Mid America Paper Recycling Volume 1, Issue #2

MID AMERICA PAPER RECYCLING ISSUE 2 VOL. 1

SMARTER SUPPLY CHAINS FOR PAPER MILLS. PG.14

HOW DON GAINES, CEO GROWS WEALTH FROM WASTE. PG. 6

Insights On Mills gauging inbound loads. PG.10 Mid America’s Perspective. PG.13

KEEPING YOUR FACILITIES SAFE. PG.8

DUST HAZARD ANALYSIS. PG.4

LETTER FROM THE PRESIDENT

The New Normal Welcome to our second issue of the “Waste Into Wealth” newsletter. Who would have thought in 2020 that we’d all be immersed in a global health crisis?

Amid the COVID-19 pandemic, we’re experiencing unprecedented challenges to the health and safety of our families, friends, businesses, and the economy, which is changing how we live and work together. I’m hoping by the time you read this, things really start returning to business as usual. But we want you to know that all of us at Mid America Paper Recycling are committed to helping you and our communities navigate this difficult time now and going forward.

We look forward to serving you in better times ahead.

This is our “new normal,” and we are working smart to provide the products and services our customers and suppliers depend on while being mindful of the health and safety of our customers, employees, and communities. We appreciate their continued partnership, as well as their understanding of the measures we have taken to serve them safely and responsibly.

This is a year of action, reaction and opportunities for U.S. paper mills and the recyclers and recycling service providers they work with. The pages of this second newsletter will show you how

and our team looks out for one another.

We issue and regularly update safety documents for suppliers, customers, and our internal organization to review, including the safety messages from the Centers for Disease Control and Prevention (CDC) about the COVID-19 pandemic. There are ideas to consider on the plant floor, in shipping and the office and in other work areas.

we’re growing the worth of your fiber recycling waste, with insights and shared experiences from our chief executive officer, Don Gaines, to the perspectives of the paper mills, which include what it takes to meet their tonnage needs. We also examine the quality of tonnage our mill customers expect and won’t accept, and the type of OCC they require. They also tell us what they deal with in terms of material contamination.

We will review how to strengthen and streamline the supply chain during this time of increasing demands for corporate environmental sustainability. And in these challenging times, safety tips have never been more critical to operating a business. We’re going to share our tips with you. MAPR makes safety a priority,

Here’s one safety issue no one thinks about: Dust poses significant fire dangers. Our “Did You Know?” feature examines the dust hazards that can enter a manufacturing operation. The National Fire Protection Association has issued a deadline requiring manufacturers to complete a dust hazard analysis. We look at what’s required and what’s involved.

Even during these difficult times, we are seeing positive signs for better tomorrows. We are focused on action and working with you to make you even more successful. We hope you enjoy our second issue, which offers plenty to read, review and contemplate.

Stay safe,

Paul Pirkle President of Mid America Paper Recycling

Waste Into Wealth is published three times per year by Mid America Paper Recycling info@midamericapaper.com Phone: 773-890-5454 Don Gaines, CEO: dgaines@midamericapaper.com Paul Pirkle, President: ppirkle@midamericapaper.com Tom Surdyk, Executive VP: tsurdyk@midamericapaper.com Lindsey Villanueva, Office Manager: lvillanueva@midamericapaper.com 2

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“Adapting to change can be difficult.

Helping to make [something] run as smoothly as possible makes customers happy.”

– Alan Surdyk, Plant manager, WOW 2/19/2020

“The market is a struggle, and there are challenges every day, but overcoming challenges is why we all have jobs. We can get down about why something is difficult, but we should be celebrating the fact that we have the chance to demonstrate our ability to help others reach their goals.”

— Paul Pirkle, WOW 12/3/19

“When markets are down and pricing isn’t strong, finding other ways to make customers happy is critical. If it’s not pricing, customers at least expect strong service, and they still expect you to meet their needs everywhere else.”

“Thank you all for what you have done, what you are doing, and what you will do to make Mid America Paper Recycling an exemplary company for service and attention to the details.”

— Paul Pirkle, President, WOW 3/19/2020

– Alan Surdyk, Plant manager, WOW 2/19/2020

To inspire, encourage, inform, and jumpstart the morning.

“It’s the little things that add up to the big things.”

— Paul Pirkle, President, WOW 3/5/2020

midamericapaper.com

Intra-company communication and a strong corporate culture are important at Mid America Paper Recycling. Each morning, MAPR issues a daily message called WOW (We WOW; we win!), reinforcing its mission and core values. WOWs also provide company news and share behaviors that can benefit customers and suppliers. The excerpts here are from some of the latest messages that reflect MAPR’s insights and exceptional service.

“We celebrate the good and we correct the bad, and work every day towards WOW.” — Paul Pirkle, President, WOW 3/19/2020

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How much dust content enters your operation and how dangerous is it?

E

valuating combustible dust hazards is a must, according to the National Fire Protection Association (NFPA). You’ll breathe easier and keep employees safe conducting an analysis, which determines the risks of potentially combustible dust that can cause fire and explosion hazards.

No one wants more air pollution.

Especially if it’s in the form of dust present in the facility where they work. Due to a growing number of catastrophic fires and explosions caused by combustible dust in the last decade, the Occupational Safety and Health Administration (OSHA) has recognized combustible dust as a hazard.

Did you know that facilities had a Sept. 7, 2020 deadline to comply with the updated Standard 652, a requirement set by the NFPA? There is evidence that many factories and production facilities handling combustible dusts are unaware of the hazards. Therefore, the NFPA decided to introduce the standard to promote further awareness and protect worker safety.

Basically NFPA 652 requires pulp and paper mills, manufacturing companies and other businesses that generate dust to perform a Dust Hazard Analysis (DHA) based on the updated steps to prevent and manage fire and explosion hazards related to combustible dusts. Issued by

Do you know all the dangers of dust?

OXIDANT

DUST

IGNITION

DUST EXPLOSION HAZARDs CONFINEMENT

4

DISPERSION

the standard, the new DHA terminology differentiates this analysis from more complex forms of process hazard analysis methods currently found in industry.

If you have processes that create dust or use powders, then you have a responsibility to determine if you have a combustible dust hazard. Why? For one, combustible dust-related fires and explosions are a national problem. In 2016, the U.S. reported 31 explosion incidents that caused a reported total of 22 injuries and three fatalities.

Updated in 2019, the NFPA 652 requires facilities to demonstrate progress in completing a DHA in the years leading up to the deadline and the facilities must continue to review and update their DHA every five years. The NFPA 652 standard applies to all facilities that deal with combustible dust. NFPA 652 defines combustible dust as “a finely divided combustible particulate solid that presents a flash fire hazard or explosion hazard when suspended in air or the process-specific oxidizing medium over a range of concentrations.”

Clearing the air So what’s involved in a DHA? The process identifies threats and creates a plan to manage fire/explosive threats from dust.

Systematically reviewing the safety of both new and existing facilities, a DHA can get manufacturers on their way to preventing a flash fire or explosion hazard associated with the presence of combustible dusts and combustible OXIDANT particulate solids. NFPA 652 is the starting point for this analysis, and acts as a step-by-step guide, identifying hazards and what to do next.

DUST

IG

DUST EXPLOSION HAZARDs

CONFINEMENT

Waste Into Wealth Magazine

OSHA, together with local authorities, enforce the NFPA standards. Identifying and evaluating these potential fire hazards as required by the NFPA is also required by the Environmental Protection Agency (EPA). OSHA assumes a facility’s dust is combustible unless the company has the test results to prove the dust is calculated to have an explosive value of zero.

The analysis examines all areas of a facility where combustible dust is present and identifies hazards as related to explosions and fires. A DHA categorizes each area of the facility as “Not a Hazard,” “Might Be a Hazard,” or “Deflagration Hazard.” Additionally, the DHA helps identify where a facility is not compliant or has areas of concern, and also offers solutions and recommendations.

Chapter 7 of NFPA 652 provides detailed descriptions and explanations of DHAs. You can also find a complete, step-by-step example of how to create a DHA in Annex B. The Center for Chemical Process Safety publishes Guidelines for Hazard Evaluation Procedures, covering simple and complex systems and techniques with examples.

“There can be high levels of dust in pulp, paper and packaging plants, so safety is a priority,” mentions Mid America Paper Recycling President Paul Pirkle.

“Combustible dust must be properly contained and collected. Ignoring dust hazards can result in serious consequences, so we want our suppliers and customers to be safe and aware of the updated standard and the new September deadline.”

Dealing with dust Where to start? To determine if your facilities are applicable to the NFPA 652 standard, having an initial screening using a dust cloud dispersed around a strong ignition source will determine whether any dust in the facility will ignite. Many commercial test labs offer a low-cost test to establish whether a dust sample is combustible.

If combustible dust is present and hazard areas are found, a DHA will be needed.

Specific material tests and procedures depend on the industry and business involved.

According to the NFPA, the NFPA 652 standard pertains to all industries having processes that can generate combustible dust, but specifically addresses the metal, agricultural, chemical and wood processing industries. OSHA

midamericapaper.com

Implement Safeguards

DUST HAZARD ANALYSIS SERVICES RECOMMEND Safeguards

Implement Safeguards

IDENTIFY Hazards

EVALUATE The Risk

also reports the risk of combustible dust explosions is present in industries processing food, grain, tobacco, paper, rubber, dyes, plastics, pesticides, metals, pharmaceuticals and pulp.

The process Basically, if combustible dust exists, professional engineering consultants are available to assist facilities with this evaluation by fully evaluating any combustible dust threat to the facility based on compliance with all applicable national codes and standards. Everyone involved in a DHA should be familiar with all the governing NFPA standards.

Your local authorities and fire marshals with jurisdiction can also provide further safety details.

• The DHA is required to be performed in accordance with NFPA 652, chapter 7. Observations should be documented (the updated edition of NFPA 652 relates to managing the dust-related fire, flash fire, and explosion hazards in industries that use dust collection and handling equipment, or that have processes that may generate combustible dust).

• Results

of the DHA require a plan of action to be implemented.

• Maintaining

the DHA and reviewing and updating the process is required every five years.

Once the DHA is complete and the facility is certified, the best way to reduce worker exposure to toxic dust is to install a multifilter dust collection system.

Capturing dust at its source prevents it from expanding throughout the plant.

Accomplishing this requires efficacious, NFPA-acceptable equipment or devices, Pirkle adds.

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NFPA 652

I H

The U.S. reported 31 DUST HAZARD explosion incidents ANALYSIS causing a total of 22 SERVICES injuries and threeRECOMMEND fatalities.

EVAL The

Safeguards

Facilities producing combustible dust must complete a DHA by Sept. 7, 2020

For more information on DHAs and the NFPA standard, contact the NFPA at www.nfpa.org.

In some cases, any existing dust collection systems will need to be inspected and upgraded to ensure compliance with these guidelines. “Some systems and dust collectors currently in use may not be acceptable. The right equipment that properly isolates and collects toxic dust according to the NFPA 652 standard are available, and using them not only helps prevent hazards, it can even reduce facility costs. Also it can reduce indirect labor costs and time associated with emptying dust into large open-topped containers, which can be messy and dangerous. Further, the containers can take up a lot of space in a facility. Freeing up this space benefits the facility.”

When selecting dust control equipment, look for an experienced supplier in your industry that complies with current OSHA, NFPA and EPA requirements.

Compliant dust collection and mitigation equipment like those distributed by Kernic Systems (www.kernicsystems. com), Burlington, ON, are available in a variety of configurations. Kernic also provides air pollution control equipment to meet any challenge with safety and efficiency in mind, as well as numerous services and accessories to allow users to breathe easier.

Contact Mid America Paper Recycling (midamericapaper.com) and Kernic Systems (kernicsystems.com) to get started on a Dust Hazard Analysis.

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Capital Gaines with Don Gaines CEO

After 38 years in a rapidly changing industry, Don Gaines, Chief Executive Officer, is going the distance at Mid America Paper Recycling, maintaining a positive attitude, and ensuring the company works smarter with a laser focus on its mission and values.

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or 38 years, Don has been at the helm of Mid America, one of the country’s leading independent recycling companies. Born and raised in Chicago, Don is just as comfortable in a production plant as he is in a boardroom. He has seen plenty of change and evolution at Mid America, which are inevitable in any healthy business, and appreciates that Mid America has come a long way since its early days.

After all, recycling and being “green” are in Don’s blood, and he knows the business well.

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Family owned for three generations, Mid America Paper Recycling was established by Don’s grandfather as a plant that recycled metals, textiles, and paper. “My father then grew the business, expanding the paper and metal recycling segments over several decades,” Don remembers. “I started out in sales, mostly trying to find new fiber supply generators and new mill outlets for all of our paper tonnage. Since then, I was tasked with every job function up through the ranks.”

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Don was President of the privately held company until 2018, when Paul Pirkle joined the company. Don transitioned into the role of CEO as Paul became President. Walking the production floors and assessing the process flow of materials through customers’ plants, Don has gained extensive knowledge and insight into what can improve plant processes and what the Mid America team can do to help customers generate more revenue from their paper waste. In a highly competitive industry such as recycling, operations change rapidly every week, as Don can attest. So, he likes to keep an eye on the front lines.

Rolling with the punches Currently, in the wake of the coronavirus, there is much disruption as customers and suppliers develop contingency plans to keep operating should employees become ill. No one could have predicted how quickly the virus would spread or how quickly the U.S. economy slid into a steep downturn. However, some companies are seeing surging demand for essential products and services. This has been Mid America’s experience. Now is a time when people count on the company more than ever.

“My days are especially full right now. There’s never a dull moment,” Don says. But he’s used to thriving under the pressure and maintaining a positive attitude. “We overcame a very large five-alarm fire back in October 1995, that totally destroyed our building and all of our equipment. Rebuilding a company from the ground up was quite the challenge. I am so appreciative of all the great suppliers and mill relationships we have. They were the best motivation to continue to rebuild all that was lost in the fire.”

With the current unpredictable business challenges, Don wears several hats. “But I wouldn’t want it any other way,” he points out. “I have always been a positive person and am rarely rattled by negative parts of a day, week, or month. I really enjoy exploring and developing the various opportunities that come from wearing all those hats. I take great pride in seeing employees develop as they reach new limits. I treasure the opportunity to deliver real added value to suppliers and mill customers.”

Don continues to look forward on how the coronavirus situation might play out in the coming weeks and works with Paul and the team to decide what actions to take while staying safe and boosting productivity.

exceptional growth in export markets. More recently, it witnessed their decline and the shift to alternate regions. Market cycles seem to be shorter now and all played out on a global landscape. Paper mills and the waste hauling industry continue to consolidate. Certainly, the Covid 19 pandemic is the current challenge to many industries. Specific to the recycling industry is the continuing challenge to provide growing streams of high-quality clean fiber for consuming paper mills.”

Despite these and other trials, the company is working much smarter, Don observes. “These days, we have a better focus on communicating and delivering on our mission and core values.

We have a great team of salespeople and customer service representatives, who with excellent oversight, are continuously working to WOW the supplier and customer. Leadership and management at both the generation sites and the consuming paper mills must strive for continuous improvement, education and continuous communication and feedback — all of which are part of our core mission. They are essential elements to real improvement in recycling efforts. “ He took leadership and management inspiration from his father, who led Mid America before him. “My father was a great mentor to watch and learn from,” Don adds. “He always worked hard, was good to his employees and cherished his time with family and friends. That works for me too.”

seem to be shorter now and all played out on a global landscape.

What Don likes most about the recycling industry is the abundance of opportunities it provides throughout all of the market cycles.

“It can bring real economic benefits to the bottom line of a supplier and customer, provide great job opportunities, and is good for our environment.”

For the company to achieve its goals today, Don considers it important to be clear on the objectives. “We’re operating in a time of uncertainty, but we stick to our clear-cut goals on what’s important,” he says. “I am proud of the continuing history of Mid America and how the company has provided the opportunity for so many people to provide for their family’s needs and dreams. I am also proud that the current team and I have been able to bring real added value to so many suppliers and customers over the decades. I have developed so many great relationships that I value tremendously.”

Working smart in uncertain markets

Don cherishes the time he spends with family and friends (now via Zoom), along with his personal time.

Has the business changed dramatically over the years? “Definitely,” Don says. “Our plant and brokerage business have grown and expanded dramatically, with new equipment and technologies. The industry also saw

“What would I be doing if I could have another career? I’d be a pro golfer in the summer, a ski instructor in the winter and a sailboat captain in spring and fall. That sounds fun — tell me where to sign up.”

midamericapaper.com

Market cycles

MAPR Team Profile Don Gaines Chief Executive Officer 38 years at MAPR “We’re operating in a time of uncertainty, but we stick to our clear-cut goals on what’s important,” P: 773-890-5454 x13 dgaines@midamericapaper.com

midamericapaper.com Follow us on LinkedIN

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Safety Tips

“At the end of the day, the goals are simple: Safety and security.”

— Jodi Rell, former Governor of Connecticut

O

bviously, some work environments are more dangerous than others, and “safety first” is more than just a saying. And we’d think by now, everyone would’ve learned those two critical words. But did you know in the manufacturing sector, there were 22,040 injuries, and 49 deaths in 2016, and in transportation and warehousing, there were 23,490 injuries, and 46 deaths (according to the National Safety Council).

Pulp and paper workers are exposed to many hazards and suffer numerous injuries each year. Injuries such as lacerations, being crushed by huge weights, being burned, or getting severely cut by a saw.

The Bureau of Labor Statistics reported 10 fatalities and 2,840 injuries/illnesses in the paper manufacturing industry in 2018. To ensure everyone’s safety, employers must be keenly aware of the primary safety guidelines for employees working in the pulp and paper industry, and plan if the team is working from a ladder, catwalk, or roof.

Regulations like OSHA 29 CFR 1910, ASTM F739-12 for Permeation of Liquids 8

Feeling safe is one of the

most important aspects of life. A safe house, a safe job, etc., are things everyone desires. To that end, there are prescribed procedures for almost everything we do, especially in the field of workplace safety. and Gases and NFPA 2112-Standard on FR Garments, equipment improvements and the proper use of Personal Protective Equipment have resulted in the decline of critical statistics over the years. But even one injury is too many, as the premiere safety experts say. When enhancing safety in the pulp and paper industry, it’s important to plan ahead, assess the risk and use the right equipment.

Safety Equipment All workers should wear the required safety gear (PPE) while on the premises.

Equipment must be kept clean and maintained, especially now with COVID-19. Wearing loose clothing or jewelry when on the job should be avoided. People with long hair must keep it tied back when working with moving machinery.

Risk Assessment To protect yourself and those around you, always be aware of what could go wrong and what you can do to prevent a potentially dangerous situation.

Never take unnecessary risks and stay calm if you find yourself in a perilous predicament. Every company should conduct a risk assessment to identify and prevent work hazards.

Safety Training Safety training is essential when working in a plant. Employees must be aware of all safety procedures, especially as they pertain to their specific position. Special training should occur periodically to reduce the risks of accidents.

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Emergency Evacuation Drills Fire and other evacuation drills are an excellent way to help everyone understand the proper conduct in the event of an emergency. Employees should be familiar with all emergency exits and fire extinguisher locations and how to use a fire extinguisher. It’s also important to determine which machines should be shut down and which can be left running if a real emergency building evacuation occurs.

Percentage of Injuries based on events or exposure in the paper manufacturing industry harmful substances & environments

transportation incidents

46%

Keeping a Clear Head Production facilities can pose a lot of risks, so maintaining a clear head is mandatory.

Working under the influence of drugs or alcohol should be forbidden. People who must take certain medications that have side effects should notify their superiors.

Companies should ensure their workers are aware of all safety procedures, and that the work environment is safe. The rules must apply to everyone, and each breach in following them should be addressed and/or punished. No employee should ever have to worry about working in unsafe conditions, because when it comes to factory work, the consequences can be severe. midamericapaper.com

Occupational Hazards

falls, slips, trips

To create a safe and effective work environment, employees must be able to identify the occupational hazards that lurk around every corner.

Source of Injury/Illness in the Paper Manufacturing Industry

Operating Heavy Machinery

Especially during the coronavirus pandemic, keeping a clean work area does wonders when it comes to preventing accidents. A clean, organized area helps create a better, less stressful work atmosphere. Many factors should be considered, including proper ventilation and lighting fixtures.

overexertion & bodily reaction

19%

All tools should be kept clean and in perfect working condition. Any defects should be immediately reported. No tools should be left in a location not meant for storage.

Maintaining Cleanliness

26%

contact with object, equipment

Working with Tools

Machinery should be in full working condition, equipped with all the manufacturer’s safety guards installed.

Any time a malfunction or defect is noticed, alert the maintenance department, and review the equipment’s instruction manual. Hazardous material handling continues to be an underrated risk in many industries. If you are not trained properly in the technical aspects of operating certain machinery, don’t use it. After work is done, remember to shut down the machines.

5% 4%

floors, walkways, ground surfaces handtools

Even fiber dust produced during the papermaking process can pile up on the ground and cover machinery. When airborne, this dust creates an explosion hazard and can also cause respiratory problems if inhaled by workers (see related article in this newsletter).

11%

5% 9% 9%

vehicles all other

chemicals, chemical products

furniture, fixtures

2% 14%

containers

3%

machinery

A thorough check of the entire facility by the in-house maintenance crew can be performed with minimal or no downtime.

It’s effective at finding hotspots that may have been forgotten about or overlooked.

Any areas, including a loading-dock diamond plate (a forklift operator’s nightmare), concrete ramps, slick grating or uneven walkways can be noted as well.

Walking the area with the plant or operations manager on a regular basis is wise because they usually know where safety problems may be or may start.

23%

Costly slips and falls Slips, trips, and falls can impact the bottom line hard, and severely hinder goals of making a safer environment for a company’s most valuable asset: its employees.

Adding anti-slip floor mats, coatings, ladder rungs, plates and tapes has been a sound practice for years and helps save lives. Such products should far exceed the U.S. Occupational Safety and Health Administration (OSHA) and Americans with Disabilities Act (ADA) guidelines and be extremely durable.

Some of the coatings available can handle an 18-wheeler driving over them 24 hours a day and protect the truck driver from slipping when gassing up in wet or slippery areas. Whatever the nature of the traffic or contamination making the surface unsafe and slippery, the right solution is out there. Secure ladders so that others won’t trip on them or lose traction while pulling material off a truck when the doors are open on a rainy day.

Chemicals used in paper making can also be hazardous. To avoid injury, it’s important that all substances are labeled properly, and the appropriate PPE is worn to avoid exposure problems. Showers and eyewash stations should be clearly marked and located in each employee work area.

Ventilation is key: Hot surfaces and high temperatures within paper mills due to the friction and steam produced during the papermaking process cause heat stress. Without the proper ventilation, employees may succumb to heat stroke if precautions aren’t taken to properly ventilate the work area.

Employees must be aware when working near sharp tools and surfaces, edges, and machinery. Blades and moving rollstock on machines can cause scratches, cuts, and even amputations. With most cutting occurring on the hands, it’s critical for employees to have proper hand protection. Ear protection is also a must to protect hearing if noise reaches high levels.

It’s imperative that pulp and paper companies adopt preventative measures such as purchasing low-noise machinery, noise barriers and adequate ear protection.

While these measures may require cost expenditure, it’s better to be proactive versus reactive. For more safety tips, see the National Safety Council’s website nsc.org.

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how to

inbound Paper mills often struggle with receiving contaminated incoming loads of recycled content. One corrugated medium manufacturer in the Midwest offers insights about these issues, describing its scorecarding process for gauging inbound loads and helping create a cleaner material stream.

U.S.

paper mills supply paper, pulp and paperboard to more than 5 billion people worldwide, generating approximately 500 million tons of paper a year. Paperboard being a highly renewable resource, recovery is crucial. Corrugated has one of the highest recycling rates of recyclable materials. But as many paper and fiber mills know, too many contaminants in the mix can ruin an entire incoming load of what appears to be high quality used material and recycled board.

Mills often deal with household and retail contamination, which range from plastic bags and tape to medical waste and even garden hoses and bowling balls. Such unacceptable items can obviously clog and/ or prevent mill machinery from operating properly, requiring costly stops or even shutdowns and equipment repairs.

The decisions in the field aren’t always easy. Mill sorters and inspectors must be quick to spot as many “troublesome items” in the loads as possible. This leads buyers to think about their program’s relationship with haulers, brokers, MRFs, and more.

So, what does that mean for recyclers and brokers? How can they minimize such issues? We asked Kevin, a Procurement Manager/Buyer at a corrugated mill in the Midwest, for a perspective on industry standards. He discussed the mill’s internal guidelines and best practices related to purchasing recycled material.

Converting 100-percent post-industrial-recycled paperboard and post-consumer Old Corrugated Container (OCC) #11 scrap, the Midwestern mill produces several weights of corrugated medium (also called fluting) sheet used in the production of “new” corrugated shipping containers. Its medium weights range in caliper, depending on customer needs. “We’re a 100-percent-recycled brown-paper mill,” Kevin says. “I spend most of my time buying the raw material from brokers and the municipal recovery facilities.”

With unpredictable gluts and scarcities of the single-stream mix and frequent price fluctuations, Kevin can attest there are many things to consider when receiving, sorting and processing raw materials (or not). “We buy material picked up by brokers and recycling plants and a few other outlets and buy bales of used corrugated from big box retailers,” the procurement manager explains.

His mill relies in part on industry guidelines from the Institute of Scrap Recycling

midamericapaper.com

Traditionally, performance, cost and quality were the key criteria behind material selection.

Industries, Inc. as a foundation of its standards. “Their guidelines include various paper grades and are acknowledged by all paper mills in the industry,” he notes.

A clean stream, quality considerations With many market changes on the supply side of the business in the last year, and more going forward because of the coronavirus, mills today have significant leverage and price scrutiny in what they accept. That means this and other mills in the Midwest can drive prices down on OCC and other materials.

The Mills Issue Contaminant items to avoid: • Inner packing material

“We’re in a pretty good space, considering the expansion of Amazon, e-commerce in general, and all the shipping being done where businesses need strong, durable containers,” Kevin points out.

• Foam pieces

So how picky can the mill be? Traditionally, performance, cost and quality were the key criteria behind material selection.

They still are. But the changing times mean receiving very clean, high quality incoming corrugated loads is the new cost of doing business. “As the need for a cleaner stream becomes clear, we urge haulers and local programs to take additional steps to reduce contamination,” he says. “We have a good handle on what we bring in. In the medium business, that absolutely matters.”

• Tape

Recycled-paper mills are no different than other manufacturing firms. “We have a quality control program for our materials and specs we need to hit,” Kevin points out. “Within those specs, there’s a certain contamination limit we want our supplier base to adhere to and minimize at all costs.”

We don’t want any There are a few headaches surrounding incoming material and the necessary front end inspections and ratings the material receives. Most mills have quality control programs that dictate they issue Continued on the next page

• Product cushioning • Dividers • Plastic • Food waste • Wax coatings • Other substances

Don’t let One delicious lunch ruin the day of a paper recycler.

With Mid America’s help, you’ll avoid these pitfalls.

Take our Waste Audit Survey to find out.

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to sample and split open (each truck contains an average of 30-40 bales), pulling out the contaminants and actively evaluating the material.

“We urge haulers and local programs to take additional steps to reduce contamination.”

lists of what type of recycled material they can accept from vendors. Usually presented to vendors during qualification, the requirements specify acceptable and unacceptable types, and amount of contamination, and what the mill avoids completely. Also included is a maximum moisture level accepted in bales and compacted materials (see sidebar chart).

“For example, we don’t want large amounts of plastic, tape, foam inserts, produce waste from retail produce boxes, food waste of any kind, wax coatings and other substances, and more solid things like soiled linens,” lists Kevin. “We won’t tolerate any type of food waste and anything hazardous to our facility or our workers unloading that material as it comes in. We want to minimize those at all costs — we cannot process that material.”

Contaminants and commingled items can damage baling, cleaning and screening equipment, making the clean paper/ fiber material in the loads unusable. Contamination can also injure personnel and waste haulers and cause other threats and hazards to human health and safety.

The mill’s processing systems are designed to eliminate many of the paperboard impurities in recycled material, but once those impurities exceed certain thresholds, they can really play havoc with machinery, Kevin confirms.

Given the global health crisis right now, along with hazardous and medical waste (medical devices, new/used syringes, bottles, swabs, etc.), one especially egregious pain point can end up in what looks like perfectly clean corrugated arriving straight from a distributor. “Inner packing material, foam pieces, product cushioning and dividers, plastic pieces and other components shipped inside a container with the products. Sometimes, these are

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not removed before the loads get to us,” Kevin adds. “Too many pieces getting into our system could essentially shut down our equipment. We will send back that kind of material.”

Balancing, benchmarking the scorecard The mill sees prices rise and fall with supply and demand, which affects quality.

“We can always tell when something’s happening in the market, based on the quality of the material,” Kevin says. The mill negotiates prices based on supply location to the mill, quality of the fiber and freight costs.

Upon qualifying a new vendor, the mill discusses its quality expectations in terms of cleanliness and its pain points first. “Quality is discussed up front, as well as the types of sources we work with and those we stay away from,” Kevin adds.

Outlining its guidelines, the mill specifies contaminant limits in percentages and grades of A, B, C. The three letter grades designate A, a bale in pristine condition, (completely clean and smooth with no issues); B minor contamination; and C, lower quality with assorted contaminants, with grade C being minimized as much as possible.

If incoming loads exceed those limits, they’re subject to price downgrades; too many downgrades, and the loads are rejected. Too many rejections, and the vendor is banned.

The audit process Buying material on a per-ton basis, the mill begins to take delivery from a new vendor with an assessment of the first truckload of material (roughly 20 tons) that arrives. To ensure the load meets industry standards as well as the mills’ own quality specifications, the recycling crew offloads and then separates a few bales

The crew weighs the contaminated material, after which a percentage of the contamination is calculated with the amount of clean material received, and the data is later recorded and relayed to the supply base.

“We photograph the contaminants and anything that looks sketchy,” Kevin notes.

The information and photos are presented to the supplier, indicating the delivery did not meet the mill’s quality standards.

“This audit gives us a Quality Management Benchmark,” Kevin reports. Although the process is tedious and time consuming, the data we get from it is very powerful.”

One problematic load isn’t cause for extensive action, he points out. “It’s when we get multiple offenses and have already had a conversation with them and have issued them a warning. We must uphold stringent quality standards. If the quality isn’t being addressed, and new deliveries coming in are still problematic, then we escalate a process leading to deductions, billbacks and, if necessary, ultimately rejection from our facility. After that, if the material from that vendor is still unacceptable, the entire shipment can be rejected and sent back. We then put the provider on high alert, which can be expensive for a supplier. We will no longer do business with a repeat offender.”

A ban doesn’t happen very often, Kevin says. It basically comes down to each mill’s internal standards – which are usually proprietary – and what it will tolerate, process and be able to use. “Every mill has its own set of specifications and tolerance level. Specifications beyond the industry standards vary, depending on the type of machinery, screening systems and cleaning systems in place.”

Kevin expects the mill will soon implement a more extensive scorecarding and tracking system for rising and falling contaminant levels, with individual reports that identify supplier trends and histories. “We’re working on compiling the audits into data that will allow us to regularly track and monitor problems, successes and so on, with measurable key performance indicators,” he says.

“Transparency is everything. Continuous feedback and engagement with our brokers and haulers solve issues. We also value partnerships, idea sharing with our suppliers and tips and extra value we can offer each other.”

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Mid America’s Perspective How is Mid America Paper Recycling meeting mill customers’ needs? One paper mill in the Midwest describes why Mid America is one of its top picks in dialing in the mill’s recycling needs.

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hen it comes to Mid America Paper Recycling’s (MAPR) sourcing strategies, its long history, experience, insight and relationships give it the tools it needs to grow “value streams” with its suppliers and provide its paper mill customers with reliable service.

A preferred mill supplier, MAPR understands paper mill operations and the equipment mills use. Key to its success, MAPR learns each customer’s particular “recipe” — the specific type of material customers prefer to convert into new products — and scours its top supplier sources for that blend to provide mills with the best quality material.

Customizing solutions for growth MAPR designs recycling solutions for client partners that align with their individual growth opportunities. “For example, we meet regularly with the team at Kevin’s mill each quarter, setting goals and objectives with them,” explains MAPR’s President Paul Pirkle. “We then follow through to completion. We also review what we accomplished and what will move the ball downfield. This proactive communication is key to continually improving our customer relationships and is a differentiator.”

MAPR works to make its customers successful, Pirkle emphasizes. “We look out for their well-being when we seek out a new supply and provide our suppliers with better reporting and education on material quality we need to provide. We use that information to present new opportunities to our mill customers.”

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What’s sweet and what’s not As part of the Midwestern mill’s supply base, MAPR knows the mills’ “sweet spots,” confirms its Procurement Manager/Buyer, Kevin, at the Midwestern mill.

“They know the kinds of recycled paper material we want and the facilities that source it; they don’t guess,” he says. “At the onset with a vendor, we explain what our supply expectations are: clean, contaminant-free and high-quality used OCC #11 brown corrugated containers. Mid America knows what we want and especially what we don’t want, which is the lower quality end of our requirements list.”

Finding just the right mix for each mill means scorecarding, tracking, evaluating, organizing, following up, keeping a keen eye and much more. The MAPR team has its own internal material grading system and specifications on what each mill won’t accept. “We have a good idea of the quality this mill looks for from us,” Pirkle says.

“When we go to a supply point, we assess all of the material available and factor in what’s best suited to each mill we supply, document those requirements, and that’s what we deliver.”

Regular communication with the mill team is important. For example, if MAPR finds a load of corrugated medium that’s “on the edge” of its customer’s quality standards, it sends photos of the loads for the mill to review first-hand.

“Mid America’s good at idea sharing and streamlining its freight process and getting things dialed in,” Kevin adds. “We

won’t accept incoming corrugated with a lot of contamination and comingled materials in it — much more than just corrugated — plastic bottles, paper cups, aluminum trays and other things from the larger recycling facilities. Mid America knows not to source certain recovery sites for us.”

Market impact on sourcing With the current market fluctuations in pricing and supplies, Kevin acknowledges that his company can be highly selective.

“We’re on a quality kick, but these days, we’re especially aware of what comes in the door. China and other countries are very involved in the market right now, so our staff pays close attention.”

Market changes are impacting supply because currently, there is less quality available, Pirkle notes. “We keep at it, presenting our mill customers with what will fit their quality expectations. If that falls off, then we hurt the trust we have built with them. We make a point to look out for their best interests when we are reviewing material from our suppliers.”

Contaminated loads primarily come from MRFs that process mixed waste, he explains. “Some MRFs have systems in place that will remove most contaminants [also known as clean MRFs]. If they don’t have those systems, we know our mill customers won’t approve of those loads. If the recovery facility is nearby, then we are allowed to ship the mill a trial load. That way, Kevin’s group can test run the material and see if it would be acceptable.”

Many paper mills appreciate these Mid America services. “Mid America has been a good partner for my mill,” Kevin affirms.

Quality ‘buckets’ The mill has a couple of main supplier groups Kevin categorizes into “buckets” in terms of quality. “We really don’t have to worry too much about Mid America’s supply quality. It’s kind of on auto pilot with them,” he notes. “They’re certainly one of our consistent providers. Quality raw materials play the most important role in how we base a fair price. Mid America doesn’t dabble in lower quality, and that fits right into what we want in raw materials. I wish others would take the approach Mid America does. Certainly, other suppliers have quality management parameters in place. But Mid America is forward thinking in communicating with their supply base and mill customers. They’re out in front, leading the pack in terms of initiatives, transparency, being innovative and creating the next big thing.”

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Strengthening the Supply Chain T

During the COVID-19 Crisis

he rapid spread of COVID-19 has introduced new challenges across the business landscape. The worldwide disruption of business as usual due to the Coronavirus has substantially affected supply chains and the manufacturing industry’s ability to deliver product and drive revenue in the recycling and paper mills industries. But responding with a practical and an informed, proactive approach to scheduling, planning, and tracking loads throughout the chain can help navigate uncertainty and gain clarity in these changing times.

Resilience and readiness mean working with partners to provide business support and continuity. Strengthening your supply chain management or (SCM) — the wide range of functions required to plan, schedule, control and execute the flow of 14

Staying agile and organized with added recycling supply chain challenges and other disruptions takes careful planning, flow management technology and timing. recycled materials to the mills as safely and economically as possible — encompasses integrated processes and steps to optimize incoming and outgoing material, information and capital.

Supply chain optimization is one initiative that appears on the to-do lists of many businesses but is frequently sidelined.

That’s because it means tackling big issues such as compliance, supplier relationship management, risk and disruption, responsible sourcing, and transparency.

But as the novel coronavirus outbreak has rapidly expanded over multiple geographic regions, undoubtedly main concerns are being raised about how it will affect the supply chain. In just a few months of the pandemic, disruptions became prevalent.

According to the Centers for Disease Control, establishing a disruption preparedness strategy and ensuring that employees are safe is a must, as is regularly updating personnel on CDC recommendations. Employees should also be equipped with as much personal protective equipment (PPE) as possible and strive to maintain safe production facilities.

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Next, rethink existing strategies, determine vulnerabilities and address as many as possible to guard against supply and demand shocks as material supplies may continue to slow.

Transparency pays Transparency plays an essential part in an effective recycling supply chain. Mills and their customers are beginning to expect transparency along with a firm stance on ethical practices. Maintaining clear, upfront views and visibility are proactive measures.

According to data analysis firm Thomas Insights, maintaining supply chain visibility is a proactive and sustainable measure most businesses can practice in disruptive times. Knowing what the status of production and loads are during supply chain activity and being able to readily respond on this status while still meeting demand can strengthen your resilience when working to mitigate risks from disruption.

“We must continue to work diligently to make sure we are communicating and proactively communicating with one another and finding solutions,” says Mid America Paper Recycling President Paul Pirkle.

“What we do daily impacts the lives of many other people; we can achieve so much when we apply a positive attitude.”

Triumph with technology Having a contingency plan in place means using technology to cope with and better manage production flow and supply chain issues to achieve as much continuity as possible. With the abrupt changes we’re all experiencing, supply allocation decisions can be made easier through thoughtful leadership and innovative leveraging of technology, Thomas Insights reports.

Transportation management technology systems build more robust logistics within the supply chain that may help meet new challenges in demand planning, sourcing, production, inventory management, logistics, storage, and shipping. Using continuous improvement processes and reverse logistics technology can improve the tracking of pre-consumer recyclable loads, finding the right high-grade recovered materials and timely pickup and delivery.

Manufacturers can provide and gain access to data by joining supply chain information-sharing networks and investing in supply chain data management services.

Technology can also expedite accessing, capturing, analyzing, integrating, intermidamericapaper.com

preting, and executing supply chain data in myriad ways. Knowing the status of production at the mills and/or at the supplier level and being able to readily respond to supply-side questions, concerns and issues while meeting demands strengthens supply chain resilience. An improved transportation network can help keep operating costs and the costs of purchasing, production, and throughput stable.

Risk management Risk management forecasts and evaluates financial risks and identifies procedures to avoid or minimize. A supplier bottleneck, a cybersecurity breach, or disruption that the country is currently experiencing with COVID-19 affect the entire supply, with consequences that reverberate up and down the chain and ultimately impact an organization’s profitability and reputation.

Over-concentrating supplier dependency in one area is a risk that can expand profoundly during times of economic uncertainty, Thomas Insights reports. Moving product or production across alternative sources better avoids the risks of over-reliance in one geographic location and instead apportions supplies through a diverse supplier base across different regions, the research firm adds.

Supply managers can also mitigate risks by:

• Conducting an audit with documented response procedures

• Improving supply chain visibility • Maintaining standards with an effec-

tive compliance program for suppliers – establish a continuous improvement program

• Staying

informed and educated about relevant compliance programs

• Developing

meaningful relationships and partnerships with critical suppliers using a structured Supplier Relationship Management (SRM) program to improve transparency

• Managing the risk of raw material price

volatility with financial hedges, operational hedges, and price increase controls

• Improving

supplier scorecards to ensure they are appropriate for individual suppliers rather than using a one-sizefits-all approach

Timing is critical The recycling supply chain is complex and circuitous. Because of this, effective supply chain management requires change management and partner collaborations to effectively align with and communicate with all participants. That’s nowhere

near as easy as it sounds, but relationship building is important. Providing additional efficiencies, benefits, higher profits, and lower costs takes two-way communication between recycling brokers, suppliers, and customers. Ask any paper mill.

“We want to grow [our base of] strategic partners we can call and work with,” says a recovered fiber operations manager from one paper mill/recovered paper recycling company. “When we ask them to deliver another 1,000 tons or need to sell off 1,000 tons and they say, ‘it’s no problem,’ that’s someone we want to do more business with.”

Timing is crucial. “We try to match up our supplies when they come in when mill customers need them,” Pirkle notes.

“That’s very tricky. Our teams are like air traffic controllers, matching supply and demand all day, getting the timing of incoming and outgoing tons right.”

Working smart As the business landscape shifts in these uncertain times, recycling businesses and the mills that engage them are working smarter to recover valuable paper/fiber feedstocks.

While manufacturers have long been reusing and repurposing scrap materials in various ways, finding untapped fiber sources and increasing “easy access” to clearly marked material drop-off bins and receptacles at the manufacturer, distributor and retailer level are worth the effort.

Building managers can be your company’s eyes, ears, and voice. Build relationships with them that will help increase recycling and provide handouts to building managers who support recovery efforts (trash collection adds costs, but recycling doesn’t). These brochures can inform them about how the scraps, rejects, trimmings, and other “stuff” that ends up on the factory floor can be transformed into something valuable.

Keep such handouts as visual as possible — use colorful graphics wherever reasonable to convey recycling messages and exact drop-off locations in the building. And remember to follow city requirements, as necessary.

There are countless reasons to strengthen the supply chain. Managing risk plays a major role, especially now. Even if your business has managed to avoid significant supply chain disruptions so far, 2020 will be remembered as a year of total disruption in the world. It pays to be prepared and organized.

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Mid America Paper Recycling 3865 West 41st Street Chicago, IL 60632 midamericapaper.com 773-890-5454

Your waste is worth more than you think.

Sustainability is an important goal. But profitability must be maintained.

The solution? Contact Mid America for a free waste audit. We will analyze your facilities, from generation to exit, and develop a plan that eliminates cost streams and maximizes value streams.

Scan the QR code to start growing the worth of your waste.

Growing The Worth Of Your Waste midamericapaper.com • info@midamericapaper.com • 3865 W. 41st Street, Chicago, IL 60632 • 773.890.5454