April 15 & 16, 2004 1

Issue
1 1. Leftover Paint
2 2. Improper Disposal
3 3. Collection
4 4. Sorting
5 5. Managing Containers
6 6. Transportation
7
7. Non-Paint Uses
8 8. Paint Manufacturing
9
9. Sale of Paint with Recycled Content
10
10. Sustainable Financing
Overall
Rank
1
3
2
7
9
10
7
6
5
4
Government
3
7
9
1
6
8
10
4
5
2
Manufacturers
& Associations
1
2
4
6
8
9
3
7
4
10
Retailers
6
4
4
6
3
1
2
8
9
10
Greiner Environmental, Inc.
April 15 & 16, 2004 2

Greiner Environmental, Inc.
April 15 & 16, 2004 3

Greiner Environmental, Inc.
April 15 & 16, 2004 4

• Retail Outlets
– owned by manufacturers
•
Independent Dealers
– Contractor-oriented dealers (similar to the retail outlets)
– hardware stores
– decorator centers
•
Mass Merchants
– Home Depot, Lowe’s, Wal-Mart, etc.
Greiner Environmental, Inc.
April 15 & 16, 2004 5

Contractors: 65% of sales DIYers: 35% of sales
Market Share
Growth Rate
Average Price (paid by channel to manufacturer)
Customer Segment
Greiner Environmental, Inc.
Retail
Outlets
56%
3%
$10
Contractors
~95% sales
Independent
Dealers
26%
-5%
DIY,
Contractors
April 15 & 16, 2004
$12.35
Mass
Merchants
18%
10%
$8.45
DIY
6

North American Architectural Coating Sales
Company
Sherwin-Williams
ICI
Pittsburgh Paint (PPG)
Valspar
Benjamin Moore
Greiner Environmental, Inc.
Market share
25-30%
15%
8%
8%
7%
April 15 & 16, 2004
Company
Sherman Williams
ICI
Duron
PPG
Kelly-Moore
MAB
Williams
Dunn-Edwards
Diamond Vogel
Monarch
Color Wheel
Bruning
Columbia
Johnson
Jones Blair
Valspar
Benjamin Moore
Behr
ACE
TruServ
RustOleum
Zinser
Flecto
Deft
Other
No. Stores
70
50
35
26
21
21
19
0
0
0
0
0
1046
0
0
0
0
2154
660
248
160
150
150
90
70
7

• Assume 35 mil gal of leftover household paint
Does not include contractor, manufacturer, dealer miss-tint, private businesses, and public agencies leftovers.
% Sales
Latex
Oil
Totals (mil gal)
80%
20%
•
Latex Recovery Rate:
Amazon – 50%
Metro – 66%
% Recyclabe into Paint
70%
95%
Estimated
Supply for
Recycled Paint
19.6
6.65
26.25
Paint Recycling Company – 80%
Visions – 70%
Non-Paint
Supply
Estimate
8.4
0.35
8.75
Total (mil gal)
28
7
Greiner Environmental, Inc.
April 15 & 16, 2004 8

• Supply
– 80% of supply from local government
– 20% contractors, homeowners, & retail consumer returns
•
E-Coat:
– minimum 50% (up to 80%) post-consumer paint
– 7-10 colors
•
Roughly 2% of Kelly-Moore sales
Greiner Environmental, Inc.
April 15 & 16, 2004 9

Consolidated Paint
– 55 gal drums (earth tones gray & beige)
Amazon Select™
– six standard colors
– $50 for a 5-gallon container
– Markets: contractors and state and local governments.
– Dunn-Edwards Paint Company sells AEI’s paint under the brand name “Recover” in Arizona, California,
Colorado, Nevada, New Mexico, and Texas.
Greiner Environmental, Inc.
April 15 & 16, 2004 10

• Paint from Metro Oregon as well as surrounding counties
• Sell from a storefront at their manufacturing plant in Oregon City and at a few retail paint locations
•
Pricing based on color and customer
•
Product sold in 5 gallon containers
11 Greiner Environmental, Inc.
April 15 & 16, 2004

Metro Pricing
Customer
Price per 5-gallon pail
Off-White Other Colors
Governments and non-profits $19.00 $12.00
All other customers $30.00 $20.00
MetroPaint 2002 Calendar Year Sales by Customer Type
Customer type Gallons sold Transactions % of total sold
General public
Commercial
Non-Profit
Government
Retailers
Total
50,128
17,583
6,930
3,614
19,081
97,336
4600
780
272
133
162
5,947
51%
18%
7%
4%
20%
100%
Greiner Environmental, Inc.
April 15 & 16, 2004 12

•
Highest demand for white
•
Lower demand for non-whites, especially reds, yellows, and other colors.
•
In reality, some recycled paint manufacturers discount products to achieve sales goals.
Greiner Environmental, Inc.
April 15 & 16, 2004 13

• Estimated government market size : 17M gal/yr
– vs estimated supply of recycled paint of 26.5 M gal/yr
• Current Efforts to stimulate government purchase
– Standards (e.g., MN)
– Contracting mechanisms (e.g., U.S. GSA, CA & MN)
– Minimum purchase requirements (e.g., CA)
•
Barriers to government purchase:
– Concern over recycled paint quality,
– Established relationships between purchasing agents and retailers
– Lack of awareness of availability and quality
Greiner Environmental, Inc.
April 15 & 16, 2004 14

• Apply 65% of all architectural coatings
•
Barriers
– Performance guarantees
– Lack of brand names
(which customers sometimes require)
– Color matching & sheen
– Contractor incentives
– Contractor or “Professional” Grade Formulations
– Excellent application properties
– Lower cost raw materials
– mid-range performance
Greiner Environmental, Inc.
April 15 & 16, 2004 15

Purchasing
•
Purchase at mass merchants, independent dealers, and retail outlets.
•
Often the main target of high-recycled content paint.
Barriers
• color matching
• Sheen
• poor quality perception.
Greiner Environmental, Inc.
April 15 & 16, 2004 16

Peinture Récupérée Du Québec – Laurentide
Resource
•
Exports 40% of production (both oil & latex)
• regular customers include Cuba, Haiti, Angola, and Guinea
Hotz Environmental
•
Recycles latex and oil-based paint
•
100% of oil-based paint is exported
Greiner Environmental, Inc.
April 15 & 16, 2004 17

Manufacturers have two main product liability concerns with selling recycled content paint
• hazards assessment
• ingredients disclosure on MSDS sheets
Greiner Environmental, Inc.
April 15 & 16, 2004 18

Strategies (From Action Plan)
1. Develop government accountability & leadership
– Establish purchasing goals, procurement guidelines, and incentive schemes
– Develop minimum content recycled paint specifications
– Establish purchase directives, tracking and reporting mechanisms
Greiner Environmental, Inc.
April 15 & 16, 2004 19

Strategies (From Action Plan)
1. Develop government accountability & leadership (cont.)
–
Promote demonstration programs, vendor expos, face-to-face events to improve relationships between procurement officials and manufacturers
– Review government “green purchasing” specifications
–
Develop a program for high volume applications
(e.g., fences, warehouses, corrections facilities, and storage centers)
Greiner Environmental, Inc.
April 15 & 16, 2004 20

Strategies (From Action Plan)
2. Develop a recycled paint standard
– ASTM-type standard to provide greater confidence in “recycled paint”
– Specify performance characteristics (e.g., hiding power, wear resistance)
– Could differentiate interior and exterior applications
Greiner Environmental, Inc.
April 15 & 16, 2004 21

Strategies (From Action Plan)
3. Develop a strong brand identity for recycled paint
– Logo & certification
– Market as “reblended”
4. Address product liability issues
– hazard assessment, material safety data sheets, and labels
Greiner Environmental, Inc.
April 15 & 16, 2004 22

Greiner Environmental, Inc.
April 15 & 16, 2004 23

•
Leftover paint as feedstock in paint manufacturing
•
Uneven supply for various geographic markets
Greiner Environmental, Inc.
April 15 & 16, 2004 24

Strategies (From Action Plan)
1. Blend high quality latex with virgin ingredients
– Resell high-quality leftover paint to manufacturers for blending with virgin ingredients
– Remanufacture own recycled paint into new paint products (e.g., Benjamin Moore)
– Do not market resulting product as “recycledcontent” paint
– Pilot projects to experiment with private-public partnerships aimed at collecting and transporting high quality leftover paint
Greiner Environmental, Inc.
April 15 & 16, 2004 25

Strategies (From Action Plan)
2. Develop more paint recycling and reblending capacity
– Identify market gaps (e.g., latex recycler in the
Northeast) or U.S. oil/alkyd recycler
– Provide startup capital – via grants, lowinterest loans or other incentives – for new recycled paint manufacturing capacity
Greiner Environmental, Inc.
April 15 & 16, 2004 26

Greiner Environmental, Inc.
April 15 & 16, 2004 27

What types of paint cannot be readily recycled into paint?
– Partially solidified paints (latex & oil)
– Paints contaminated with mildew or bacterial growth (latex)
– Non-white paints (latex & alkyd)
What markets are there for this material?
– Fuel Blending (oil)
– Concrete specialty concrete, roofing materials, caulking compounds (latex)
– Alternative daily landfill cover (latex)
Greiner Environmental, Inc.
April 15 & 16, 2004 28

• Assume 35 mil gal of leftover household paint
Does not include contractor, manufacturer, dealer miss-tint, private businesses, and public agencies leftovers.
Latex
Oil
% Sales
Totals (mil gal)
80%
20%
% Recyclabe into Paint
70%
95%
Estimated
Supply for
Recycled Paint
19.6
6.65
26.25
Non-Paint
Supply
Estimate
8.4
0.35
8.75
Total (mil gal)
28
7
Greiner Environmental, Inc.
April 15 & 16, 2004 29

•
Need for research & innovations for new technology
•
Weak market, over supply
Greiner Environmental, Inc.
April 15 & 16, 2004 30

Strategies (From Action Plan)
1. Develop other markets for leftover latex paint
•
Pigmenting plastic – Rutgers University research
• Alternative Landfill Daily Cover
• RFP on research & innovation for reuse
2. Develop other markets for leftover oilbased paint
• Most oil is sent for fuel blending
• Research other alternatives
Greiner Environmental, Inc.
April 15 & 16, 2004 31