SWAC Meeting

February 16, 2012

Founded by Gino Biasi in 1973.

Based in Toronto, OH.

Started the company with two employees.

Valley Converting would purchase rolls and sheets of chipboard from the Toronto Paperboard Mill and convert them into smaller sizes, pasted, tied, scored, and long sheets.

Converting operation grew to over 10 employees working six days a week

Toronto Paperboard mill encountered serious corporate problems in the mid 80s and closed in September 1987

Gino Biasi personally bought the mill in May 1988

Started making chipboard on #1 Paper Machine by July 1988 and on the #2 Paper Machine in January 1990

Due to economic conditions we shutdown our #2 Paper Machine in November 2000

We currently manufacture over 84 tons a day and 21,600 tons annually on our #1 Paper Machine

Chipboard is made up of 100% recycled fiber

• We purchase the majority of our recovered fiber from paper scrap dealers

• We also purchase from local business and regional waste programs

• Two grants from the Ohio Department of Natural Resources in ’04 and ’07 for a total of $500,000. These grants enabled us the ability to build the Recycling Center and purchase the necessary cleaning equipment for the recovered fiber.

• We purchase Old Corrugated Containers (OCC), Newsprint, Mix, and Boxboard Cuttings from Brokers, County Recycling Programs, Local Businesses, and the General Public

• The makeup of our chipboard:– OCC - 15%– News - 15 %– Mix - 20%– Boxboard - 50% 

• Scrap comes generally from Ohio, West Virginia, and Pennsylvania and within a 200 mile radius of our plant. Freight limits how far out we can go out and get scrap.

•In 2011, we purchased 21,700 tons of scrap

• Scrap Brokers - 16,700 tons• County Recycling Programs - 2,300 tons (Jefferson/Belmont - 1,700 tons)• Local Businesses - 1,100 tons• Daily Scrap Purchases - 1,600 tons

•Cost of scrap:• 2010 - $ 89/ton ($1,730,000)• 2011 - $125/ton ($2,700,000)

• Manufacturing and converting chipboard is a capital intensive industry 

• Our four biggest expenses are the following:• Scrap Paper• Wage / Health Benefits• Electric• Natural Gas 

• Chipboard market is maturing and not a lot of new innovations that require use of chipboard

• Manufacturing quality chipboard in the most cost-effective manner and increasing this production on a yearly basis

Mike Biasi(800) 255 -0799or (740) 537-2152mike@valleyconverting.com