A Global Look at Plastics:

1

• A Global Look at Plastics
• Quantities, Uses, and Benefits
• Pete Grande
• President of Command Packaging
• September 7, 2005
•  

2
Presentation Outline

• The Plastics Industry
• Recognizes there is a litter problem
• Understands there is limited reliable data
  available
• Agrees that standards need to be developed for
  sampling protocol/procedures
• Desires to communicate better, the significance
  of our industry
• Committed to working in partnership to find
  solutions

3
Plastics Industry is Pleased to be a Partner in
This Pioneering Effort

• Appreciate the cooperative spirit of working and
  learning together
• Industry
• Government
• Regulators
• Environmentalists

4
Together we can Break New Ground

• Challenges facing Research Efforts
• Limited amount of prior reliable data available
  for evaluation
• No standards exist for sampling
  protocol/procedures
• Limited sampling has been done to date
• Record rainfall this past year may influence
  findings

5
A Rivers to Sea Glossary

• AMRF Algalita Marine Research Foundation
• APC American Plastics Council
• CFECA California Film Extruders and
  Converters Association
• SPI The Society of the Plastics Industry, Inc.

6
Recent Developments
2003 - A Call to Action!
AMRF alerted local industry that significant
amounts of plastic pellets (resin) were being
found in the ocean
7
CFECA, SPI and Algalita Partnership
Steps taken by industry

• Educated Algalita about resin pellets and the
  complexity of the industry
• SPI and CFECA wrote introduction letters to help
  Algalita visit plastics processors in order to
  help facilitate sampling process and determine
  whether pellet spills were coming from any local
  processors

8
CFECA, SPI and Algalita Partnership
Steps taken by industry cont

• Industry began grassroots programs to address
  environmental issues.
• Curbside recycling pilot program in San Juan
  Capistrano.
• Environmentally Preferred Rating program (EPR).
• Participation by key industry leaders with L.A.
  City Council on LA River Plastic Litter task
  force .

9
CFECA, SPI and Algalita Partnership
Steps taken by industry cont

• SPI and industry leaders completely updated,
  re-emphasized, and have ardently promoted the
  Operation Clean Sweep (OCS) program in order to
  reduce and eliminate industrial pellet loss.

10

• Its a great start.

11

• But, its only the beginning !

12
How Did We Get Here?Plastics Enormous Benefits

• Plastics products improve our daily lives and
  have made vast
• improvements in areas such as
• Medicine - helping us all live longer, healthier
  lives
• Electronics - information, communication, and
  entertainment
• Building and Construction - durability,
  aesthetics, and high performance
• Transportation - Automotive, Aerospace, Space
  Exploration
• Personal protection - children, athletes, police
  and firefighters
• Innovative packaging - freshness, storage
  stability, and protection from bacteria
• Recyclability and reuse (SPI created the
  international recycling symbols/numbers to
  facilitate recycling)

13
Benefits of Plastics Case Study Transportation

• During the oil crisis in the 70s, automakers
  found that plastics made cars more energy
  efficient by reducing weight.
• Plastics began finding their way into automobile
  components (bumpers, fenders, doors, etc.)
• Plastics were also used for their
• Durability
• Corrosion Resistance
• Toughness
• Resiliency
• Lightweight

14
Benefits of Plastics Transportation cont

• Plastics reduced the weight of the average
  passenger car built in 1988 by 145 pounds.
• That saves millions of gallons of gas each year
  and will save the energy equivalent of 21 million
  barrels of oil over the average lifetime of those
  cars.

15
Benefits of Plastics Transportation cont
16
Benefits of Plastics Transportation cont
17
U.S. Plastic Resins Growth 2004

• Production grew in 2004 to 115.1 billion pounds
• An increase of 8.1 percent over 2003
• Sales and captive use rose 6.9 percent, the
  highest growth rate since 1996, reaching 113.8
  billion pounds
• (Source American Plastics Council)

18
Plastics is a complex industry

• Processors (four main processing methods)
• Injection Molding
• Extrusion
• Blow Molding
• Thermoforming
• Equipment Suppliers
• Raw Material Suppliers

19
Range of Products (defined by governments NAICS
codes)

• Plastics Bags
• Plastic Packaging Film and Sheet
• Non-packaging Film and Sheet
• Plastics Profile Shapes
• Plastics Pipe Pipe Fittings
• Laminated Plate, Sheet and Shape

• Polystyrene Foam Products
• Urethane and Other Foam Products
• Plastic Bottles
• Plastic Plumbing Fixtures
• Resilient Floor Covering
• Plastics Products, Not Classified Elsewhere
• (Source Probe Economics, Inc. 2004)

20
Todays Reality

• Plastics products have become an integral part of
  all our lives, and play an
• irreplaceable role in our day-to-day
• activities.

21
Comparison with Other IndustriesUnited States

• Plastics industry is the nations 4th largest
• manufacturing industry (shipments)
• Motor Vehicles and Equipment
• Petroleum Refining
• Electronic Components and Accessories
• Plastics
• (Source Probe Economics, Inc. 2004)

22
Scope of the Plastics Industry (2002) United
States

• The U.S. plastics industry employed more than 1.4
  million people
• Another 772,000 persons were employed by upstream
  industries that supplied the plastics industry
• Total of 2.2 million workers about 2 percent of
  the U.S. workforce
• (Source Probe Economics, Inc. 2004)

23
Scope of the Plastics Industry (2002) United
States

• Nearly 20,000 plastics industry establishments
  generated approximately 310 billion in shipments
• Another 83 billion was generated by upstream,
  supplying industries
• Total annual shipments from plastics activity to
  393 billion
• (Source Probe Economics, Inc. 2004)

24
Scope of the Plastics Industry (2002) California

• Plastics Industry Jobs in California 137,809.
  California is ranked first in the country in
  plastics employment.
• Plastics Industry Shipment in California 26.8
  billion. California ranked second in the country
  in plastics shipments.
• (Source Probe Economics, Inc. 2004)

25
Plastics Global ImportanceImport and Export

• Plastics resin and plastic finished products are
  imported and exported at a significant level
  across the world, via the oceans and by other
  means
• Canada, Mexico, other Latin America and China
  account for dominant percentages of U.S. plastics
  industry exports and imports.
• (Source Probe Economics, Inc. 2004)

26
Future Growth of Plastics(per capita consumption
2001-2010)

• 2001 2010
• North America 223 lbs. 326 lbs.
• Latin America 44 lbs. 68 lbs.
• Western Europe 208 lbs. 300 lbs.
• Eastern Europe 26 lbs. 53 lbs.
• Africa/Middle East 18 lbs. 22 lbs.
• Japan 194 lbs. 256 lbs.
• Southeast Asia 29 lbs. 53 lbs.
• Less than 2 of a barrel of crude oil is used
  in the production of plastics.
• (Source BASF AG)

27
Energy Resources Plastics
28
In Closing

• We hope that many good things will come from
• this conference, including
• Agreeing that more research and scientific data
  is needed
• Identifying topics and research that need to be
  addressed
• Continuing to grow these relationships that have
  been built on trust and candor

29

• The plastics industry is united in our efforts to
  help stop marine debris in all forms
• We will continue to do our part as industry to
  work towards achieving OCSs ultimate goal of
  Zero Pellet Loss

30

• Thank you