UNITED DMS of Tennessee, LLC, a United Resource Recovery Corp Company

1
UNITED DMS of Tennessee, LLC, a United Resource
Recovery Corp Company
Boosting Recycling in Tennessee
2
UNITED RESOURCE RECOVERY CORPORATION

• Develops PET Bottle to Bottle recycling
  technology
• Have 8 plants around the world utilizing URRC
  process for Bottle to Bottle Recycling of PET
• Have invested in IRG. They are taking low value
  non recylable plastics and making a replacement
  fuel for Coal Coke in the steel industry

3
UDMS COMMITMENT

• Founded in 1988
• URRC Acquires DMS 2005
• JV Purchase Gemark Film Recovery Assets 2011
• Installing Thermo-Reduction Units 2012

4
UDMS Commitment

• The largest recycler of X-ray film in the US.
• 3 Plants Knoxville, Dandridge Exeter, PA
• Recycle 30 million pounds per year of silver
  bearing materials
• Employ approximately 55 people

5
UDMS Commitment

• We are a secure document destruction company
• We are NAID certified
• We source our material internationally
• We will be upgrading the value of the PET flake

6
Plastic Recycling Industry
7
Industry Commitment

• PET HDPE continues to expand recycling capacity
  even though supply is not keeping up
• 90 plus of the PET HDPE recycling capacity is
  in the Southeast
• 2 end users of Pet are in Tennessee

8
Understand The Sustainability Factor

• There is a sea change in attitudes to create a
  more sustainable world.
• Wal-Mart
• Energy availability
• Global warming
• Carbon foot print
• Scarce commodities
• Pressures from Global Growth

9
What does This Mean to You ?

• In total and every case the most frequently
  mentioned answer is RECYCLING.
• You will see increasing demand
• You will see increasing Value
• You will have to opportunity to deliver

10
We are sending moneyto the landfill
Material Recycling Rate Value of Unrecovered
Paper 57 3.1 Billion
Aluminum Cans 55 1.3 Billion
Plastic Bottles 29 HDPE, 29 PET 1.6 Billion
Steel Cans 65 0.4 Billion
Glass Bottles 28 0.1 Billion
Total 6.5 Billion
11
The Market Supply Situation

• PET baled bottle supply is not keeping up with
  Market demand
• PET bales collected in 2010 1.557 billion
  pounds
• 719.6 mm pounds exported
• 775.9 mm pounds for US Reclaimers
• 61.7 mm pounds are component of mixed bales
  exported

12
PET
13
The Market Supply Situation

• HDPE baled bottle supply is not keeping up with
  Market demand
• HDPE Cleaning Capacity 1,006 mm lbs
• HDPE bales collected in 2010 984 million pounds
• 197 mm pounds exported
• 787 mm pounds for US Reclaimers

14
Understanding Pricing

• Recycling is a substitution business.
• The commodity cannot sustain net pricing
  different from the next choice for long.
• Recycling is a matter of freight.
• Proximity to market and full loads matter.
• Recycling is not the trash business
• Quality in terms of Yield is money

15
Understanding Your Market

• Understand the economics of recycling as your
  municipality or county may not.
• If you use a middleman understand if he/she
  provides value.
• Meet your recycled plastics processors to help
  you make the case to expand markets and improve
  value.
• Find Them at www.plasticsrecycling.org

16
Understand How to Drive Supply

• SMART legislation Save Money And Recycle Trash
  ( aka PAYT)
• Tipping fees to fund infrastructure
• Contact Recycle Bank to drive curbside
  participation.
• Develop Grass Roots Support (such as SERDC) to
  drive incentive based programs

17
End Use Demand

• Bottle to Bottle demand is extremely strong.
• Thermoform industry has very strong demand for
  FDA PCR
• Domestic Fiber demand may start to strengthen due
  to the demand by major retailers for PCR content.

18
Disclaimer

• Any resemblance to real persons, living or dead,
  is purely coincidental. Some assembly required.
  Batteries not included. No warranty is made as
  to the accuracy of any prediction, opinion or
  conclusion. Contents may settle during shipping.
  Use only as directed. No other warranty
  expressed or implied. Do not use while driving a
  motor vehicle. No trans-fats. This is not an
  offer to sell or buy securities. Apply only to
  affected area. May be too violent for some
  viewers. For recreational use only. If
  condition persists, see your physician. Freshest
  if consumed before date on the carton. No
  postage necessary if mailed in Canada. For
  off-road use only. Colors may fade. One size
  fits all. Many suitcases look alike.

19
Questions?
20
Contact Information

• Steve Carreras
• scarreras_at_uniteddms.com
• 865-637-2560 ext 205