1. Paper-based Packaging Functional and Sustainable Coating Presented by: Islem Yezza Technical Business Development Director

2. Worldwide food loss: 1.3 billion tons/year For decades, packaging was seen as nothing but waste, a nuisance to be avoided Packaging waste pales into insignificance compared with the losses caused by food waste One-third of food in developing countries is destroyed before it ever reaches the consumer Source: United Nations Food and Agriculture Organization (FAO)2 3. Food packaging: Hero or Villain? Three main messages came across with great importance for food packaging: Packaging prevents food waste and saves resources Packaging is part of the solution for an overall resource efficient economy Packaging lifestyles3facilitatesmoresustainable 4. Finding the balance between under-packaging and over-packaging is the aim for all of our businessesSource: Innventia 4 5. AGENDA 1. Paper-based Packaging : Trends and Market 2. Enhancing barrier properties : Why Wax is on the Wane?3. Extrusion coating: a) Conventional resin: recyclability and sustainability b) Renewable and compostable resin (bioplastics) 4. Water-based coating: A bright future 5. Eco-friendly and Innovative Paper-based Packaging 6. Take home 5 6. Packaging: Sustainability is a Shared Responsibility Eco-conscious Consumer demand Sustainable and Convenient packagingformore Retailers and manufacturers perceive a marketing advantage. Eco-friendly, Green, Bio-based, Compostable & Biodegradable: big selling points Legislation & regulations pushing for innovative eco-friendly packagingSustainable packaging: Win-Win-Win for the environment, for manufacturers and suppliers, and for consumers 6 7. Packaging Industry:Market and Growth Global Packaging Industry expected to reach $820 billion by 2016 US: largest consumer for packaging in 2010 with a demand of $137 billion Paper Packaging Materials to reach 223.9 metric tons by 2015 7(Source: Pira International, 2012; Global Industry Analysts, 2012) 8. Paper-based Packaging: The Responsible Package Provides versatile and responsible packaging solutions for product manufacturers, retailers, and consumers Paper has an excellent image as packaging material (renewable, recyclable and biodegradable) Paper and paperboard account for 29% of the Total MSW generation in 2010 (Total 250 million tons) About 71% of paper and paperboard containers and packaging was recycled, including 85% of all corrugated boxes (Source: EPA, 2010) 8 9. Paper-based Packaging: Barrier Improvement Improving paper's barrier properties is seen as a crucial step in increasing its viability as a packaging material The missing performance and barrier properties of paper can be compensated by: 1. Wax impregnation: curtain, cascaded 2. Extrusion coating: Petro-based resin and Bioplastics 3. Water-based coating 9 10. Wax-coated Packaging: Wax is on the Wane Petroleum-based wax has traditionally been used as a moisture barrier to preserve the strength of a corrugated container holding iced or wet products Waxed paper-based packaging are raising Recyclability, Sustainability and Renewability Concerns Growers and retailers are looking for alternatives to wax10 11. Wax: Sustainability & Economic Concerns Wax-coated packaging are not recyclable: wax coatings do not dissolve in water, so they cannot easily be recycled Wax-coated packaging are heavy Paraffin based wax, a non-renewable resources is becoming more expensive Many leading retailers and grocers, including Wal-Mart and Costco have been demanding an eco- friendly alternative to wax coated boxes from their suppliers 11 12. Wax Alternatives: Growing market The future is clear wax replacement packaging will become a necessity Opportunities to sharply reduce their landfill costs, while boosting their recycling levels In 2010, the corrugated industry shipped 6.4 billion square feet of boxes using recyclable wax alternative coatings. Thats over 30% more than the 4.9 billion square feet shipped in 2009 and 385% more than when first measured in 2002, dramatically increasing the volume of containers that could be recycled. 12(Source: Corrugated Packaging Alliance, 2011) 13. Extrusion Coating:PE, PP and HDPE Extrusion coating allows processing a variety of polymers and board Paper and paperboard (SBS, CCNB, CRB, Bending Chipboard, Liner) LDPE - most widely used material for extrusion coating applications: easy to process, provides adequate moisture barrier, has excellent sealing properties, grease resistance and lamination layer and cost competitive 13PP and HDPE 14. Extrusion Coating: Hygroscopic Resin Hygroscopic resin consume more torque than the standard olefin resin: Low shear (low speed), high torque PET coated paperboard: Thermoformed paperbased trays, Ovenable/Microwavable paper-based trays/folding carton Nylon coated paperboard: Corrugated box (pass through the corrugators) PLA coated paperboard: Compostable Paperbased bags, Take-out box 14 15. Bioplastic: Sustainable and Functional The bioplastic Market in 2010 was 771 million pounds. This is expected to reach nearly 932 million pounds in 2011 and then further increase to 2.5 billion pounds in 2016, at a CAGR of 22% for the 5-year period Biopolastcis can be used as barrier coatings15(Source: BBC Research 2011) 16. Bioplastic: Confusion in terminology Biopolymers are plastics that are biodegradable/ compostable and/or have bio-based content Biomass based plastics are not always biodegradable Biodegradable plastics are not always biomass-based16 17. Biodegradable/Compostable/Biobased Distinctions are subtle but significant All biodegradable material are not compostable Biobased not necessarily compostable Biobased: Focus is on the origin of life or where did the carbon come from (ASTM D6866). Uses C14 content measurement Compostable: Focus is on end of life or disposal. Independent of carbon source standards (EN13432 and ASTM D6400) 17 18. Bioplastics: Challenges & Hurdles 1)Confusion in terminology: Biodegradable, Oxo, Biobased, Compostable? Education is needed toclarify in the minds of consumers and clients, the environmental benefits of these new materials 2)End of life hurdles: the puzzle? Consumers are3)Carbon footprint: bioplastics not necessarily greener than oil based relatives? Skeptics aboutconfused when it comes to separating biodegradable, compostable and recyclable plastics. Information about how to best dispose of it, is necessaryLCA studies: data may not be accurate or complete and system boundaries are not easily defined18 19. Bioplastics: Challenges & Hurdles 4)Price: Current prices for bioplastics are significantly higher than the cost of PE. People are environmentallyconscious when its convenient and affordable. Higher oil prices are lowering the gap in prices of bioplastics and conventional plastics 5)Weak barrier properties: MVTR, OTR, heat resistance, microwavable? Barrier and physical properties may limit applications - Blends and compounding6)Value proposition: Promoting Biobased, Biodegradable or Compostable? Is not yet clear in the minds of most consumers and clients19 20. Bio-resin extrusion coating: Challenges Bio-resin could not be processed at existing PE screw: Stability is poor, melt temperature are too high, and the available torque is inadequate1. Bio-resins consume more torque than the standard olefin resin: Low shear (low speed), high torque New screw 2. Bio-resins are very hygroscopic. Hygroscopic materials absorb water, even from the air: Inline drying is essential Dryers20 21. Bio-resin extrusion coating: Market education 1. Biopolymer-coating: sustainable and functional barrier2. Bio-resin extrusion coating: dedicated screw and dryers 3. Trends: volatile oil prices; energy security concerns; environmental benefits; favourable regulatory initiatives; and the improving performance and competitiveness 4. The distinctions are subtle but significant: not all bioplastics are created equal and there are a lot of misleading claims out there 5. Education: has to be a combined effort from resin makers, converters and the companies that will be selling these products to the consumer 21 22. Water-based coatings: Repulpability, an Important Route to Sustainability With the push towards sustainability, repulpability and recyclability, water-based technologies are gaining acceptance The packaging combines the best aspects of two materials: environmentally friendly paperboard and good barrier properties of water-based coatings Coatings can be recycled, repulped and/or composted Alternative solution to current wax, PE extrusion coating and film lamination22 23. Water-based Coatings : Basic Formulation Latex (as binder, other polymer can also be used) Pigment s Fillers Dispersant Defoamer pH control agent Mica Talc23 24. Water-based Coatings: SEM Image(Source: Claude Tremblay, Cascades) 24 25. Water-based coatings: Tailored solutions Water-based coatings can be custom-formulated to meet the packaging requirements of a wide range of products1. Barrier properties : Moisture - Oil and grease barrier 2. Physical & Chemical properties : Scuff resistance, anti-slip, non-abrasive, corrosion inhibitor, conductive & anti-static3. Aesthetic & decorative : color coatings25 26. Water-based Barrier: A Balancing Act There are always exceptions, but Greater heat sealability = more blocking Higher coating water retention = poorer water barrier effectiveness Higher water barrier = poorer cold glueability Higher oil resistance = poorer hot melt adhesion Higher effectiveness = higher cost26 27. To-Go containers: Grease and Moisture Barrier Replace not easily Recyclable and Non Renewable EPS containers About 61% of consumers say that they are willing to pay more for takeout packaging made with sustainable materials. (Source: Technomic 2012)Packaging Requirements: Moisture & grease barrier, heat resistance, microwavable, Gluable. FDA compliant, Compostable/recyclable/Repulpable 27 28. Corrugated Boxes : Produce, Meat, Poultry and Fish Replace not easily recyclable EPS Boxes, waxed boxes and Petroplastic film laminated board Eliminates costs linked to disposal at landfillsPackaging Requirements: Avoid water wicking inside28the linerboard, Endure both packing house and transport conditions, withstands Corrugating process heat up to 375F, FDA compliant, Recyclable/Repulpable 29. Folding Boxes: Dry and fatty Goods Replace not easily recyclable Petro-plastic film laminated boardPackaging Requirements: Prevent Caking and moisturepicking, Grease-resistant, Holds up to hot-melt glue and cold set adhesives, FDA compliant, Recyclable and Repulpable 29 30. Food waste bags: Compostable Replace Petro-plastic film laminated paper and plastic bagsPackaging Requirements: Leak proof, Grease barrier, Sealable, Compostable 30 31. Thermoformed trays: Functional and sustainable Alternative to the traditional Styrofoam trays, PET microwavable trays and others plastic trays and platesPackaging Requirements: Leak proof, Grease barrier, Dual Ovenable, FDA compliant, Repulpable and/or Compostable 31Recyclable, 32. Wrap-up: Keep the Molecule in Play Major companies are beginning to take note and a few have stepped forward to lead the Sustainable Packaging Revolution Market drivers: Increased focus on recyclability and Increased demand for sustainability Divert from landfill is sustainable, but we must keep in mind the packaging basic functions: Protect Inform Contain Transport Both the packaging industry and consumers need to work together to develop a unified set of standards that will end confusion and maintain transparency in the rapidly growing sustainability sector Functional an Sustainable coatings: Developments of speciality paperboard through innovation 32 33. Thank you PRESENTED BYIslem YezzaTechnical Business Development Director Email: Islem_yezza@cascades.com