could Happen

• What if China and the US should get into a

trade dispute? Where do we sell all this Single

Stream Material?

• China could become more restrictive on the %

throw outs pushing separation costs back in the

collection stream

• Lower Pricing of European’s single stream

material can upset movement of US material

Options

• Do nothing

• State offer Grants, Low Interest Loans or Investment Tax Credits to help offset the capital costs of better separation and cleaning systems.

• Repeal the 50% diversion rate and go back to pushing source separation.