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PLASTIC RESIN MANUFACTURERS TO INVEST MORE THAN $1.2 BILLION THROUGH 1995 ON RECYCLING

 PLASTIC RESIN MANUFACTURERS TO INVEST MORE THAN $1.2 BILLION
 THROUGH 1995 ON RECYCLING
 WASHINGTON, Oct. 22 /PRNewswire/ -- An independent survey conducted by Ernst & Young has found that plastic resin producers in the United States will have invested over $1.2 billion through 1995 in the recycling and reclaiming of post-consumer and manufacturing plastics waste. In the three years from 1990-1992, the industry will spend $551 million on plastics recycling.
 "This level of investment is a clear indication of the plastics industry's growing commitment to reduce the amount of plastics entering the waste stream. This is evident in its production of new resin blends made with post-consumer and virgin plastics, research into new applications and markets for recycled plastics, and in the construction and operation of plastics reclamation facilities," said J. Roger Hirl, chairman of the board of the American Plastics Council and CEO of Occidental Chemical Corporation. "The rate of post- consumer plastic packaging recycling increased 47 percent between 1990 and 1991, to 11 percent of all bottles and containers. This demonstrates that plastics recycling is becoming a way of doing business for our industry."
 "The investment figure represents the plastics industry's dedication to infrastructure development for the recycling of post- consumer plastics packaging, plastics from durable goods and manufacturing wastes," said Donald B. Shea, the American Plastics Council's group vice president. "And it is not just money spent on collection and reclamation. It demonstrates our long-term commitment to:
 -- Establish value-added markets through research and development of automatic sorting technologies to reduce costs;
 -- Produce new post-consumer resins with properties similar to virgin plastics; and
 -- Provide grants to universities and entrepreneurs for technological research."
 The recycling investment figure does not include expenditures for recovering "off-spec" or post-industrial scrap plastic, nor moneys spent on advertising or public relations to educate consumers about plastics recycling.
 Ernst & Young, an international accounting firm, conducted the survey to capture the total investment and costs related to post-consumer and manufacturing scrap plastics recycling. In addition to the plastic resign producers, a group of consumer product companies responded to the survey indicating that they had invested $125 million in recycling and reclamation activities including technology to utilize post-consumer plastics in new products. This figure is separate from the resin manufacturers' outlays and represents only a fraction of this market segment's investment aimed at facilitating plastics recycling.
 The $1.2 billion investment by the plastics industry includes expenditures for the following:
 -- Research and Development -- Recovery and use of post-consumer and/or manufacturing scrap, blending and/or mixing with virgin, testing, design and production trials, etc.
 -- Capital investment in equipment -- Building reclamation facilities, machinery retrofitting, purchasing of accessories and any other depreciable investments necessary to use post-consumer and manufacturing scrap, among others.
 -- Net recycling operating expenses -- The costs to use or reclaim post-consumer plastics or produce recycled content resins, after subtracting profits.
 -- Internal recycling support -- Expenditures incurred to develop or identify markets for the sale of recycled plastics, includes internal costs to market post-consumer and industrial recycled plastics, among others.
 -- External recycling expenses -- Includes loans and grants to support post-consumer plastics recycling programs and purchases of products containing recycled plastics.
 -- Collective investment -- Approximately 10 percent of the total investment figure was funded by industry trade associations and allied companies in activities that include plastics recycling research and infrastructure building (e.g., grants to communities, loans of equipment, research investments and technology development).
 The American Plastics Council, a joint initiative with The Society of the Plastics Industry, Inc., has brought together the diverse interests of 26 companies within the plastics industry and committed unprecedented resources to address the role of plastics in the environment.
 -0- 10/22/92
 /CONTACT: Bailey Condrey of the American Plastics Council, 202-371-5325/ CO: American Plastics Council ST: District of Columbia IN: SU:


MH-TW -- DC007 -- 3403 10/22/92 10:06 EDT
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Date:Oct 22, 1992
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