Recycled Papermaking and the

Impact of Changes in the Processing of

Wastepaper on Sustainability

Gary Myhrman, WestRock

St. Paul Mill Engineering Manager

RAM SWANA Conference

October 16, 2018

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Building a paper and packaging leader

~$16.3 billion(1)

~45,000employees

~300 facilitiesAmerica, Europeand Asia-Pacific

#1 North America Consumer Paperboard

#2 North America Folding Carton

#1 North America Merchandising Displays

#2 Beverage multi-pack packaging

#2 North America Containerboard

#2 North America Corrugated Packaging

#2 Brazil Corrugated Packaging

#1 India Containerboard

Corrugated Container*

ContainerboardMills*

Beverage

Folding Carton

Merchandising Displays

Multi Packaging Solutions

RTS

Consumer Mills

Note: *Includes North America, Brazil and India; pie pieces not to scale

(1) FY2018 sales. Source of rankings: Company and market research. Rankings are based on capacity.

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We don’t just claim to be sustainable – we live it

2025 Goals

We are committed to providing our stakeholders with regular and transparent

reporting on our progress against each goal

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WestRock St. Paul Mill (est. 1908) 2250 Wabash Avenue

365 employees (82% Union)

$28 Million in Payroll

$102,000 avg. wage / benefit,

$2.2 million in state & local taxes

Produces 369,000 tons of 100%

certified recycled fiber annually

• Coated Recycled Board

(CRB)

• Corrugated Medium

Mill receives a majority of the

paper processed by Eureka

which includes the curbside

collection from St. Paul and

Minneapolis.

Two, seven unit, multi ply former paper machines:

• Produce grades from 69 lbs to 128 lbs / 1000 square feet, or .016” to .028” thick paper board.

• Clay Coated for appearance and printability

• Product is the packaging substrate for food and consumer products containers.

Coated Recycled Board Mill (CRB)

Corrugated Medium Mill

Two, Single Ply Fourdrinier Paper Machines

Produce 23 to 40 lbs. / 1000 square feet.

Product is Produced Flat and Sold to Converting Facilities Where it is Fluted and Glued to the Inside and Outside Liners.

Paper Making Process

•Waste Paper Collection, Staging and Storage• Loose • Baled

•Stock Preparation

•Paper Machines

Stock Preparation Cleaning Strategy• Remove Prohibitives in their Largest Form • Remove Prohibitives as Early in the Process as Possible to Minimize

Prohibitive Processing Degradation• Prohibitive Removal Methodology is Based on

• Density • Lights• Heavies

• Size• Shape• Flexibility

• Consistency is Lowered as Stock Progresses Through the Cleaning Process to Maximize the Cleaning System Efficiency. The Lower the Consistency, the Higher the Pumping Energy Requirements for a Given Tonnage.

• Recover as Much Usable Fiber as Possible- Cascade Reject Cleaning Streams from Primary to Secondary, to Tertiary and Quaternary Levels.

Hydrapulper

Section View of Hydrapulper

Pulper

Hydrapulper in Operation

Pulper Detrashing System

Grapple

Trashwell

Detrasher

Trashwell Grapple

Detrasher

Light Rejects Discharge

Defibering Rotor

Inlet

Heavy Rejects Accepts

Detrasher Drum Screen Rejects

Centrifugal Separation

Top &

Bottom

Valves

Elutriation

Section

Cyclone

Area

Junk Trap

Centrifugal Cleaning

Centrifugal Cleaner Rejects

Pressure Screening

• Coarse Screening-• Medium Consistency; 3.25% Fiber By Weight; .078” Holes

• Primary

• Secondary

• Fine Screen-• Low Consistency; 1.8% Fiber By Weight; .010-.012” Slots

• Primary

• Secondary

• Tertiary/Quaternary

Pressure Screen

Pressure Screen Operation

Slotted Screen Cylinder

Secondary Coarse Screen Rejects

Stock Thickening and Water Recovery

Paper Forming Process

Pressing

Dryer Section

Waste Paper Historical Perspective• Prior to Curbside Collection, Prohibitives and Outthrows were 3.5 % of

feed.

• Curb side collection started in the early 90’s Due to Disposal and Landfill Challenges.

• Studies of Curbside, Household Generated Waste Paper Indicated Prohibitives and Outthrows as High as 6%.

• Wastepaper Contaminant Concerns Were Increases in: • Hot Melt Glues• Ash, Coatings

• $11.5 MM Upgrade Performed Based on 6% Prohibitives and Outthrows.

• Current Prohibitives and Outthrows in Mixed Paper are in Excess of 10%.

• Since the Initial Project Numerous System Upgrades have been Executed to Minimize the Impact of Increases in Prohibitives.

Current Challenges Created from Waste Paper Prohibitives

• Glass• Accelerates Equipment Wear and Reduces Equipment Life• Compromises Equipment Functionality and Efficiency• Reduces Reliability Increases Maintenance Costs • Reduces Throughput Capacity and Recycled Paper Demand• Increases Energy Consumption

• Plastics• Reduces Cleaning Equipment Capacity• Reduces Pump Capacity• Increases Energy Consumption

• Hot Melt Glues• Impact to Paper Machine Runnability and Finished Product Quality (Print Defects)

• Waste Paper Evaluation • Labor Intensive and Time Consuming

Processing System Impacts of Increased Levels of Prohibitives in Waste Paper

• Reduced Recycling Processing Capacity• Increased Power Consumption• Reduced Equipment Life• Increased Maintenance and Operating Costs• Increased Disposal Cost• Increased Capital Cost• Decreased Yield (Increased Shrink)• Increased Water Usage• Increased Operating Costs from Staffing Incoming Quality Inspection• Sustainability Set Backs

• Electrical Energy• Thermal Energy• Water Usage

Impact of Increased Prohibitives and Outthrows on Throughput

• The Higher the Level of Prohibitives and Outthrows in the Wastepaper, the Lower the Volume of Wastepaper can be Recycled Due to the Impact on Equipment Processing Capacity.

• A 1% Nominal Increase in Prohibitives can Reduce Throughput by as Much as 5%.

Prohibitives Fouled Hydrapulper

Cleaned Hydrapulper

Increased Power Consumption• The Higher the Level of Contaminants in the Wastepaper, the Higher

the Power Consumption of Cleaning Equipment.

• Adding or Modifying Process Equipment Usually Requires Increasing Motor Sizes:

• Upsizing Pumps to Run More Open Impeller Designs with Lower Vane Count Impellers Reduces Pump Efficiency, and Increases Power Requirements.

• Replacing Standard ANSI Pumps with Trash Pump Designs Increases Power Requirements.

• Adding or Upgrading Equipment:• Centrifugal Cleaning

• Detrashing

• Screening

Impact on Pumping EfficiencyStandard ANSI Pump Cutaway View

Gap Between Rotor and Volute Suction Side Plate is .020”

Rotor

Volute Suction Side Plate

Impact on Pumping EfficiencyRecessed Impeller Trash Pump Cutaway View

Gap Between Rotor and Volute Suction Side is 3-4” Reducing Pumping Efficiency by 30-40%

Rotor

Volute Suction Side

Reduced Equipment Life

• Increased Levels of Prohibitives, Primarily Glass, have Significantly Reduced Equipment Life:

• Pulper Rotors and Extraction Plates• Centrifugal Cleaner Heads• Pressure Screen Rotors and Baskets• Pumps, Pipes, Valves and Fittings

• Use of High Chrome and Hastelloy Components Has Offset Some of the Life Degradation, but Only Partially and at a Significant Cost.

Reduced Equipment Life

6 Weeks of Service From a Schedule 40, 316 Stainless Steel Pipe Fitting

Increased Disposal from Higher Prohibitives Loading

• Increases Landfill Loading

• Adds to Disposal Costs

• Decreased Yield

• Increased Water Usage

Increased Capital Costs

• Capital has been Spent to Address the Increase in Prohibitives, Restore Throughput, Quality and Reliability.

• Upgrades include• Rejects Handling and Water Recovery (Three stages)

• Liner Cleaning Upgrade

• Detrashing Upgrade- Third Phase Being Installed in 2019

• Medium Density Cleaning Upgrade

• Tertiary / Quaternary Slotted Screen Upgrade

Sustainability Challenges

• Electrical Energy• In the Last Three Years 325 hp Added for Equipment to Improve

Removal of Prohibitives.

• Current Plans are to Add Another 1200hp for Improved Prohibitive Removal Capabilities in the Next Three Years.

• Landfilling and Yield• The mill currently landfills 150 tons per day of rejects.

• Thermal Energy

Current Initiatives

• Increased Incoming Quality Inspections• Created New Incoming Waste Paper Quality System

• Increased Inspection

• Tracking

• Supplier Collaboration

• Capital Projects-2019• System Upgrades of Existing Detrashers, Reject Cleaning and Processing

• Pump Upgrades

Future Initiatives

• Capital Projects Currently Planned• Multi Stage High Density Cleaning Upgrade • Coarse Screening Upgrade • Rejects Handling Upgrade• Forward and Reverse (Centrifugal Cleaners) Liner Cleaning

Upgrade

• These Capital Projects will add 1200 HP of Additional Power Over the Next Three Years for Improved Cleaning Capability.

• The Associated Impact of this Additional Power is an Estimated 5,300 Tons Per Year of CO2.

WestRock Sustainability Goals

• Greenhouse Gas Goal:• 20% Reduction Per Ton Over 2015 Levels by 2025.

• Energy Efficiency Goal:• 10% Improvement Per Ton Over 2015 Levels by 2025.

• By Installing the Equipment Currently Planned, Meeting the Greenhouse Gas Reduction Goal will be Very Challenging.

In Closing

• Wastepaper Prohibitives and Outthrow Levels Have a Direct Impact on Mill Energy, Sustainability and Greenhouse Gas Generation.

• This Impact Needs to be Part of the Collective Recycling Narrative Relative to Sustainability.

• Key to This Narrative is Education Which is Why WestRock is a Funding Partner and Board Member of The Recycling Partnership (TRP).

Thank You to:

•Chris Demler, Kadant Black Clawson LLC

•Steve Vanden Heuvel, Kadant Black Clawson LLC

•Brita Sailer – Executive Director, RAM

•RAM/SWANA