INTEGRATED PACKAGING AUSTRALIA P/L AUSTRALIAN PACKAGING COVENANT ACTION PLAN 2010-2015 Australian Packaging Covenant - Action Plan July 2010 - June 2015 1 DETAILS OF THE ORGANISATION Integrated Packaging Australia Pty Ltd is a specialist manufacturer of plastic stretch/non stretch material handling films and associated equipment for the Industrial and Agricultural markets. Since the company’s establishment in 1982, the Integrated Packaging Group (IPG), a privately run group of businesses and Australian owned company, it has grown to become the largest local manufacturing specialist of plastic stretch film and associated equipment in Australia. As market leader in the manufacture of industrial stretch and agricultural wrap films, IPG is committed to dealing with waste plastic in environmentally appropriate ways. In August 2008 IPG completed the acquisition of the Amcor Flexibles Kewdale in Perth – a business that manufactures Cast stretch film and blown stretch, shrink and agriculture crop propagation films. In February 2010 IPG completed a further acquisition of Ausplaztik – now Integrated Recycling - a business that recycles waste polyethylene into a range of timber substitute products such as bollards, posts, stakes, decking, garden and park furniture, utilizing its own patented technology. The acquisition will provide IPG, its customers, and the wider industry, with an ability to recycle waste plastic, and in particular, silage and mulch films, to lessen the impact on landfills whilst producing a useful range of widely accepted timber substitute products. Today IPG is an international market and manufacturing leader that employs around 300 people, owns several world first patents and services over 3,000 customers worldwide. It has an annual sales turnover of around A$150 million. Proudly producing most of their films in Melbourne (AUS), Perth (AUS) and Auckland (NZ), IPG services the industrial and agricultural markets. The IPG industrial and agricultural product range is traded under the following registered names: - IPEX – machine grade blown stretch film, - IPEX GOLD – premium grade blown stretch film - JACKWRAP BLOWN – machine grade blown stretch film - JACKWRAP PREMIUM CAST – machine grade cast stretch film - PREMIUM PLUS – premium cast grade stretch film - EX-CELL – pre-stretch blown film - MAXIWRAP – pre-stretch cast stretch hand film - ENDUROWRAP – pre-stretch Silage wrap film - SILAWRAP PLUS – pre-stretch Silage premium wrap film - SILAWRAP – blown Silage wrap stretch film - X-TEND – degradable crop propagation pre-stretch film - X-PECT – conventional blown mulch film - X-PECT PLUS – pre-stretch blown mulch film - CORTEX – premium bundle shrink wrap - SILAFARM – agricultural products including stretch film, twine, netting, grain bags and silage pit covers We have sales and distribution offices located in Victoria, South Australia, Tasmania, West Australia, New South Wales and Queensland. IPG offers a specialist range of polyethylene films for shrink, stretch hood and stretch pallet wrap applications as well as an extensive range of agricultural crop packaging products (bale silage, crop mulches, grain storage, pit covers, netting and twine) under the Silafarm Product Family brand. Integrated Packaging also offers a Australian Packaging Covenant - Action Plan July 2010 - June 2015 2 full range of stretch-wrapping equipment including the Lantech range of machines from the USA. A signatory of this new Australian Packaging Covenant for sustainable packaging, a member of APMA (Australian Packaging Machinery Association) and ISO9001 Quality Accredited, IPG is the only company in Australia that manufactures and distributes both stretch film and stretch wrapping machinery locally. For the last nine years, one of IPG's chief commercial focuses has been the development and commercialisation of advanced technology of thin films (for the industrial and agricultural market sectors) such as those using the IPG patented Altex™ process to be a one significant solution to reducing waste going to landfill. Altex™ is a globally unique cold orientation process applicable to a large proportion of flexible films, not only stretch films. It is different from all other stretching processes and is not available to other film manufacturers except through licensees. Thinner films lower the volume of plastic required to carry out its function compared to conventional films. These pre-stretched films have similar performance characteristics to thicker conventional films, for which they are a direct replacement however they represent a down-gauging of approximately 40 per cent, on average. If the Australian market for stretch films were converted to pre-stretch films, the amount of stretch film required by the market would be reduced by approximately 10,000 tonnes. In addition, IPG is currently engaged in a CRC for Polymers research program aimed at the broader use of degradable films across all applications and aims to commercialise products in the industrial and agricultural sectors using this new technology. This now is our New Action Plan for 2010-2015 in the new Australian Packaging Covenant. CONTACT Mr David Jesaveluk, IPG General Manager of Operations, is responsible for the implementation of this Action Plan (July 2010 – June 2015) and for reporting on its progress. Mr Jesaveluk's contact details are: Address: Phone: Facsimile: Email: 34-36 Lakeside Avenue, Reservoir, Victoria, 3073 (03)-9474 4211 (03)-9474 5238 djesaveluk@ipstretch.com TIMEFRAME AND REPORTING This Action Plan covers a timeframe of 5 years. Its progress report will be submitted to the Covenant Secretariat by October 31st of each subsequent year. FINANCIAL CONTRIBUTIONS Integrated Packaging Group's financial contribution to the Australian Packaging Covenant Fund for the year 2010/11 has been met. Australian Packaging Covenant - Action Plan July 2010 - June 2015 3 INTEGRATED PACKAGING AUSTRALIA PTY LTD'S COMMITMENTS TO ACTION Since becoming a signatory to the National Packaging Covenant in July 2003, a number of key achievements have been made. Reduction of internal plant waste going to landfill, with all PE waste being recycled internally or externally. Introduction of cardboard, Paper and steel drum collection for recycling, with local suppliers. Reduction of amount of cardboard packaging used for final product packaging (reduction of board grades, increased recycle content and elimination of boxes). Introduction of “recycle” symbol on labelling Internal reuse of cardboard boxes and cardboard tubes. Pre-stretch films now represent over 30% of domestic sales, which is equivalent to reducing stretch film use by over 3,000 tonnes (based on 2010 results). Integrated Packaging Australia Pty Ltd's specific commitments to action, during the period July 2010 to 30 June 2015, are set out in the accompanying table. In summary, the actions in this plan are to: Review all packaging design against the Sustainable Packaging Guidelines (SPG), The SPG will be use in all future packaging design Increase the use of “down gauged, pre-stretched” products, Commercialise a viable degradable crop film, Reduce current packaging use in and out by down gauging, elimination or replacement, Commence a program to recycle or reuse post consumer polyethylene film products; and Recycle or reuse packaging materials that are currently disposed of into bins. Australian Packaging Covenant - Action Plan July 2010 - June 2015 4 ACTION PLAN 2010 - 2015 ACTION RESPONSIBILITY TIMEFRAME TARGET RESULTS GOAL 1 – Design: Optimise packaging to use resources efficiently and reduce environmental impact without compromising product quality and safety KPI 1: Proportion of signatories in the supply chain implementing the SPG for design or procurement of packaging Implement and Sales and Marketing. formalise the SPG and integrate into the IPG management system September 2011 Review all Sales & Marketing December 2012 product groups Manager using the SPG Technical Manager Formalised & communicated to all staff Review product groups SKU’s all film of new to the Supply Chain Manager Use the SPG Technical Department when designing Sales Manager new products October 2011 All products undergo review Introduce Technical Manager commercial Sales & Marketing quantities of degradable films July 2012 3 commercial grade of films that replace existing PE films Review paper & Business Development December 2014 board packaging Manager and replace with I.R. recycled P.E. product Australian Packaging Covenant - Action Plan July 2010 - June 2015 Replace least 70% at 5 ACTION RESPONSIBILITY TIMEFRAME TARGET RESULTS GOAL 2 – Recycling: the efficient collection and recycling of packaging KPI 3: Proportion of signatories with on-site recovery systems for recycling used packaging KPI 4: Proportion of signatories with a policy to buy products made from recycled packaging Communicate to Operations Manager staff on recycled policy and set up recycled stations at all plants December 2011 All IPG staff Recover waste PE & EPS plastic and recycle into wood replacement products – I.R. 2010 - 2015 300T – 2010 General Manager I.R. 600T – 2011 Business Development Manager 1200T – 2012 Report progress each year 1500T – 2013 2000T – 2015 Paper – 70% Recover waste Operations Manager products (paper, Production Manager metals and plastics) on site and send for recycling July 2015 Develop a buy QA Manager recycled policy and implement – incorporate into IPG Management System December 2011 Purchases of Planning Manager paper board products used in production to be made from recycled materials July 2013 All paper board products – see above Introduce plastic Sales Managers pallets, made Operations Manager from waste plastic products, Technical Manager for palletising of finished product May 2013 Convert all wooden pallets (non Chep) to recycled plastic Steel – 90% Progress data reported each year Plastic (excluding production waste) – 50% Suppliers these groups - Australian Packaging Covenant - Action Plan July 2010 - June 2015 of item Boxes Bags for packaging Pallets Cores Office Paper 6 ACTION RESPONSIBILITY Introduce plastic Operations Manager core/tubes, Technical Manager made from waste plastic Sales Managers products, for winding of stretch film products TIMEFRAME TARGET December 2012 Convert 80% of the 50mm cardboard cores into recycled plastic. RESULTS GOAL 3 – Product Stewardship – a demonstrated commitment to product stewardship by the supply chain and the other signatories KPI 6: Proportion of signatories that have a formal process for working with others to improve design and recycling of packaging KPI 7: Proportion of signatories demonstrating other product stewardship outcomes Adopt SPG principles to reduce stretch film through pre-stretch products Sales & Marketing Jul 2015 Increase prestretch sales by 5% year on year Introduce Sales Managers take/buy back Distribution Manager of packaging materials July 2012 Recover 30% of plastic cores and 30% of plastic pallets. Signing up to General Manager – IR the GM of Operations Sustainability Framework Programme with PACIA. July 2011 Action plan for framework to be developed by December 2011 Technical Manager Business Development Manager Australian Packaging Covenant - Action Plan July 2010 - June 2015 7 SIGNATORY COMMITTMENT AND ENDORSEMENT The Australian Packaging Covenant Action Plan for the Year 2010 – 2015 is endorsed by John Cerini, C.E.O. of the Integrated Packaging Group. Australian Packaging Covenant - Action Plan July 2010 - June 2015 8