Ardagh Group Glass. Introduction to Ardagh Group, Glass Wilson, NC 10/20/2016
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1 Ardagh Group Glass Introduction to Ardagh Group, Glass Wilson, NC 10/20/2016 1
2 Global Footprint Ardagh Group operates globally through two business segments; Glass and Metal packaging. In both segments, the Group has secured leading positions in the key end markets it serves. Americas Europe Asia Pacific Metal 18 Metal 43 Metal 4 Glass 15 Glass 20
3 Who is Ardagh Group, Glass North America? Ardagh Group, Glass North America manufactures glass packaging for the leading brands in the US beer, beverage, spirits and wine markets in a wide variety of award-winning designs, shapes and sizes 5,100 employees 15 glass manufacturing facilities; 1 distribution center (Fairfield, CA) 10 billion bottles and jars manufactured annually
4 Ardagh Group, Glass North America SEATTLE, WA PORT ALLEGANY, PA MILFORD, MA BURLINGTON, WI DUNKIRK, IN DOLTON, IL LINCOLN, IL BRIDGETON, NJ MADERA, CA PEVELY, MO WINCHESTER, IN SAPULPA, OK RUSTON, LA HENDERSON, NC WILSON, NC GLASS PRODUCTION SITES
5 Wilson Plant Overview Overview Facility Pull up to 812 metric tons/day Produced million bottles in 2014 Facility 53,507 sq. meters / 575,976 sq. feet Warehouse : 19,197 sq meters / 206,640 sq feet Manufacturing: 23,295 sq. meters / 250,760 sq. feet Office/Basement/Furnace Buildings: 11,015 sq. meters / 118,576 sq. feet Plant Statistics Two Oxy-Fuel furnaces with electric boost Amber & Flint 6 Production Lines / 172 cavities Loop Design in Cold end 6 bulk palletizers and 6 case palletizers Reselect and transfer capabilities 41 Salaried Employees 271 Unionized Hourly Employees History 1977: Began construction by Kerr Glass Manufacturing 1983: Acquired by Foster-Forbes (National Can) 1995: Ball and Saint-Gobain formed Ball-Foster Glass Container Corp. (including Foster-Forbes) as a joint venture 1996: Converted furnaces to oxygen fuel 2000: Name changed to Saint-Gobain Containers Inc. 2001: Achieved Select Status designation from AB 2001: Installed new load center 2010: Verallia brand name created. 2013: Received ISO certification 2014: Acquired by Ardagh Group.
6 Henderson Plant Overview Overview Facility Diverse business mix Excellent customer portfolio Flexible operations Full environmental compliance FSSC Recertification June 2016 ISO Recertification September 2016 Statistics Nearly 72 acres of property 756,000 Total building square footage 430,080 square footage Warehouse 286 employees 38 salary 248 represented Two furnaces Furnace Tons per day (Flint or Color) Furnace Tons per day (Flint only) Est sales $97 million / 128,045 tons History 1960 Built as Laurens 1962 Laurens acquired Indian Head 1975 TBG acquired Indian Head 1983 Incon Packaging Acquired Indian Head 1987 Ball-Incon Joint Venture Ball/TBG Ball-Incon wholly owned by Ball 1994 Renamed Ball Glass Co 1995 Saint-Gobain/Ball joint venture 1996 BFG wholly owned by SGC 2000 Renamed SGCI 2010 Renamed Verallia North America 2014 Ardagh Group acquired SGCI
7 Glass Bottle 101 It takes about 10 seconds to create a beer bottle. Production speeds may be as fast as 700 containers per minute. Recycling just one glass bottle saves enough energy to power a television for 20 minutes. Six tons of recycled, remelted container glass equals one ton of carbon dioxide / greenhouse gas reduced
8 Glass: Why Are We Focused on Increasing Cullet? It s the right thing to do for our planet and it s good for business! 100% endlessly recyclable A 10% increase in cullet reduces: Energy requirements by 3-4% Particulates by 8% Nitrogen Oxide by 4% Sulfur Oxides by 10% Extends furnace life Provides a hedge against high utility costs Saves natural resources One ton of cullet saves approximately tons of the earth s natural resources Reduces energy for mining and transportation For every six tons of recycled glass used, one ton of CO 2 is reduced In 2014, we utilized enough cullet to save nearly 14.5 million cubic feet of landfill space. These recycled containers laid end-to-end would circle the earth more than 16 times or enough to reach the moon and return halfway
9 High Quality Cullet Is Critical to Our Operations Wilson plant receives 100% of it s Cullet from SMI. Up to 50% of Wilson s batch mix is quality cullet.
10 Points of Interest Cullet specifications Prefer 5/8 pieces. Provides optimal melting and a high level of contamination control Required cullet color is dependent on product mix Cullet must be processed by an authorized cullet supplier Suppliers must deliver to Ardagh specifications (color, size, etc.) Suppliers are subject to routine audits Cullet is verified at the plant through established Ardagh quality control standards and protocol The national cullet market growth on average is relatively flat, but where opportunities exist, Ardagh is pursuing Ardagh is actively protecting current container deposit laws Federal, state and local governments would do well to keep glass in their collection streams as a beneficial feedstock to glass container manufacturers and support value added recycling efforts
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