Polyven Recycling Plastics Overview 2011

8/3/2019 Polyven Recycling Plastics Overview 2011

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www.mathelinbay.com

www.mathelinbay.com Your MBA in the resin business

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Canadian Plastics Resin Outlook ConferenceOctober 6, 2011

The Outlook forRecycled Resins


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Agenda

The recycling industry is playing a significant role in

helping companies develop and implement winning

strategies to help offset rising raw material costs.

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Recycled Resin Overview

Mathelin Bay Introduction

Fundamentals Recycled Resin

Prime Resin Markets

Industry Outlook


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Mathelin Bay Associates

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INTRODUCTION

Mathelin Bay leverages extensive multi-disciplined

experience and networking to help clients develop

sustainable resin programs that reach the bottom line.

Resin Procurement for Processors.

Non-Resin Procurement for

Processors.

Sales Supportfor Processors.

Mergers & Acquisitions and Private

Equity Supply Chain Rationalization.


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RECYCLED RESINSFundamentals

Demand continues to increase

Supply continues to decrease

Prime & Secondary market correlation

Recycled content / environment

Alternatives for recycling industry

Just as in polymer resin industry economics, recycled resins

have a unique set of drivers that impact their market .


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DemandCONTINUES TO INCREASE

Sourcing strategies for recycled resins are key.

Despite economic downturnthere is significant demand

increase for plastic raw

materials to help offset risingfeedstock costs.

Demand for historical scrap,

regrind and repro is at all timehigh and will continue to rise.


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SupplyCONTINUES TO DECREASE

Supply streams are valuable commodities.

Despite increased recycling efforts,supply of post industrial feedstock is

decreasing and post consumer

feedstock is marginally improving.

This will translate into higher costs

across the entire value chain over

the near term and increase scrap

and repro pricing in themarketplace.


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SupplyCLASSIFICATIONS


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SupplyCLASSIFICATIONS


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Market CorrelationVIRGIN PRIME and SECONDARY

Traditionally recycled resin prices lag in relation to virgin

commodity pricing both in an up and down market.

There is correlation exhibited

between recycled resins Vs virgin

prime and secondary markets over

time.

Recycled resins are becoming and

establishing a unique market all onto

themselves despite this correlation.


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EnvironmentRECYCLED CONTENT PUSH

We will continue to move into more creative and innovative

ways to manage our waste and build efficiencies.

3Rs and zero landfill initiativeswill stay as the norm.

Major OEM brands are

capitalizing on marketing.

Alternative fuel option.

Waste to Energy movement.


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AlternativesRECYCLING OPTIONS

There will be further rationalization and competition for

recycled resins and waste as these processes gain

popularity.

Recycled content standardized

and verifiable content.

EOL options to tackle fossil fuel

reduced dependency and

carbon footprint elimination.

Alternative fuel/energy option.


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Prime Resin MarketSNAPSHOT

Commodity resin markets will continue to react to supply

and demand economics and recycling programs will grow.

Commodity resin markets andproducers are battling

increased feedstock costs and

business rationalization due toglobal competition.

Significant social and economic

drivers will continue to prevail.


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Industry OutlookRECYCLED RESINS

Recycled resins demonstrate a financial cost advantage

and promote environmentally friendly solutions.

Despite slower economic growthrecycled resins will grow in demand

and have a significant cost

advantage over virgin and secondary

commodity resins.

Environmental initiatives will

continue to create demand pull and

promote the use of recycled resins


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Industry OutlookRECYCLED RESINS

Recycled resins have and will continue to carve their own

special niche within the commodity resin market.

Alternative fuels/energy and waste

to energy EOL innovative

technologies are on the rise which

will provide additional outlets and

competition for recycled resinfeedstock.

Reduction of carbon footprint and

recycled content standardization will

continue to favor the growth ofrecycled resins.


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Contact InformationMATHELIN BAY MANAGEMENT TEAM

Phil Karig, Managing Director

Former CPO and VP Procurement, Spartech Corporation.

Email: [email protected]

Bruce Petersen, Chief Procurement Officer

Former VP Materials Management, A. Schulman, Inc., PresidentDiamond Polymers and SPE President.Email:[email protected]

John Denzer, Executive Partner

CEO of The Polyven Group and former Director of Sales for PP at

Formosa Plastics Corporation, U.S.A. and PP Market Manager atMillennium Chemicals (currently LyondellBasell).

Email: [email protected] &[email protected]

This Team has Over 90 Years of Polymer Industry Experience.


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Thank You

Documents

Polyven Recycling Plastics Overview 2011