Barrier Packaging Options for SME s. January Copyright RPC Group All rights reserved

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1 Barrier Packaging Options for SME s January 2013 Copyright RPC Group All rights reserved 1

2 RPC Group: Overview Key Facts Key Key Facts Facts 50 manufacturing plants in 16 countries Circa 7,000 employees Annual sales of circa 1.25 billion Largest European manufacturer utilising all three conversion processes Industry leading innovator Listed on London Stock Exchange Entered the FTSE March

3 RPC Group Overview Corporate History Turnover: Reported Turnover: Analyst expectations 1,400 Number of manufacturing sites Turnover ( m) 1,200 Various smaller acquisitions Superfos acquisition 70 Manufacturing sites 60 1, Acquisition of 11 sites from Rexam / Nampak Acquisition of Wiko division Acquisition of Continental Plastics Europe MBO Flotation RPC UK Growth Phase Mainland European Growth Phase Consolidation Renewed Growth 0 3

4 RPC Group Overview RPC Market Segments Spreads 13% Other food 20% Coffee 6% Sauces 4% Dairy products 6% Long shelf-life 6% Disposables 4% Personal care and cosmetics 13% Other non food 13% Surface coatings 9% Pharmaceutical 3% Automotive 3% Food 59% Non-Food 41% Source: Proforma enlarged Group 2010/11 4

5 RPC Group Overview Conversion Processes Injection Moulding Blow Moulding Thermoforming Complex designs High level decoration High added value Re-closable Narrow neck Pourable High volume Low cost Barrier applications RPC's core capabilities include the three processes which represent over 90% of all rigid plastic manufacturing processes. This is unique among large-scale manufacturers of rigid plastic packaging and allows RPC to offer the widest range of options to customers 5

6 RPC Barrier Packaging 6

7 RPC Corby Started as a brown field site 1985 Workforce: /7 with a 4 shift system BRC and ISO accreditation 1935 Corby started to grow as a steel town. The iron ore was depleted around 40 years later and since then Corby has been the centre for industrial growth RPC Corby 7

8 RPC Barrier Blowmoulding Corby Site 100% Food and Drink market Specialising in High Barrier containers (100% multilayer) BRC/ IOP and ISO 9002 Accredited Regularly audited by large food groups Mars, Heinz, Orkla Brands,.. Wide range of stock and custom mould products

9 Retail Bottles & Jars

10 Foodservice (HORECA)

11 Can and Glass Replacement

12 Stock Containers - from 180ml to 4.25 Litres (5 Kilo)

13 Multi-layer structure Outer layer Polypropylene - gloss Outer tie layer Barrier layer EVOH Inner layer tie layer Regrind Inner layer Polypropylene Excellent Water Vapour Barrier properties (WVTR) High stiffness at the cost of drop performance Good heat resistance Hot filling, pasteurization and retorting, High melting point at 150 C Good transparency and gloss Good contact clarity Good rigidity for hot filling Good organoleptic properties Microwaveable EVOH aroma and flavour preservation EVOH resistance to oils and solvents EVOH it has an affinity to moisture EVOH the ethylene content dictates the barrier performance, the higher the ethylene content the barrier performance decreases and vice versa EVOH as the thickness increases the barrier increases 13

14 Extruder to melt the polymers Hopper Extrusion screw Barrel with 3 heater zones 190oC 195oC 200oC Material is fed into the hopper Rotation Molten material is then forced into the extrusion die head via connecting pipes Extruded melt around 220 C Cooling fans As the plastic pellets travel down the screw the external heat and the intense pressure and friction melts the pellets into a homogeneous melt Feed throat Screw drive electric motor 14

15 Layout of extruders 50m/m dia. 80m/m dia. 30m/m dia. Outer layer Polypropylene Regrind Co- extrusion refers to the extrusion of multiple layers of materials simultaneously. This type of extrusion utilizes the use of two or more extruders to melt and deliver a constant flow of different viscous plastics to a single extrusion head. We use different sizes of extruders (6 in total) depending upon the thickness of the layer and the out-put for the particular size of machine. Each screw is specifically designed for the material it is going to process Outer tie layer 30m/m dia. Barrier layer EVOH 30m/m dia. Inner layer tie layer 60m/m dia. Inner layer Polypropylene 15

16 Extruder to co-extrusion head to parison 50m/m dia. 80m/m dia. 30m/m dia. Outer layer Polypropylene Regrind Outer tie layer 30m/m dia. Barrier layer EVOH 30m/m dia. Connecting feed pipes from extruders to co-extrusion head Inner layer tie layer 60m/m dia. Inner layer Polypropylene 16

17 The Parison Parison 17

18 Blow moulding manufacturing the container 6 bar pressure Parison Blow Mould consists of two halves with water cooling 18

19 Corby Blowmoulding and Barrier Technology 19

20 Closures Comprehensive range of standard closures Leading supplier of closures for both powder and liquid foods Proven track record in technical innovation Dispensing systems Wadding, foiling and assembly Child resistant closures (CRC) 20

21 Sealing induction 21

22 Sealing capless induction sealing 22

23 Conduction barrier films 23

24 Oxygen scavengers 24

25 % Haze measurements 80 H a z e m e a s u r e m e n t % 9.74% 14.4% 15.5% 17.9% 44% 71% % Glass Project Vision Glass PET + 2% calibration calibration SolO2 2% 9.5% oxygen scavenger Metocene PP virgin material in inner and regrind layers Virgin only no regrind Reduced regrind level Standard material structure with regrind 25

26 Project Vision New technology 3 layer co-injection technology (in development) Higher clarity over multi-layer technology Polypropylene and EVOH Bi-axial orientation improves rigidity with less weight Very good gloss Very good drop performance 4 C Injection moulded neck for improved sealing and closure application Improved performance over PET in hot fill and pasteurize applications Cost of jar is high compared to 6 layer multi-layer technology Less flexible with necks and jar sizes (will improve as preform library increases) Investment costs are high due to preform machinery and re-heat machinery required 26

27 Environmental Web page

28 The Comparison The study compared two 400g ambient food cans in the following formats: A tin plated steel food can weighing 47.8g A polypropylene (PP) food can weighing 15.5g with a film seal lid (approx. 1.32g) and a plastic lid (8.5g) The study included the raw materials used, the production of each can and associated parts, transport and final disposal in the waste stream.

29 Assuming an annual delivery of two million cans, switching to a plastic can will save over 200 tonnes of CO e annually. Results The carbon footprint of a plastic can was found to be approximately 51% lower than that of the metal can. 201g CO 2 e per can 98g CO 2 e per can

30 Analysis of results The graph below shows the carbon footprint of each can format split into a number of analysis groups to show which areas have the highest impacts. Carbon Footprint of one plastic can vs. one metal can Plastic Can Raw Materials Processing Transport End of Life Metal Can CO2e (gram s) Method: IPCC 2007 GWP 100a, Impact data sourced from ecoinvent database with the exception of tinplate (BUWAL 250 database)

31 Market Overview Sustainability Substitution Rigid Plastic Packaging Market Suppliers Environment Competitors Barriers to entry Carbon footprint Customers Plastic is the demonstrably more sustainable packaging material on the key measure of carbon footprint. RPC is also able to respond to the increasing availability of post consumer recyclate Use of recycled material Rigid plastic alternatives to glass and metal packaging can significantly reduce the carbon footprint of packaged products and thus sustainability provides a real growth opportunity CO 2 equivalent footprint - production phase Recycling of household plastic packaging has increased rapidly - RPC is responding to this trend by developing innovative solutions that allow our customers to meet their sustainability commitments 518% % increase since 2000/01 RPC 190ml HiPP baby food jar RPC 610ml barrier food jar RPC 5.0 litre plastic paint can 0.058kg CO kg CO 48.7% 2 100% 0.16kg CO kg CO % 54.4% 100% 0.92kg CO kg CO 2 100% Glass equivalent Glass equivalent Metal equivalent 93% 227% Glass Cans Plastics Recycling of household glass, metal and plastic, tonnes 2000/ /10 Source: Defra Source: Denkstatt, 2010, Product Carbon Footprint and Water Demand of RPC Containers Ltd Products 50% rpet 25% rpp 50% rpet 31

32 Reduce Carbon Footprint With Plastics ( Jug it ) A System Designed & Manufactured by 32

33 Thank You Copyright RPC Group All rights reserved 33

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