respect for the environment

social progress

economic development

committed to sustainable development

Vinyl 2010

Progress report 2004

2004

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Executive Summary

The year once again saw solid progress by the PVC

industry within the economic, environmental and

social principles of sustainable development.

The highlights of this substantial and ambitious

undertaking are presented in this executive

summary.

Vinyl 2010 and the VoluntaryCommitmentVinyl 2010 puts the PVC industry’s Voluntary Commitment intopractice. Signed in 2000, this is a 10-year plan to deliver contin-uous improvement in product stewardship across the PVC life-cycle. Principal elements of the pledge are to cut raw materialand energy consumption in manufacturing; minimise the envi-ronmental impact of resin production; develop a comprehen-sive waste management strategy; ensure that all plasticisers canbe safely used; and asses potential risks linked to lead as a sta-biliser while working toward replacement by 2015. The industryalso committed to cease using cadmium stabilisers, which hasbeen done.

Implementation through Vinyl 2010 emphasises:

- Clear numerical targets on recycling. - Significant investment on scientific and technical research and

on increasing practical knowledge.- Transparency, achieved through annual reports and by active

involvement of external stakeholders.

Monitoring ProgressThe Monitoring Committee held its first meeting in 2003 withsenior representatives from the European Commission, theEuropean Parliament and Trade Unions. Under theChairmanship of Professor Alfons Buekens of the Free Universityof Brussels, the Committee monitors and reviews progress onthe Voluntary Commitment.

EU EnlargementEnlargement brings new challenges for sustainable develop-ment. Vinyl 2010 continued its work with the PVC industry in EUaccession countries to raise health, safety and environmentalstandards within the framework of sustainable development.

FinanceExpenditure by Vinyl 2010, including EuPC and its members,amounted to e4.4 million in 2003, down slightly from e4.5 million the year before. Expenditure on waste management andother projects is expected to increase substantially during thecurrent year.

The 2003 accounts were audited and approved by KPMG.

Progress on Principal Projects"It is particularly encouraging to note Vinyl 2010’s

achievement of the 2003 target to recycle 25% of

collectable, available PVC waste from window pro-

files, roofing membranes, pipes and fittings."

This is how DNV Consulting, commissioned by Vinyl 2010 toprovide an independent verification of the Progress Report, evaluated some of the year’s progress.

The Voluntary Commitment is a major undertaking in terms offinancial and human resources and its long-term successdepends on steady improvement. This was demonstratedthroughout the year as summarised in the following table:

Vinyl 2010 Member

Key Commitments

Targets

VoluntaryCommitment

Approach

Highlights of theYear

Resin Production

ECVM

Reduce environmental impact of emissionsduring production to a minimum.

Improve the eco-efficiency of PVC resinmanufacturing.

Comply with the ECVM Industry Chartersfor producing PVC by the suspension (S-PVC) and emulsion (E-PVC) processes.

ECVM Industry Charters.

E-PVC Charter verification audit planned,based on 2004 results.

Stabilisers

ESPA

Assure responsible use of stabilisers used with PVC.

Develop and provide stabiliser systemsconsistent with long term sustainabledevelopment.

Discontinue sales of cadmium stabilisers(done in 2001).

With the support of EuPC, reduce sales oflead stabilisers by 15% by 2005, by 50% in2010 and to zero by 2015.

Research and develop alternative stabilis-ers. In parallel conduct and/or participatein risk assessments on cadmium, leadand tin.

Lead Risk Assessment continued on track.

Plasticisers

ECPI

Assure responsible use of plasticused with PVC.

Boost research, studies and expeplasticisers.

Support completion of phthalatesassessment (EU process).

Support the Lifecycle Inventory (Levaluation of materials.

Scientific research and Risk Asses

Public information resources (weon health and safety.

Research projects covering mechof reproductive toxicity, epidemiostudies on asthma and research ohuman exposure and biomonitor

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Waste Management: EuPC Sectorial Projects

EuPC

Implement recovery and recycling schemesfor specific applications.

Recycle 25% and 50% of the collectable,available PVC waste from window profiles,pipes, fittings and roofing membranes by2003 and 2005 respectively, and 25% offlooring by 2006 (50% by 2008).

Sectoral recycling projects on pipes and fit-tings, window profiles, roofing membranes,coated fabrics and flooring.

Targets for 2003 met.

Progressively enlarged the number of coun-tries involved in sectoral recovery and recy-cling schemes.

Waste Management: Pilot Projects and Studies

All

Continue studies, research and trial proj-ects: these are vital to achieving the targets set and to the long-term success of theVoluntary Commitment.

Develop recovery and recycling schemes.Work in collaboration with local and regional institutions where possible.

Develop and evaluate technologies ofmechanical and feedstock recycling.

Evaluate eco-efficiency of the availablerecovery and recycling options.

Peer-reviewed and published eco-efficiencystudy on available recovery and recyclingoptions.

ACRR project – prepared the "Good practiceguide on waste plastics recycling – a guideby and for local and regional authorities".

Advanced on the Vinyloop and RGS-90/Stigsnaes projects.

Social Progress and Dialogue

All

Collaborate with EU Trade Unions (EMCEF)to develop European safety, health andenvironment standards.

Work to transfer standards to EU accessioncountries.

Dialogue with European works councils.

Promote and enhance social progress within terms of sustainable development.

Social Dialogue Charter of the PVC industry.

Continued regular meetings to progresshealth, safety, social and environmentalissues in the EU and in EU accession countries.

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Table of Contents

1. Foreword 2

2. Milestones and targets 2003/4 4

3. Project reports 6

a. PVC resin manufacturing 6b. Plasticisers 7c. Stabilisers 8d. Waste management sectoral projects with specific recycling targets 9e. Waste management pilot projects and studies 12f. Other projects 17

4. Working together 18

a. The Monitoring Committee 18b. The debate on sustainability 19c. Social dialogue: Challenges and the role of Vinyl 2010 in EU

enlargement 19d. Vinyl 2010 board members 19

5. Financial report 20

6. Verification statements 21

a. KPMG certification 21b. DNV verification 23

7. Frequently asked questions about PVC 24

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Foreword

Making Steady Progress

Four years have passed since the establishment of Vinyl 2010 andonce again I am pleased to report steady progress toward ourlong-term goals of sustainability.

The challenges we set for ourselves continue to demand commit-ment, investment and much hard work. Vinyl 2010 is a huge proj-ect in scope, depth and ambition and we are now seeing solidresults across the many different undertakings and projects.

We are delighted to announce the achievement of our VoluntaryCommitment target to recycle 25% of collectable, available PVCwaste from window profiles, roofing membranes, pipes andfittings in 2003. It represents a true success for Vinyl 2010 and itdemonstrates that we are fully on track to achieve the 50% objec-tive in 2005.

Other important positive results come from the field of mechanical and feedstock recycling, where the Vinyloop®, RGS-90/Stigsnaes and Dow/BSL technologies showed a promising potential to increase volumes of recycling.

Our continuing work with the Trade Union organisation EMCEF(1)

aims to take advantage of the Voluntary Commitment approach asan efficient way of transferring best practice to the acceding EUMember States, avoiding complex legislative processes.

(1) EMCEF: European Mine Chemical and Energy Workers Federation. (2) 18.09.03 /Answer given by Ms. Wallström to question E-2416/03 by MEP Concepcio Ferrer

We are preparing for the challenge of integrating the EU accessioncountries into building a sustainable future for European industry.Several meetings were held in these states, including one involvingTrade Unions, to help raise health, safety and environmental stan-dards to higher levels.

Another landmark in 2003 was the establishment of a MonitoringCommittee with the participation of senior Commission officialsand representatives of the European Parliament. The importance of"keeping under continual review the progress towards achieving the Voluntary Commitment" was emphasised by EuropeanCommissioner Margot Wallström(2) and we are pleased that theMonitoring Committee has for the first time reviewed Vinyl 2010’sprogress report.

Vinyl 2010 is still waiting for a Communication from the EuropeanCommission and everyone in the industry would welcome policyclarity to facilitate progress. With or without this, however, Vinyl2010 will continue to put into practice the Commitment of theindustry chain toward sustainability.

There remain many challenges to overcome; challenges that Vinyl2010 is taking on with vigour and enthusiasm to further protect theenvironment, create social advancement and increase economicwealth within the PVC industry for the ultimate benefit of the citi-zens of Europe.

David ThompsonChairman Vinyl 2010

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Statement from the Chairmanof the Monitoring Committee

2003 was the first year for the Monitoring Committee, a group thatbrings together stakeholders to provide an independent review ofthe progress of Vinyl 2010.

The simple fact that the Committee exists shows the seriousness ofthe PVC industry. As Chairman, I am especially pleased about theparticipation of members from outside industry – currently from theEuropean Commission, the European Parliament and the TradeUnions. They are helping Vinyl 2010 to succeed and therefore tomove toward sustainable development as a practical reality. I wouldwelcome the inclusion of representatives from Non GovernmentalOrganisations who likewise have a strong interest in this area.

The Committee is a transparent group and our minutes are open toeveryone. They can be found on the website of Vinyl 2010.

We have reviewed this report and are in agreement with its contentsas published.

Professor Alfons Buekens

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Milestones and Targets

Q UA R T E R 1Publication by ESPA of 2002 statistics on the three mainuses of lead-Achieved

Q UA R T E R 2Peer-review and publication of eco-efficiency study -AchievedConclusion from the improved logistics scheme for theDow/BSL plant -AchievedSet-up of Recovinyl SA to boost PVC mechanical recy-cling by independent recyclers -AchievedGoing on-line of Recovinyl SA website interface withwaste owners (input specifications)-Delayed, please see project report

Q UA R T E R 3Start of large-scale pilot production for Redop project -Achieved in Q4, please see project reportStart of plant modifications for large-scale Stigsnaesfeedstock recycling plant -Planning permission obtained in October 2003 fromdistrict authorities; construction work ready to start(early 2004)Initiation of various pilot collection tests byEPFLOOR-AchievedStart of test collection under the EPCOAT projectin France-AchievedStart of test collection under the EPCOAT projectin Germany-Postponed to Q1 2004Recovinyl SA sales department on-line-Delayed, please see project report

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Q UA R T E R 4Compliance deadline for the ECVM E-PVC Charter -Achievement will be verified through audit planned in 2004 and willbe reported next yearCompletion of EU risk assessments on DBP, DINP and DIDP-Awaiting publication, please see project report25% recycling of collectable, available PVC post-consumer wastefrom pipes, windows, fittings and roofing membranes by EPPA,TEPPFA and ESWA -AchievedFinal choice on recycling process for ESWA project -AchievedCompletion by EPFLOOR of pilot tests to expand flooring wastecollection scheme-Achieved (Pilot in the Netherlands completed; joint application syn-ergy project to be continued for expanding collection schemes inGermany)Completion by EPCOAT of study on artificial leather collection andrecycling-AchievedResults from survey on novel gasification processes for treatingPVC-rich waste streams -AchievedInterim conclusion of UK mixed PVC recycling project -AchievedEvaluation on start-up period of Recovinyl SA -Delayed, please see project report

Q UA R T E R 1Test collection under the EPCOAT project to start in Germany2003 statistics on the tonnages of PVC stabilisers to be pub-lished by ESPA

Q UA R T E R 2ESWA project: geographic extension in Benelux, France andAustriaLight concrete project: conclusion of feasibility studyEPFLOOR: evaluation of test with novel mechanical recyclingpartner in SpainVinyloop Dreux project: completion of feasibility study Steering committee to decide future steps for the Redop project

Q UA R T E R 3Start testing Halosep-Watech process at pilot plant level

Q UA R T E R 4Commissioning of large-scale RGS-90/Stigsnaes feedstock recycling plantEPFLOOR: recycling of PVC flooring in feedstock recycling plantRGS-90/Stigsnaes to beginEPFLOOR: evaluation of pilot collection tests in France,Germany and UKCompletion of EU risk assessments on DEHP and BBPDecision on investment and starting operation of UK mixedPVC recycling project EPCOAT: signature of the commitment related to the achieve-ment of project objectives in 2007

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Project Reports

PVC Resin ManufacturingResin manufacturers are continuing their efforts

toward minimizing environmental impact through

compliance with the ECVM(*) Industry Charters

for producing PVC by the suspension (S-PVC) and

emulsion (E-PVC) processes.

VCM and PVCFollowing the results, announced in 2002, of the second veri-fication of the ECVM Charter for the production of EDC/VCMand suspension PVC, an ECVM task force started work in2003 to clarify any methodological uncertainties remaining inthe compliance process and to investigate where and howthe Charter could be updated. A comprehensive survey of theactual emissions levels will be completed during the firstquarter of 2004 and will constitute an element of the revi-sion. Other elements, including technological progress,having taken place since the Charter was signed in 1995 willalso be included.

The deadline for compliance with the ECVM Charter onemulsion PVC was end 2003. Preparation work (method-ology issues, site questionnaires, etc.) for the first verifi-cation of this Charter has started. The externalverification will assess compliance, based on the actualachievements of 2004. We expect final results of thisverification during the first quarter of 2005.

InhibitorsAlthough not included within the VoluntaryCommitment, ECVM member companies havestopped using bisphenol-A as an inhibitor in the poly-merisation stage of PVC production as from January1, 2002. The decision was made following the conclu-sions from the risk assessment on bisphenol-Aconducted under the responsibility of the UK authorities.

(*)ECVM - The European Council of Vinyl Manufacturers

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The UK authorities have formallyaccepted the voluntary action of themembers of ECVM as a valid "riskreduction strategy". The voluntaryaction will thus be the only suchstrategy proposed to the EuropeanCommission.

To ensure proper compliance moni-toring, ECVM has accepted toinclude this agreement in the nextrevision of the ECVM Charter.

ECVM Charters are regularly submit-ted to external verification and arean integral part of Vinyl 2010 andhence subject to the scrutiny of theMonitoring Committee.

PlasticisersPlasticisers are added to PVC to make it flexible,

resilient and easier to handle for a wide range of

final applications.

Plasticiser ResearchIn 2003, ECPI(*) contributed more thane500,000 to research projects on mecha-nisms of reproductive toxicity, epidemiologystudies on asthma and research on humanexposure and biomonitoring.

The latter included preparation for a majorstudy in 2004 with human volunteers. These activities fulfil theplasticiser industry’s continuing commitment to build up its scien-tific database and to ensure that plasticisers can be used withoutrisk to the environment or human and animal health.

Risk AssessmentsEU risk assessments of the commercially used phthalate plasti-cisers continued in 2003.

ECPI is awaiting final approval by theEuropean Commission of the EU riskassessments on dibutyl phthalate(DBP), diisononyl phthalate (DINP)and diisodecyl phthalate (DIDP).Risk assessments on di-(2-ethyl-hexyl) phthalate (DEHP) and butylbenzyl phthalate (BBP) should befinalised during the course of 2004.The technical risk assessment reporton DINP has already been publishedin its final form by the EuropeanChemicals Bureau and it shows norisk to human health or the environ-

ment for any current use. The report is available on the DINPInformation Centre website at www.dinp-facts.com.

Second Global Scientific WorkshopPreparatory work began in 2003 for the second Global ScientificWorkshop, which will take place in Europe during 2004. The aimof this major event is to enhance understanding of the safe use ofplasticisers. It will bring together industry and other scientificexperts to discuss and evaluate findings from the latest researchstudies and to exchange information.

Availability of Information ECPI remains committed to increasing people’s understanding ofthe safe use of phthalates and invests accordingly. During 2003further specialist Internet sites were developed and brought on-line and can be visited at www.plasticisers.org and www.phtha-lates.com. With the expansion of the European Union, it is noweven more important to have ready access to detailed informa-tion in a form that is clear and easy to understand.

(*)ECPI - The European Council for Plasticisers and Intermediates

ECVM Industry Charter

ECPI publication

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StabilisersStabilisers are added to PVC to allow it to be

processed and to make it resistant to heat, sunlight

(ultraviolet rays) and other external forces.

Risk AssessmentsRisk Assessments involving ESPA(*) on cadmium, lead and tincontinued throughout 2003.

The voluntary risk assessment of lead is on track for submissionin September 2004 to the Dutch rapporteur. The assessment isthen expected to go through the Existing Substances proceduresfor discussion by all EU Member States – the first example of sucha voluntary procedure.

With respect to cadmium, ESPA members phased out the sale of allcadmium stabilisers in the EU, Norway and Switzerland in 2001.

Progress on Lead SubstitutionThe first target regarding lead substitution is the reduction of leadstabiliser sales by 15% in 2005. It will be important to be able toaccurately verify the achievement of this target, towards the realmarket in the EU15 member states, as committed in the VoluntaryCommitment.• Figures in previous Progress Reports cover sales by members of

ESPA. ESPA represents approximately 90% of the market from1999 to 2002, and 97% for 2003 (and not 2002 as indicated erro-neously in the 2003 report).

• The reference figures for 2000 must relate to the EU15 membercountries only. This means that the above-mentioned leadvolumes will have to be corrected, as they currently includeSwitzerland, Norway and sales by ESPA members to Turkey. Theresult will be presented in the next Progress Report and all futurestatistics will only relate to the EU15 member countries.

• It is important to provide statistics for the whole EU15 market andto include all ESPA members. Consequently, the ESPA 2000figures will be adjusted in future Progress Reports to take this intoaccount.

• To reflect the real situation, ESPA will also include estimates of thevolumes sold to the market by non-ESPA members (which arebelieved currently to represent approximately 3% of the EUmarket).

The table below shows that the usage of lead stabilisers, based onour understanding of the market, has dropped by 5.3% in the fouryears to 2003 and that substitution has been 11.3%.

Calculation of the Substitution Rate*

Tonnes of stabiliser systems2000 2001 2002 2003

Formulated Lead Stabilisers(1) 120,421 113,378 113,256 118,927

Formulated Mixed Metal

Solid Stabilisers e.g. Ca/Zn systems(2) 17,579 17,988 23,946 29,758

Tin Stabilisers(3) 14,666 15,614 14,756 14,180

Liquid Stabilisers – Ba/Zn or Ca/Zn(4) 16,709 13,351 13,975 13,441

(*)ESPA - The European Stabiliser Producers Association

European Production Data

NotesFormulated means that these systems are complete stabiliser/lubricant pack-ages and may also include pigments or fillers as a service to the customer.

1 Used in pipe/profiles for construction and electrical cables. 2 Includes food-contact and medical applications, plus all lead replacement

systems. 3 Used primarily in rigid applications including food-contact use.4 Used in the wide range of flexible PVC applications, calendered sheet, floo-

ring etc.

The tonnage figures represent sales to EU countries plus Norway, Switzerlandand Turkey. In 2002 and 2003 ESPA managed to bring new members into itsorganisation and so make the tonnage figures closer to 100% coverage. Thisexplains the apparent decrease in the rate of substitution of lead in the figuresfor the last two years.

Tonnes of stabiliser systems2000 2003 Difference (%)

Formulated lead stabilisers (A) 128,721 121,927 - 5.3

Formulated solid stabilisersCa-Zn (B) 17,579 34,258 + 100.0

(A) + (B) 146,300 156,185 + 6.7

(A)/((A) + (B)) 87.9% 78.0%

(1) 120,421 + 8,300 estimated non recorded (2) 118,927 + 3,000 estimated non recorded (3) 29,758 + 4,500 estimated non recorded (4) This number corresponds to the PVC consumption growth

* including Switzerland, Norway and sales by ESPA members to Turkey

Substitution corresponds to the change in ratio (A)/((A)+(B)). Thecomparison of this ratio between 2000 and 2003, respectively87.9% and 78%, shows a real decrease of 11.3%. Substitution isfaster than the impression we can get from the reduction in leadconsumption.

(1) (2)

(3) (4)

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PVC Waste Management: SectoralProjects with Specific RecyclingTargetsOur industry’s commitment is to recycle 25% by 2003

and 50% by 2005 of collectable, available PVC waste

from window profiles, pipes, fittings and

roofing membranes. For flooring waste the

commitments are 25% by 2006 and 50% by 2008.

Window ProfilesEPPA(*) has made significant progress in 2003 with collected post-consumer PVC window waste increasing to 4,817 tonnes. This resultallowed EPPA to exceed the target to recycle 3,407 tonnes, repre-senting 25% of the total available, collectable volume of post-consumer PVC windows. This target is based on waste availabilitystudies ordered by EPPA.

2003 was a breakthrough year for the post-consumer PVC windowcollection and recycling project. Moreover, it was the year where thesynergy projects – joint collection of post-consumer PVC construc-tion products – started in the key countries of Germany and the UKas well as leading to more dense collection networks in France andDenmark. In addition, synergy projects among the existing collec-tion projects in Austria, the Netherlands and Belgium continued orstarted up, as in Italy.

In terms of important research, participation in the ACRR project inthe regions of Catalonia and of Porto demonstrated that thevolumes in these regions are still very limited.

National DevelopmentsIn Germany, the window market shrank once again, decreasing by a

further 7.1%. The total window market has decreased from 25.2million units in 1995 to 13.1 million units in 2003. It was thereforea major success that, despite this unpropitious economic envi-ronment, REWINDO succeeded in increasing collected and recy-cled waste volumes by over 15%.

Joint collection initiatives together with the PVC pipe, roofingmembranes and flooring industry were set up in the regions ofBremen, Rhein-Sieg, Würzburg and Munich, and expanded toHeidelberg/Mannheim and the Ruhr region. Increased coopera-tion with the demolition industry and the German Chambers ofCommerce were also highlights of this excellent year.

Towards the end of 2003 REWINDO received the results of ananalysis – conducted by the Consultic market research firm – ofthe potential waste streams in different market segments. Thestudy came, among others, to the remarkable conclusion thatover 11% of dismantled post-consumer windows are being re-used. (For more information please visit www.rewindo.de.)

In France, the joint post-consumer window and pipe project contin-ued and resulted in the foundation of a separate legal entity: PVCRecyclage sarl with the appointment of a managing director.

The network of collection points was enlarged to 45 and thecollected volume increased drastically. Due to a lack of localcapacity for recycling, France has difficulties in reducing thecollection costs to an acceptable level. This will therefore be amajor challenge in 2004.

The UK, through the British Plastics Federation (BPF), gainedfurther expertise in the dismantling and collection of post-consumer windows via the Oldham and Warrington refurbish-ment projects. The BPF sees considerable value in approachingwindow recycling aspects in synergy with other plastics and build-ing sectors, and has developed a joint approach under theumbrella of the Vinyls Group Voluntary CommitmentImplementation Committee.

(*)EPPA - The European PVC Window Profile and Related Building Products Association, an EuPC sector group

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The BPF is leading a synergistic project aiming to find the mostappropriate ‘best practice’ solutions to collect and manage PVCconstruction and demolition waste in the UK. The project will takeadvantage of the experience gained with the Weaver Vale HousingTrust Project, where 50,000 PVC window units are to be replacedduring the coming five years. In addition, the practicalities ofwindow collection, dismantling and sorting will be tested at eightdifferent sites, including Weaver Vale, Burnley, Reading,Peterborough, Oldham and Rochdale. Collaborators in the projectinclude the Building Research Establishment Ltd (BRE), theNational Federation of Demolition Contractors and PVC recyclersand waste management companies. See also UK Mixed PVCRecycling Project (below).

In September 2003, the BPF participated in a consultancy projectstarted under the leadership of BRE to increase glass recyclingfrom windows. The BPF and some of its key Windows Groupmembers examined the feasibility of increasing recovery of PVCalongside glass.

In Denmark, EPPA continued its joint collection efforts with PVCpipe manufacturers (TEPPFA) under the WUPPI A/S recyclingventure, now covering more than 75% of the country’s municipalwaste centres. (For more information please visit www.wuppi.dk.)EPPA, meanwhile, is forging ahead to develop similar collectionand recycling schemes in Austria, the Netherlands, Italy, Belgiumand Ireland.

Pipes and FittingsThe main objective for TEPFFA’s(*) collection and recycling activitiesin 2003 was to improve cost/volume ratios in order to make thevarious national projects financially sustainable. With this objectivein mind, TEPPFA concentrated its efforts on the higher volumewaste countries and put into effect closer cooperation with repre-sentatives of other rigid PVC products used in construction such aswindow profiles, gutters, shutters, and corrugated roofing.

These efforts allowed TEPFFA to reach the target to recycle 25% ofcollectable, available PVC waste from pipes and fittings (5,067.5 tonnes). This target was calculated according to the EuPCmodel, as updated in the course of 2002.

Sluggish economic activity in 2003 had a negative effect on collectionvolumes. Recycled volumes reached 6,150 tonnes this year.

The most encouraging lesson to date from the TEPPFA programmeis that demand for recyclate remains high and is much higher than current supply. The main obstacle to meeting demand is thecollection and sorting of waste in sufficient volume and at a sustain-able cost.

The most successful individual TEPPFA programme in this respectis the WUPPI scheme in Denmark, where TEPPFA works closelywith municipal waste collection authorities. This ‘bottom-up’approach relies on personal contacts by TEPPFA officials and visitsto municipal waste operators. Under the scheme, PVC pipes,profiles, gutters and cladding are collected together at municipalwaste collection centres. Experience shows that this is a successfulapproach that can be replicated in other European countries.TEPFFA is now working on this.

Other Country-by-Country Highlights of the YearSweden and Finland: Collection was hampered by high collectioncosts. TEPPFA is aiming to reduce costs by following the WUPPIcollection model in Denmark.

The Netherlands: Pipe waste shows potential with favourable cost-volume ratios. TEPPFA will investigate further steps.

Germany: Following unexpected objections from the nationalcompetition authorities, TEPPFA was requested to put into place anew collection system that is expected to meet the regulators’concerns. TEPPFA is also encouraging municipalities to join thecollection system.

Belgium: There is a good cost-volume ratio via the Belgium-basedPVC recycling company Rulo NV. The initiative is being expanded toinvolve municipalities in the collection stream.

(*)TEPPFA - The European Plastic Pipes and Fittings Association, an EuPC sectoral association

PVC recycling at Rulo NV, Belgium.

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Austria, France and Italy: Research has shown that cost-volumeratios are currently insufficient to warrant independent pipe-recy-cling schemes. TEPPFA is therefore pursuing cooperation withproducers of other rigid PVC products such as profiles.

UK: TEPPFA has been preparing to start a collection and recyclingscheme in cooperation with other rigid PVC product representativesincluding involvement with the BPF-led synergistic project to identifybest practice for collection of demolition waste.

Priorities in 2004The main objective is to improve the financial viability of the collec-tion and recycling schemes. Countries with low volumes and highcollection costs will be encouraged to continue but with the aim ofreducing costs.

Roofing MembranesESWA – Project ‘Edelweiss’In 2003 the objective of recycling 25% (536 tonnes) of collectable,available PVC waste from roofing membranes was exceeded. Thistarget is based on waste availability studies undertaken by ESWA(*)

and validated by the external audit of KPMG. 544 tonnes were recy-cled using the capacity of AfDR (Arbeitsgemeinschaft für PVC-Dachbahnen-Recycling), the German mechanical cryogenic unit,owned and operated by several ESWA members.

New Collection SchemesGermany is by far the largest market for PVC roofing. Success inGermany is therefore crucial to meeting ESWA’s targets. To boostcollection, a new scheme was started in this country from June2003, in partnership with the waste management firm Interseroh(www.interseroh.de). The system makes collection as easy as possi-ble, using ‘big bags’ to collect the waste, and also features an incen-tive bonus for roofers and sales forces. Strong administrative andcommunications support is provided by the Industrieverband für

Kunststoff-Dach- und Dichtungsbahnen e.V. (DUD), the GermanAssociation for Thermoplastic Roofing and WaterproofingMembranes.

724 tonnes were collected in 2003, of which 564 tonnes were post-consumer waste. This represented a year-on-year increase of 30%and 54%, respectively.

The Recycling ProcessAll recycling of the collected volumes is taking place at AfDR(Abeitsgemeinschaft für PVC-Dachbahnen-Recycling) but the recycling capacity will not be sufficient in the future. Therefore, ascreening of several other processes was part of the Edelweiss studyconcluded in 2003. A number of technical trials were conducted.

Vinyloop®, which can deliver tailor-made recyclates, has beenselected as a prime long term solution. However, in view of the timing and awaiting the start-up of the dedicated Vinyloop plant atDreux, France, expected in 2006, alternative recycling routes arecurrently being considered. Large-scale tests for the recycling ofPVC roofing membranes are being undertaken at the Vinyloopcable recycling facility in Ferrara, Italy. For more information, please visit www.eswa.be.

Flooring The European PVC flooring producers, represented in EPFLOOR(*),

recycled 545 tonnes of PVC flooring in 2003, which represents a50% increase since 2001. EPFLOOR plans a similar increase for2004 using collection and recycling systems now identified.

Studies, Tests, Research & Development and Recycling OptionsWhilst developing new outlets for the recycling of flooring waste,EPFLOOR has focused on activating post-consumer PVC floorcollection by launching several pilot collection studies.

The R&D programme coordinated by EPFLOOR and involving theR&D departments of member companies and universities in

Waste collection using ‘big bags’.

Recycling of PVC flooring.

(*)ESWA - European Single Ply Waterproofing Association, an EuPC sectoral association (*)EPFLOOR - European PVC Floor Manufacturers, an EuPC sector group

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Belgium, the Netherlands and Germany has continued to develophigh value applications for PVC recyclate from flooring, Recinyl©,with the solvent based technology Vinyloop. The programme hasproven the feasibility of recycling in higher value applications suchas calendered and coated interlayer applications. It is alsoexpected that the programme will lead to a breakthrough in othercoating applications as well as in foamed applications for flooring.This will ensure sufficient outlets for the next Vinyloop recyclingplant which will treat PVC flooring waste, amongst others.

Meanwhile, tests have begun with other mechanical recycling part-ners (for example in Spain and the UK) in addition to the operat-ing PVC flooring recycling AgPR plant in Germany. EPFLOOR isalso negotiating with the Feedstock Recycling Plant RGS-90 forrecycling flooring from late 2004 onwards.

Collection SchemesThe collection scheme in Germany has been expanded. Moreovertests were organised with the waste collector Tönsmeier and witha joint collection project for roofing, pipes and windows.

Collection schemes in Austria and Switzerland have continuedtheir activities.

In the Netherlands, Retour Concept BV was appointed to studypotential waste collection.

In France, in the second half of 2003, SFEC (the French associa-tion for coatings, calendering, flooring and wall covering) starteda mapping and pilot collection project focused mainly on theregion of Paris and Western France in cooperation with flooringinstallers, demolition sites as well as public and private waste plat-forms. The project is expected to be completed by the end of firstquarter 2005.

Finally, in Belgium, EPFLOOR is involved in the implementation ofthe new Flemish Region law for the collection and recycling offlooring (resilient flooring such as vinyl, rubber and linoleum andcarpets and laminates).

Waste Management Pilot Projectsand Studies

Coated Fabrics EPCOATEPCOAT(*) operates within EuPC as the European coordinator forVinyl 2010 on the recovery and recycling of PVC coated fabric prod-ucts (such as tarpaulins, tents, marquees etc).

In 2002 EPCOAT initiated a study into the feasibility of contributingto the recycling targets of Vinyl 2010 with the collection of data andplanned test projects in Germany and France. This work acceleratedin 2003 with the following Vinyl 2010 studies, collection schemesand recycling projects involving coated fabrics:

StudiesSFEC Artificial LeatherArtificial leather is a major potential source of recyclable post-consumer waste: It is estimated that 65,000 tonnes a year of PVCartificial leather are consumed annually (excluding automotiveapplications which are covered separately by the EU’s End-of-LifeVehicles Directive). The study by SFEC, the French calendering andcoating association, explored the different markets of artificialleather goods.

The aim was to identify where and how to collect potentially recyclable homogeneous waste. The most promising collectiontargets appear to be the prefabricators – who have a source ofcollectable, clean waste – and end-of-life furniture.

Collection SchemesFerrari SAFerrari SA is a French manufacturer of membranes and coatedtextiles, actively involved in PVC recovery and recycling. Ferrari’srecycling activities fall under its Texyloop® brand (see below).

Ferrari worked with EPCOAT in 2003 to obtain information fromcustomers about the PVC coated fabric waste stream. Specifically,the work aimed to assess the volume of waste currently taken todisposal facilities or incinerated and the volumes at end-of-life thatcould be collected.

Ferrari initiated a collection scheme in October 2002. Although thisprimarily operates in France, the aim is to extend it to other coun-tries. The scheme uses ‘big bags’ – produced by fabricators them-selves – into which the waste is loaded. In the 15 months toDecember 2003, 91 tonnes of waste had been collected and storedawaiting start up of the Texyloop industrial scale recycling plant.

For further details please see www.ferrari-textiles.com

(*)EPCOAT: EuPC PVC Coated Fabrics Sector Group

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Industrieverband Kunststoffbahnen (IVK)The IVK (Plastics Foils Association) in Germany is to start a trialcollection project involving 30 prefabricator sites and four coatedfabric producers in 2004. The project will be in cooperation with amajor waste management company.

RecyclingFerrari - TexyloopIn 2001, Ferrari constructed a laboratory pilot recycling unit for PVCcoated fabrics. Known as Texyloop, the technology used is based onthe Vinyloop process.

Trials of the process continued in 2003 with further technical stud-ies and the development of a larger scale pilot plant near Lyon(France), to be operational in 2004-2005.

This experience is essential to the planned construction of an indus-trial scale plant at Tavaux (France) with a capacity of 10,000 tonnesper year to prepare and then treat PVC coated fabric waste.Investment in the two sites is almost e20 million, with co-fundingof e3 million from Vinyl 2010.

For more information about the project, please visit www.texyloop.com.

FriedolaThe Friedola company, a German firm which produces coatedfabrics, decided in 2003 to renovate and expand an existing plant totreat the waste from the Industrieverband Kunststoffbahnen (IVK)project. The technology involves the mechanical shredding andcompacting (or agglomeration) of post-consumer waste fabrics intonew PVC products. The recyclate can then be re-used in tarpaulinsand artificial leather.

The objective for 2004 is to invest and upgrade the existing machin-ery and control systems at Friedola.

Cooperation with ACRR The associations represented by Vinyl 2010, theplastics industry resin producers (APME) and recy-clers (EuPR) signed, in September 2001, aPartnership Agreement with the Association ofCities and Regions for Recycling (ACRR), with theobjective of improving the recycling of plastic

waste collected by local authorities.

An important and increasingly obvious weak point in the plasticsrecycling loop is collection. There are four main sectors generatingplastic waste that can be managed by the local authorities: house-

holds, the agricultural sector, trade and small and medium-sizedenterprises (SME), and the construction and demolition (C&D)sector.

Pilot projects were completed in Catalonia and in the region of Porto.

The Catalonia project focused on the demolition sector. Althoughactual quantities of plastic waste collected were low, the projecthas provided very useful lessons: Demolition projects, especiallyof relatively old buildings, should not be the prime focus in viewof the low volume of plastics that were used when built and of thecontamination resulting from the standard demolition practices.

The Porto project covered the trade, SME and C&D sectors. Thetrade and SME sector has proven a significant source of plasticwaste thanks to the extension and promotion of existing drop-offsites and door-to-door collection. According to informationprovided by LIPOR, the local authority in charge of wastemanagement in the Porto region, approximately 10 tonnes ofplastic waste was collected between December 2002 and October2003, together with 34 tonnes of paper and cardboard. The C&Dpart focused on small construction companies. During 2003waste collected from such firms resulted in the additional collec-tion of almost 5 tonnes of plastic waste, of which 0.5 tonnes wasPVC, as well as close to 15 tonnes of other materials (e.g. metals,wood and paper). This confirmed that packaging material is themost abundant source of plastic waste on construction sites.

PVC used in construction

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Vinyl 2010, the plastics industry and recy-clers as well as ACRR members in Italy,Spain, Portugal and Belgium and theEuropean construction and demolitionindustries have presented to the EuropeanCommission a follow-up project to

research and promote the collection and recycling of plastic wastefrom buildings. The Commission has granted funding under itsFinancial Instruments for the Environment, or LIFE, programme.The project formally started in December 2003 and will run untilmid-2006.

The project begins with a thorough evaluation of the current situ-ation at local level, including the regulatory framework. At a laterstage it will entail 20 to 30 pilot projects covering a wide spectrumof activities (construction, renovation and demolition) and willprovide first-hand experience on the technical and economicaspects of the collection and recycling of plastics waste, includingthe outlets for the recyclate.

Vinyloop FerraraThe Vinyloop plant in Ferrara,Italy, went on stream inFebruary 2002. In 2003, theplant treated 2,199 tonnes ofwaste, which was short of fullcapacity due to technical diffi-culties. These were addressedthrough the installation of asecond filtration unit.

At the same time, workcontinued on trials andmodifications to runningconditions with the aim ofoptimising performance andincreasing capacity.

The plant is currently runningat its nominal capacity.

However, there are still plans to install a second stripping unit.This will help achieve the 2004 plant target of 7,500 tonnes.

For more information please visit www.vinyloop.com.

Vinyloop DreuxPlans are progressing to construct a second plant using Vinylooptechnology and benefiting from the technical knowledge and expe-rience of the Vinyloop Ferrara plant. The new plant will be located inDreux, France.

The Dreux project is currently sponsored by a partnership of fourFrench companies – Récupération Industrielle de ProduitsSidérurgiques (RIPS) and MTB Recycling SA (both of which recyclecables), as well as Eurocompound France (a plastics recycling firm)and Solvin France (a PVC resin producer). The results of the initialfeasibility study will be presented in mid 2004 with constructionscheduled to start in 2005 and entry into operation the following year.

This new Vinyloop facility is projected to recycle 42,800 tonnes ofwaste that is currently sent to landfill and of which 29,000 tonnesare post-consumer waste. The waste stream will be composed ofcables, roofing membranes, floor coverings, windows, blisterwastes and polymeric scraps.

Total investment is estimated at e47 million. Of this, Vinyl 2010intends to provide e10.7 million as a loan, with the first instalmentof e1.7 million, in 2004. Financing is expected to be aided byEuropean and local authority grants.

Redop ProjectRedop – derived from ‘Reduction of iron ore in blast furnace plantsby plastics from waste’ – is a process that targets the mixed-plasticssegment of municipal solid waste (MSW).

The chlorine level in such waste streams is less than is normallycontained in the ‘PVC-rich’ waste streams used for feedstock recy-cling processes, but is too high for some other uses. The purposeof the Redop technology is to obtain a commercially viable productcapable of replacing coal in steel production. An important andnovel step is the de-chlorination of the mixed-plastics waste by atechnology developed and patented by DSM Research.

After initial promising results on a bench scale, it was decided inearly 2002 to go ahead with the production of about 10 tonnes ofRedop pellets to conduct trials in a blast furnace on a commercialbasis. Suitable equipment was identified at DSM’s Geleen facilitiesin the Netherlands and the required modifications were carried outduring the second half of 2003. The production of the materialstarted in November 2003 but was slowed down by some unfore-seen difficulties. Injection trials on an industrial scale at the steelplant of Corus in the Netherlands will take place as soon as theproduction is completed and the product evaluated.

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Dow/BSLSince 1999 Dow has operated a commercial feedstock recycling plant at its Schkopau site near Leipzig. The plant technology isproven, robust and able to manage large quantities of many different types of widely used PVC waste products.

A prerequisite for practical success is the management of logistics and pre-treatment of the PVC waste. In 2002-2003 the Germanwaste management company ASCON GmbH undertook trials as a ‘clearing house’ between the suppliers of PVC waste and the plant,in a field test to provide important, quality statistical data, including the economics for managing the logistics. In the trial, 1,027tonnes of PVC were successfully processed and the recovered chlorine used on site for new VCM/PVC production. The main resultsare summarised below.

The trial has given information about the specific handling requirements of PVC waste, and important intelligence about financialaspects of this type of recycling. Cost competitiveness is now the key criteria when deciding on larger quantities of PVC waste to beprocessed at this plant.

Breakdown of PVC Waste Streams (total 1,027 tonnes)

Plastisols

Cables

Coated Fabrics

Window Profiles

Flooring

%7%

41%

39%

7%7

6%

Breakdown of Clearing House Costs (total e459,200)

Management

Processing Dow/BSL

Pre-Treatment

Transports

7%7%

%22%

%16%

55%

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Light ConcreteThe purpose of this feasibility study is to evaluate whether PVCwaste from building demolition can be recycled as an aggregatefor making light concrete – and thus re-used in buildings.

Research into collection has so far focused on the area aroundRome. It showed that there is an abundance of available plasticwaste including PVC waste in and around the Italian capital.

Preliminary tests showed light concrete made from recycled PVCcould be comparable in technical specifications to other similarproducts, e.g. waste polystyrene as currently used in Italy.

The feasibility study is due for completion by April 2004. Ifpreliminary, positive conclusions are confirmed, the project willmove on to the following phases:

- Obtain compliance with official technical standards and obtainthe required regulatory permits;

- Conduct a field test for collection of PVC waste, manufactureand marketing of the recycled product.

Given the early stage of the project, it is too early to estimate theimpact of this process on volume.

RGS-90/StigsnaesRGS-90 is the owner of the Stigsnaes hydrolysis plant.

Vinyl 2010 signed a funding contract in July 2003 with an initialpayment of e1 million in 2003 and e3 million in 2004. The proj-ect also benefited from grants of the EU’s LIFE programme.

Following two successful series of technical trials, the plant isbeing upgraded to 50,000 tonnes per year capacity with commis-sioning scheduled in the fourth quarter of 2004. RGS-90 isactively promoting the plant and started storing PVC waste. Thegate fee for PVC waste processing including pre-treatment isquoted at e200 per tonne.

In September 2003, RGS-90 also opened a major plant on the siteto produce the sandblasting material trademarked as ‘Carbogrit’.The plant uses waste water sludge as raw material and plans in duecourse to accept the solid fraction from the above PVC recyclingplant.

Novel Gasification ProcessesAn increasing range of feedstock recycling technologies is availablefor treating both ‘PVC rich’ and mixed plastics waste streamscontaining normal percentages of PVC. Vinyl 2010 pays close atten-tion to these as potential options for waste management in additionto projects already under way.

During 2003 an ECVM expert team visited and assessed processesin Europe and Japan against the principal criteria of practical expe-rience, cost competitiveness and environmental impact. The teamidentified novel ‘ready to go’ gasification processes capable of treat-ing varying percentages of PVC waste products. Further effort isneeded to assess their economics and to compare them with exist-ing facilities in Europe.

Recovinyl InitiativeRecovinyl is a new consortium that willfacilitate the collection, dispatching andrecycling of post-consumer PVC waste. Itaddresses the challenge of ensuring asteady, maximum supply of post-consumer PVC waste for recycling by

mechanical processes. Such consistency is important for compa-nies that have invested in plant and machinery.

Following a detailed study to identify and understand the businessof PVC mechanical recyclers, Recovinyl was incorporated as acompany in June 2003. It benefits from the practical experience ofmajor shareholder-recyclers Rulo (Belgium), Swerec (Sweden),Tecni-Plasper (Spain), De Hoeve (Netherlands), AfDR (Germany)and Vinyloop Ferrara SpA (Italy) and is open to further partners.

Different legal frameworks between European countries have signif-icantly complicated the preparation of this ambitious project. Theplanned launch of the multilingual Recovinyl e-business platformand website has been rescheduled to provide further time todevelop the fundamental business plan and to agree on operatingprinciples. The website and e-business platform are expected tocome into operation in 2004.

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UK Mixed PVC Recycling ProjectStarting from a relatively low base, the British Plastics Federation(BPF) is seeking to identify the most promising opportunities forachieving higher volumes of post-consumer PVC waste recycling in general.

The BPF has commissioned consultants to look at the relativemerits of various recycling technologies in a UK context, and toexamine potential commercial opportunities with a view to produc-ing a formal business plan to increase PVC recycling.

Research is showing that the best opportunities in the UK, whenvolume and economic factors are taken into consideration, lie inPVC window and flooring waste. Wall coverings also provide excel-lent opportunities and their availability as well as their potentialrecycling technologies are being investigated at present.

WRAP (the Waste Resource Action Programme) established by theUK Government has provided a £390,000 (e565,500) grant toBradford University in order to conduct comprehensive researchinto options for PVC recycling in the UK.

For more information please visit www.recyclepvc.com.

In 2004, the UK Project Team will continue developing economicand technical evaluations. Work is being undertaken on behalf ofthe BPF by specialists Axion Recycling. The WRAP-funded workconducted by Bradford University will conclude in March 2004.The results obtained will help provide the foundations of a viable,commercial operation'

Developments of Municipal Incineration

Processes: Halosep-Watech ProcessIn October 2003, Vinyl 2010 signed a funding contract with WatechA/S, now part of the RGS-90 Group. The objectives are to test itsHalosep-Watech process under pilot plant conditions and toassess the re-use potential of the recovered fractions for closing orminimising disposal options. The process uses aqueoushydrochloric acid to extract and separate chlorides and heavymetals from the neutralisation residues of municipal solid wasteincinerators (MSWI).

Work has started on a mobile pilot plant and trials at MSWI plantswith ‘dry’ and ‘semi-dry’ flue gas cleaning systems are scheduled tostart in the second half of 2004.

Other Projects

Eco-efficiency of Recycling Options PE Europe GmbH – an off-shoot of the Institute for PolymerTesting and Polymer Science (IKP) of the University of Stuttgart– completed an eco-efficiency study in 2003. Entitled "PVCRecovery Options: Ecological and Economical System Analysis",the study investigated various treatment options for mixed cable waste.

Landfill was used as a base case for comparison with Vinyloop,two feedstock recycling technologies (Stigsnaes and Watech)and a modern municipal solid waste incineration with energyand HCl recovery (MVR Hamburg).

The study concluded that all four recovery options are preferableto landfill from an eco-efficiency point of view. It showed,however, that selection of a recovery technology must take intoaccount specific national or even local conditions because ofdifferences in the applied environmental policies. The prelimi-nary conclusions were confirmed by a peer review and the studywas presented and published in 2003. Possible follow-ups arebeing considered in Denmark and in the UK.

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The Monitoring CommitteeTo involve stakeholders and policy makers more

closely, Vinyl 2010 has established an independ-

ent committee to monitor implementation of

the PVC industry’s Voluntary Commitment.

The Monitoring Committee meets regularly (at least twice ayear) and currently includes representatives from theEuropean Parliament, the European Commission and TradeUnions. NGOs have been invited to join the committee buthave currently no representative. The committee has askedthe Chairman, Professor Alfons Buekens of the FreeUniversity of Brussels (VUB), to further investigate thepossibilities with NGOs.

The first meeting was held on June 11, 2003, in the officesof the European Parliament in Brussels. Minutes areavailable on the Vinyl 2010 website.

MembersProfessor Alfons Buekens, (Chairman), VUB(1)

Mrs. Conceptio Ferrer, Member of the EuropeanParliament, Industry CommitteeMr. Bernd Lange, Member of the EuropeanParliament, Environment Committee(2)

Mr. Patrick Hennessy, Director, EuropeanCommission, Directorate General EnterpriseMr. David-Grant Lawrence, Director, EuropeanCommission, Directorate General EnvironmentMr. David Thompson, Chairman, Vinyl 2010Mr. Joachim Eckstein, Vice Chairman, Vinyl 2010 Mr. Alexandre Dangis, Managing Director, EuPCMr. Jean-Pierre De Grève, Secretary General, Vinyl 2010Dr. Brigitte Dero, Secretary General, ESPAMr. Oraldo De Toni, Political Secretary, EMCEF(3)

Mr. Reinhart Reibsch, General Secretary, EMCEF

Working Together

Notes:(1) VUB: Free University of Brussels (2) Mr. Lange succeeded Mr. Guido Sacconi, Member of the European Parliament,Environment Committee, in September 2003(3) EMCEF: European Mine Chemical and Energy Workers Federation

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nt,

The Debate on SustainabilityThroughout 2003, Vinyl 2010 played an active role in

the debate on sustainability at various events across

Europe. These included:

- The Citizen’s Parliament on Sustainable Consumption organisedby the Association of Cities and Regions for Recycling (ACRR) inMarch, where Vinyl 2010 representatives met in Brussels withregional and municipal officials from all over Europe.

- The PLAST International plastics and rubber exhibition held inMilan in May, where Vinyl 2010 held a press conference about theassociation’s recent milestones and achievements.

- The Green Goals for Business conference held in Brussels in June2003 during the European Commission’s Green Week, whereSecretary General Jean-Pierre De Grève gave a speech on“Enterprise and Government: Working Together TowardSustainability”.

- The Green Procurement Conference, in September in Gothenburg.

- Discussion with The Natural Step (TNS - www.naturalstep.org) inthe UK to extend their environmental challenges model by a char-ter covering social and economic aspects of PVC.

Social Dialogue: Challenges and theRole of Vinyl 2010 in EUEnlargement

Voluntary Commitments are an effective tool for advancing thecause of Sustainable Development. This is even more pertinent inthe context of an enlarged EU with 25 or more member states.Purely regulatory approaches are unlikely to be fully effective, asthey will not answer market diversities, local financial constraintsor consumers’ behaviour. Furthermore, Voluntary Commitmentsare efficient in transferring best practice to the East without becom-ing enmeshed in a complex legislative process.

Vinyl 2010 held meetings during 2003 in the EU accession coun-tries, one of which involved Trade Unions with the objective of rais-ing health, safety, and environmental standards to higher levels and to harmonise sustainability goals.

Two PVC producers from Central Europe, Spolana and Novacké,have already joined ECVM as full members, demonstrating theirwillingness to make progress towards sustainability. Their positionwith respect to EU regulations and to the ECVM Charters wasinvestigated during the course of 2003.

Together with the Unions, actions for improving HSE standardshad already been initiated by these companies and further actionsare underway to achieve full compliance with EU regulations aswell as the desired convergence of the industry standards.

The aim of Vinyl 2010 is also to obtain a gradual enlargement of theVoluntary Commitment to the new EU Member States, possibly by2005, even if there are serious difficulties due to the historicalstructure of the PVC industry in some countries and the stronginvestment needed. A dedicated conference is planned inBudapest in April 2004 to further discuss the issue with CentralEuropean PVC manufacturers and converters.Vinyl 2010 Board Members

Mr. David Thompson

Chairman

Mr. Joachim Eckstein

Vice-Chairman

Mr. Jean-Pierre De Grève

Secretary General

Dr. Michael Rosenthal

Treasurer

Mr. Alexandre Dangis

Board Member

Dr. Brigitte Dero

Board Member

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The expenditure of Vinyl 2010, including EuPC and its members,amounted to e4.4 million in 2003, compared with e4.5 million theyear before. Expenditure on projects is expected to substantiallyincrease in 2004.

The slight decrease in 2003 expenditure reflects greater cost effi-ciency and the postponement of two projects:

- A planned investment of e1.3 million as subsidy for the TexyloopPilot Plant was postponed until the first quarter of 2004. - Likewise, the ERPA/CIFRA mechanical recycling project waspostponed to 2004. The subsidy allowance for this project,however, was substantially increased from the initially plannede100,000 to e500,000 to be paid out in 2004 and 2005.

The 2003 figures were audited by KPMG.

VINYL 2010 WASTE MANAGEMENT PROJECTS

figures in 1,000s of e

Vinyloop Ferrara 0 1,840

Ferrari Texyloop 0 0

EPFLOOR 524 245

EPCOAT 122 363

UK mixed PVC waste project 106 0

ESWA - Edelweiss 846 172

2.15 NKT Halosep 8 0

RGS-90/Stigsnaes 1,001 58

Dow/BSL : ASCON 109 181

REDOP 0 0

ACRR 0 145

Eco-efficiency study/LCA 53 94

EuPR 100 229

Recovinyl SA 100 0

Light concrete Italy 24 0

TEPPFA 669 740

EPPA 724 443

ERPA/CIFRA 0 0

Total 4,386 4,510

Total expenditure in

2003including EuPC

and its members

Total expenditure in

2002including EuPC

and its members

Vinyl 20

10 progress report 20

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Financial Report

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Verification Statements

KPMG Certification

KPMG Certification of Expenditure

Cvba Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren - Reviseurs d'Entreprises ScrlReport of the Auditor on the statement of supported charges for Project Vinyl 2010 during the period between 1st January 2003 and 31st ofDecember 2003.

We are reporting to you on the completion of the mission, which you have entrusted to us. We have performed a verification of thetable presenting the supported charges for the different projects of Vinyl 2010, as included in the Vinyl 2010 Progress Report 2004.

Total of supported charges related to the different projects of Vinyl 2010 amounts to e4,386,592.74.

The persons responsible for establishing the table presenting the supported charges for the different projects of Vinyl 2010 haveprovided us with all explanations and information which we required for our audit. We examined evidence supporting the amountsin the statement. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the statement as per 31st December 2003 presents fairly the position of supported charges for the different projectsof Vinyl 2010 during the period between 1st January and 31st of December 2003.

Klynveld Peat Marwick Goerdeler Bedrijfsrevisoren - Reviseurs d'Entreprises Scrl, represented by

Dominic Rousselle, Partner

Brussels, March 9, 2004

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EPPA Windows 4,817 3,407 (b)EPFLOOR Flooring 545 (a) NAESWA Roofing membranes 544 536 (c)TEPPFA Pipes & fittings 6,150 5,068 (d)Vinyloop Mainly cables 2,199 NA

NA Not applicable(a) Amount calculated for the 15 EU member states plus Switzerland(b) This amount of 3,407 tonnes is based on national sales statistics gathered from member associations, a study undertaken by Mr. Berndtsen and expert

estimations(c) This amount of 536 tonnes is based on sales estimations of the total market between 1980 and 2000, gathered from member companies and experts(d) This amount of 5,068 tonnes is based on the EuPC model, updated in 2002

Project Type of PVC post-consumer waste Tonnage recycled

25 % of the available collectablewaste in the EU of the 15

Voluntary Commitment target in tonnes

KPMG Certification

KPMG Certification of Tonnages and Fulfilment of Sectoral Voluntary Targets

Cvba Klynveld Peat Marwick Goerdeler Assurance and Advisory Services Scrl Business Unit Environmental ServicesReport of the independent expert concerning the audit of the tonnages post-consumer PVC waste collected and recycled in 2003 by the sectorgroups EPPA & EPFLOOR of the EuPC, by the sector associations ESWA & TEPPFA of the EuPC and by the subsidised recycling plant VinyloopFerrara, during the period between 1st January 2003 and 31st of December 2003.

In accordance with the assignment, which was entrusted to us by Vinyl 2010, we give an account of our audit of the following tonnagesfor the different projects of Vinyl 2010 and the fulfilment of the Voluntary Commitment objectives mentioned in the Vinyl 2010 ProgressReport 2004.

The conclusions of this audit are summarized in the table here below:

The persons responsible for establishing the table presenting the supported tonnages for the different projects of Vinyl 2010 haveprovided us with all explanations and information which we required for our audit. Based on our review of the information provided, webelieve that all waste that was taken into account was Non regulated post-consumer PVC waste, according to the Vinyl 2010 definitionof Non regulated post-consumer PVC waste and that we have not recognised any elements which are of nature to influence significantlythe presented information.

Cvba Klynveld Peat Marwick Goerdeler Assurance and Advisory Services Scrl Business Unit Environmental Services.Represented by Ludo Ruysen, Partner

Brussels, March 11, 2004

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DNV Verification Statement

DNV Consulting is part of DNV, an independent foundation established in 1864 with the objective of

safeguarding life, property and the environment.

DNV Consulting was commissioned by Vinyl 2010 to provide an independent verification of the 2004 Progress Report.

The objective of the verification was to validate statements made in the report. This verification statement repre-sents our independent opinion. DNV Consulting was not involved in the preparation of any part of this report or thecollation of information on which it is based.

Verification Process The verification consisted in checking whether the statements in the report give an honest and true representation of Vinyl 2010’sperformance and achievements. This included a critical review of the scope, balance and interpretation of presented statements.

The verification process included the following activities:- Desk-top review of project related material and documentation such as plans, agreements, minutes of meetings, presentations

and more;- Communication with relevant Vinyl 2010 personnel responsible for collating and writing various parts of the report, in order to

discuss and substantiate selected statements.

The following areas of the 2004 Progress Report were excluded from the verification scope:- The underlying data and information on which the desk-top review documentation is based;- The table "European Production Data" presenting tonnes of stabiliser systems sold and the section “Progress on Lead Substitution”;- The presented tonnages and fulfilment of sectoral voluntary targets (verified by KPMG);- The Financial Report (verified by KPMG).

Verification ResultsIn our opinion, the 2004 Progress Report is a fair and honest representation of Vinyl 2010’s performance and achievements in 2003.It is particularly encouraging to note Vinyl 2010’s achievement of the 2003 target to recycle 25% of collectable, available PVC wastefrom window profiles, roofing membranes, pipes and fittings.

Whilst recognising Vinyl 2010’s achievement of targets set out in the Voluntary Commitment of October 2001, we stress that thereare challenges in the future, which Vinyl 2010 has identified and is addressing. We would endorse this proactive approach and, basedon the verification process, consider important challenges to include: improving the financial viability of collection and recyclingschemes, ensuring there is sufficient recycling capacity for collected volumes, as well as taking into consideration the consequencesof the enlargement of the Voluntary Commitment to the new EU Member States.

Høvik, 11 March 2004

Kristin MacBeath Christen M. Heiberg

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Vinyl 2010 progress report2004

PVC helps society – here are some points you

might like to know

What is PVC?Polyvinyl chloride or ‘PVC’ is a member of the ethylene family ofpolymers. Made from salt (57 per cent) and oil/gas (43 per cent),it was first produced commercially in the late 1920s and is thesecond largest commodity plastic. Most of its very numerousapplications are for long life products.

What is the Voluntary Commitment?The Voluntary Commitment of the European PVC industry chain isa 10-year plan. It progresses the industry toward sustainability onmany fronts: by improving production processes and products,investing in technology, minimising emissions and waste andboosting collection and recycling. The scope of these activities isvery large and it is the first time in Europe that an entire industrychain, in close relation with Trade Unions represented by EMCEF,has taken such a step.

What is Vinyl 2010?Vinyl 2010 is the legal entity set up to provide the organizationaland financial infrastructure to manage and monitor the actionsundertaken as part of the Voluntary Commitment. It groupsEuropean vinyl resin manufacturers, plastic converters andproducers of stabilisers and plasticisers.

The Four Founding Associations are:the European Council of Vinyl Manufacturers (ECVM), theEuropean Plastics Converters (EuPC), the European Council forPlasticisers and Intermediates (ECPI) and the EuropeanStabiliser Producers Association (ESPA).

What is the Role of Vinyl 2010 inSustainable Development?Vinyl 2010 advances the PVC industry toward a better sustain-ability profile by implementing the Voluntary Commitment.This is not just about targets and commitments. It necessitatesa change of approach and understanding at all levels andacross the three pillars of economic prosperity, environmentalprotection and social well being.

Why is PVC Important to Society?PVC products make life safer and more comfortable. PVC isused in areas as diverse as construction, automotive, cabling,luxury goods and medical devices, to name just a few. MostPVC applications are long lasting – up to and over 60 years –and they make good use of raw materials and prevent unnec-essary depletion. In Europe the industry includes more than23,000 firms and provides some 530,000 jobs. It is also adynamic sector that facilitates innovation and invention:dynamism that also aids true Sustainable Development.

Frequently Asked Questions About PVC

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The European Council of Vinyl ManufacturersAvenue E Van Nieuwenhuyse 4 B-1160 Brussels BelgiumTel. +32 (0)2 676 74 41Fax. +32 (0)2 676 74 47www.ecvm.org

The European Plastics ConvertersAvenue de Cortenbergh 66, box 4 B-1000 Brussels BelgiumTel. +32 (0)2 732 41 24Fax. +32 (0)2 732 42 18www.eupc.org

The European Council for Plasticisers and IntermediatesAvenue E Van Nieuwenhuyse 4 B-1160 Brussels BelgiumTel. +32 (0)2 676 72 86Fax. +32 (0)2 676 73 01www.stabilisers.org

The European Stabiliser Producers AssociationAvenue E Van Nieuwenhuyse 4 B-1160 Brussels BelgiumTel. +32 (0)2 676 72 60Fax. +32 (0)2 676 73 92www.ecpi.org

Members of Vinyl 2010:

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Vinyl 2010Avenue E Van Nieuwenhuyse 4, box 4 B-1160 Brussels BelgiumTel. +32 (0)2 676 74 41Fax. +32(0)2 676 74 47

Registered office: Avenue de Cortenbergh 66, box 4 B-1000 Brussels Belgium