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New Developments in the Carolinas Recycling Economy March 28, 2017 Will Newsome Manager of Trade Sales & Field Procurement

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Page 1: New Developments in the Carolinas Recycling Economy · New Developments in the Carolinas Recycling Economy ... Ø Products sold in 85 nations Sonoco Products Is a Global ... Sonoco

New Developments in the Carolinas Recycling Economy March 28, 2017 Will Newsome Manager of Trade Sales & Field Procurement

Page 2: New Developments in the Carolinas Recycling Economy · New Developments in the Carolinas Recycling Economy ... Ø Products sold in 85 nations Sonoco Products Is a Global ... Sonoco

Ø  Founded 1899 in Hartsville, S.C. Ø  Diversified provider of consumer,

protective & industrial packaging and services

Ø  $5 billion in sales Ø  20,000 employees Ø  300 operations in 35 countries Ø  Products sold in 85 nations

Sonoco Products Is a Global Packaging

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Segments

CONFIDENTIAL

Page 4: New Developments in the Carolinas Recycling Economy · New Developments in the Carolinas Recycling Economy ... Ø Products sold in 85 nations Sonoco Products Is a Global ... Sonoco

Segments

CONFIDENTIAL

Page 5: New Developments in the Carolinas Recycling Economy · New Developments in the Carolinas Recycling Economy ... Ø Products sold in 85 nations Sonoco Products Is a Global ... Sonoco

Segments

CONFIDENTIAL

Page 6: New Developments in the Carolinas Recycling Economy · New Developments in the Carolinas Recycling Economy ... Ø Products sold in 85 nations Sonoco Products Is a Global ... Sonoco

Segments

CONFIDENTIAL

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Sonoco North America Integrated Business

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IntegratedSupplyChainModel

Recycling Paper Conver8ng

§ 22Plants§ 4MaterialRecoveryFacili8es(MRF)§ Collect3milliontons

§ 13PaperMillswith21papermachines

§ 1.3milliontonsofPaperboard

§ 3Adhesiveloca8onsandForestProducts

§ 75IndustrialandConsumerconver8ngopera8ons

§ Consumeinternallysuppliedpaperboardandadhesives

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Keeping up with change….

Ø  The dynamics of recycling are constantly changing. Ø Market demand (extreme price highs and lows over the past several

years) Ø Residential Single Stream Compositions Ø  Inbound quality Ø Route Density

Ø  Investments are necessary in keeping up with these changes. Ø  Having the proper equipment in place allows us to become more

efficient, increases our overall capacity, provides our customers with a quality product, and allows us to be more competitive in the market place.

Ø  Sonoco Recycling is committed to the industry and will continue to make investments where needed for growth. 9

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Onslow MRF – Jacksonville, NC

Ø  Began operations in September 2012 to serve Onslow Co and the surrounding areas.

Ø  2015 Investments: Ø Added Covered Tipping Building – Protects loose commingled material

from weather Ø Metering Bin – Optimized sorting capabilities Ø Optical Sorters – Increased recovery of plastics by 30%

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NEW TIPPING BUILDING – January 2015

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NEW METERING DRUM /IN FEED – June 2015

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OPTICAL SORTER – October 2015

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New Hanover Co – Wilmington, NC

Ø  Sonoco Recycling jointly with NHC invested in building renovations and equipment. Ø  Hub-Spoke Model with equipment to sort 80% of Commingle Recycling

Ø Additional material sent to Jacksonville for further sorting Ø  Capability to sort annually over 30,000 tons/year of commingle recyclables Ø  Added 20 new jobs to the area Ø  Positioned to grow with the Wilmington area over the next 10 years Ø Worked closely with other local municipalities (City of Wilmington and surrounding

coastal communities) to make project a success Ø  Began processing in March 2016

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New Hanover County Facility (Wilmington NC)

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New Hanover County Facility (Wilmington NC)

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New Hanover County Facility (Wilmington NC)

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New Hanover County Facility (Wilmington NC)

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New Hanover County Facility (Wilmington NC)

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Raleigh

Added a new CP Manufacturing glass breaker screen deck to the existing 2 screen decks and relocated all of these components to the front-end of the MRF system.

Ø  Increased glass recovery by 9% Ø  Reduces wear and tear on equipment Ø  Improves quality for our customers

Added a 3-deck OCC screen

Ø  Reduces the amount of manual labor needed to recover OCC Ø  Provides for a cleaner newspaper and OCC pack for the consuming mill

These upgrades serve to improve efficiencies in our Raleigh operation that will allow Sonoco Recycling to increase its overall capacity.

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Raleigh

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Other Investments Sonoco Recycling

Ø  Columbia - Installed a new baler in November 2016 to increase efficiencies Ø  Columbia – Replacing a newspaper screen to improve quality Ø  Looking to replace a plant baler in North Carolina Ø  Installing a new IT system at all plant locations Ø  Replacing tractors, trailers, fork trucks, etc

Sonoco Paper Mill – Hartsville, SC Ø  Major upgrade on PM #3 Ø  Major upgraded to the stock prep area at URB mill (6 PM’s)

Ø  Improved cleaning system, which now allows us to utilize alternative furnish Sonoco Consumer Packaging

Ø  Nov 2016 - Acquired Plastic Packaging, Inc. – Hickory, NC Ø  Originally founded in 1957 Ø  Frozen foods, baked goods, seafood, pet food, health & personal care

Ø  Mar 2017 - Acquired Peninsula Packaging Co. – 3 West Coast, 1 Wilson, NC Ø  Largest consumer of recycled drink bottles in the US Ø  Leading manufacturer of thermoformed packaging for fresh fruit & vegetables

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Questions

Will Newsome (843) 339-6230

[email protected] www.sonoco.com