Displaying items by tag: Sonoco Recycling

Sonoco (NYSE: SON) has announced that it will raise the price for all grades of uncoated recycled paperboard (URB) products by $25 per ton, effective for shipments in the United States andCanada beginning Feb. 11, 2013.

"This price increase is necessary to recover continued inflationary pressure from non-fiber-related costs, including chemicals, energy, freight, repair materials, labor and other expenses," said Marty Pignone, vice president, Primary Materials Group, North America.

Sonoco is one of the largest producers of uncoated recycled paperboard in the United States and Canada, producing more than 1 million tons annually from 13 mills. For more information about Sonoco's complete line of URB paper products or to learn more about current pricing, please visit the Company's website or contact the Company at +800-377-2692.

Sonoco (NYSE: SON) Chairman and Chief Executive Officer Harris E. DeLoach Jr., President, Chief Operating Officer and CEO-elect M. Jack Sanders and Vice President and Chief Financial Officer Barry L. Saunders, has provided the investment community in New York with an update on the Company's 2012 performance and outlined the Company's strategic initiatives and financial outlook.

2012 Base Earnings Guidance Unchanged; 2013 Estimates Established
Sonoco expects fourth quarter and full-year 2012 base earnings to be unchanged from the Company's previously announced guidance of $.52 to $.56 and $2.17 to $2.21 per diluted share, respectively. The Company reported fourth quarter and full-year 2011 base earnings of $.46 and $2.29 per diluted share, respectively. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition expenses and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

"At this point in the quarter, we have not seen any significant changes in business conditions that would cause us to revise guidance, but customer order patterns remain somewhat erratic and overall economic activity is uncertain," said Sonoco's CFO Saunders.

"Sonoco expects to recognize about $12 million in additional tax expense in the fourth quarter of 2012 associated with the repatriation of cash held outside the United States. This one-time charge is excluded from the Company's base earnings projections," Saunders said.

Commenting on the Company's 2012 expected results, DeLoach said, "Obviously, our performance in 2012 is not what we expected when we began the year. That said, we have weathered a difficult economic and operating environment and made changes we believe will improve our performance in the future."

Sonoco estimates 2013 base earnings per diluted share to be in the range of $2.24 to $2.32, with a projected midpoint of $2.28per diluted share. Saunders said the Company's midpoint guidance assumes a $.20 per share improvement stemming from modest volume growth, productivity improvements and a slightly positive price/cost relationship. Offsetting these improvements is approximately $.11 in negative items, including an estimated $.09 per share impact from higher year-over-year pension expenses.

Free Cash Flow Outlook Provided; Capital Deployment Plans Outlined
DeLoach pointed out that despite lower expected earnings through the first nine months of 2012, cash flow from operations has increased 125 percent year over year to nearly $297 million, due to lower pension and post retirement contributions and beneficial changes in working capital. For 2012, the Company expects to generate free cash flow of approximately $90 million, after paying approximately $120 million in dividends to shareholders.

Looking forward, Sonoco is projecting that annual cash flow from operations could average approximately $460 million over the next several years. For 2013, free cash flow, after dividends, is estimated to increase to approximately $130 million, due primarily to anticipated lower pension contributions, CFO Saunders said.

President, COO and CEO-elect Sanders outlined Sonoco's anticipated capital deployment plans saying, "Our first priority will be to maintain our strong investment grade credit rating. With the repatriation of cash and the use of free cash flow, we expect to make significant debt-reduction payments in 2013.

"In addition, we plan to continue investing in our targeted growth businesses while optimizing operations in our more mature businesses. Our dividend policy is unchanged and we expect to continue rewarding our shareholders with cash dividends as we have for 350 consecutive quarters, going back to 1925. For 2013 through 2015, our remaining available cash is expected to total approximately $260 million and be available for targeted acquisitions and/or share repurchases."

Strategy Focusing Resources to Targeted Growth Businesses  
Sanders said that Sonoco will be focusing resources and investment in businesses which serve faster growing markets, including the Company's Consumer Packaging and Protective Solutions businesses and selected emerging market development opportunities for composite cans and tubes and cores.

"We are targeting to grow our top-line sales to between $5.5 and $6.0 billion by the end of 2015," said Sanders. "We must drive organic growth in our faster growing businesses and optimize operations in our more mature businesses by focusing on market share management and cost optimization."

Sanders cited the following 2012 and 2013 growth projects, by business segment, as examples of the Company's growth strategy.

• Rigid Paper and Closures
  • Sonoco is establishing a new composite can production facility in Johor Bahru, Malaysia, to meet the growing appetite for premium stacked chips throughout Asia.
  • Stacked chip capacity is likely to be added in 2013 in Brazil and a review of growth opportunities in Eastern Europe is underway.
• Rigid Plastics
  • Sonoco started up in the third quarter of 2012 a new multilayer, trim-in-place thermoforming line at its Waynesville, N.C., facility to produce of a variety of containers for chilled and thermally processed shelf stable foods.
  • The Company plans to invest $7 million in 2013 to add a third multilayer, barrier bottle production line for nutraceutical beverages at its Columbus, Ohio, production facility.
  • In the third quarter of 2012, the Company commenced commercial operation of a new $15 million 142,000-square-foot plant in New Albany, Ohio, to produce PET personal care bottles.
• Flexible Packaging
  • Investment is being made to add a new rotogravure press to the Company's Morristown, Tenn., facility in 2013.
• Display and Packaging
  • Expanded packaging fulfillment capacity in Brazil and a new in-DC (distribution center) facility in the U.S. were put in operation in 2012.
• Protective Solutions
  • An investment of $15 million is planned in 2013 to build two new custom-molded foam fabricating facilities in the United States and Mexico to serve the growing automotive component market.

Key Takeaways
Sanders concluded the Company's review by saying, "2013 is projected to be a better year, but again we don't expect any real help from the global economy. In addition, we expect to face pension headwinds. However, free cash flow, after dividends, is expected to increase by up to 40 percent next year to $130 million."

"Our extended outlook through 2015 could see our top line reach $5.5 billion and earnings growing at compound rate of about 8 percent. To fully meet our financial targets we may need to make some minor course corrections along the way, including considering how we are organized so we can better satisfy the customer."  

Sonoco Recycling, LLC, a unit of Sonoco, has invested $4 million in its Columbia, S.C., materials recovery facility (MRF), allowing the facility to accept additional types of materials. Because of this, Richland County residents will now be able to recycle more of their household materials such as composite cans, glass, magazines and other types of plastics.

Sonoco Recycling has added three sorting screens for corrugated cardboard and paper sorting, an optical sorter to retrieve plastic, and a new glass crusher that allows the facility to collect whole and broken glass bottles, jugs and jars.

"Sonoco has always prided itself on 'closing the loop,'" said Ray Howard, general manager, Sonoco Recycling. "We use recycled materials in our products, which are then recycled by the consumer and come back to us for processing. With this upgrade, we're now able to recycle even more of the packaging produced by Sonoco, in addition to the other items we collect that aren't produced by us."

Derek Trader, division marketing manager, Global Rigid Paper and Closures, agreed, "Sonoco is one of the largest providers of composite can packaging in the world for products such as coffee or Pringles^® potato crisps. The ability to both produce and recycle this item is exciting for us and further demonstrates the Company's commitment to sustainable business practices."

New items accepted:

• Composite cans – cardboard containers with metal bottoms, such as coffee or Pringles containers
• Paper – office paper, junk mail, magazines, chipboard, wet-pack boxes and gable-top cartons
• Plastics – most plastics #1-7, including plastic bottles, jugs, jars and containers like yogurt cups and margarine tubes, milk crates, curbside recycling bins and carts, laundry baskets, plastic lawn furniture and toys, and five-gallon buckets
• Glass – whole and broken glass bottles, jugs and jars

The facility is still unable to accept tissue paper, paper plates and cups, waxed cardboard, plastic bags and films, containers that have held toxic substances, metal lids on glass or plastic items, glass cups or plates, window glass or ceramics.

A recycling leader with 50 locations and expertise worldwide, Sonoco Recycling annually collects approximately 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers.

Sonoco Recycling currently operates six material recovery facilities (MRFs) and serves nearly 150 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

Sonoco Recycling, LLC,  a unit of Sonoco (NYSE: SON) and one of the largest packaging recyclers in North America, has completed $2 million in upgrades at the Onslow County, N.C., materials recovery facility (MRF), allowing the facility to process a higher volume of recyclables.

"Onslow County is one of the premier coastal counties of North Carolina and environmental stewardship has always been of the utmost importance," said Scott Bost, solid waste director, Onslow County. "With that in mind, we are extremely pleased to partner with Sonoco Recycling to provide long-term recycling capabilities to the citizens of the Onslow County area. Sonoco Recycling's expertise and many years of experience in the recycling industry will continue to move the County forward with efficient and sustainable waste management for Onslow County."

Ray Howard, general manager, Sonoco Recycling, agrees. "In the year that we've been here, we've found the Onslowcommunity to be very progressive in the areas of sustainability and recycling. We are excited to provide them with expanded recycling capabilities and help the County continue to move forward in these areas."

Howard continued, "In addition to new equipment, the Company also added an education room, and has been providing tours to approximately three classes of students per week. Currently, the tours are open to students of all ages, including first grade through high school seniors."

A recycling leader with locations and expertise worldwide, Sonoco Recycling annually collects more than 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers.

Currently, Sonoco Recycling operates six MRFs and serves more than 125 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

SOURCE Sonoco

Sonoco, one of the largest diversified global packaging companies, today reported financial results for its 2012 second quarter, ending July 1, 2012.

Second Quarter Highlights

• Second quarter 2012 GAAP earnings per diluted share were $.50, compared with $.52 in 2011.
• Second quarter 2012 GAAP results include after-tax charges of $.08 per diluted share, driven by previously announced restructuring activities.
• Base net income attributable to Sonoco (base earnings) for second quarter 2012 was $.58 per diluted share, compared with $.60 in 2011. (See base earnings definition and reconciliation later in this release.) Sonoco previously provided second quarter base earnings guidance of $.55 to $.60 per diluted share.
• Second quarter 2012 net sales were a record $1.20 billion, up 7 percent, compared with $1.13 billion in 2011.

Earnings Guidance

• Third quarter 2012 base earnings are expected to be $.62 to $.66 per diluted share.
• Guidance for full-year 2012 base earnings is revised to $2.34 to $2.39 per diluted share.

Second Quarter Review

Commenting on the Company's second quarter results, Chairman and Chief Executive Officer Harris E. DeLoach Jr. said, "Sonoco's second quarter results met our expectations despite the continuing tough global economic conditions. Base earnings showed sequential improvement for the second consecutive quarter and gross profits increased 13 percent year over year while base earnings before interest and taxes (EBIT) improved by 6 percent. Base earnings were down year over year by a little less than 2 percent. The benefits to base earnings from significantly improved productivity, prior year acquisitions and a positive price/cost relationship were largely offset by lower volumes, a negative mix of business and higher pension, interest and income tax expenses. However, absent the impact of a stronger dollar, year-over-year base earnings would have been essentially unchanged.

"Our Consumer Packaging segment's second quarter operating profit improved 6 percent year over year, but was down 15 percent from the first quarter largely due to normal seasonality. The segment's year-over-year improvement was a result of productivity gains and a positive price/cost relationship, partially offset by lower volumes, negative mix and higher pension, labor and other expenses. Operating profits from our Packaging Services segment declined 54 percent from the second quarter of 2011, and 17 percent from the first quarter.

Year-over-year results were negatively impacted by the previously announced loss of a large contract packaging customer and a stronger dollar.

"In our Paper and Industrial Converted Products segment, second quarter operating profits were down 2 percent from last year's second quarter, but were up 23 percent from the first quarter. The year-over-year decline was driven by higher pension, labor and other expenses and a negative impact from exchange rates. These factors were partially offset by improved productivity, a positive price/cost relationship and slightly better volume, coming primarily from improved paper operations.

"Operating profits in our new Protective Packaging segment, created as a result of last year's acquisition of Tegrant Holding Corporation, improved 66 percent from the first quarter. Tegrant's operations comprise the majority of this segment and we are very pleased with the improvement we're seeing there in operating efficiencies and the progress being made in the integration. Year-over-year results in the legacy protective packaging operation improved slightly as a small decline in volume was more than offset by improved productivity."

GAAP net income attributable to Sonoco in the second quarter was $51.3 million, or $.50 per diluted share, compared with$53.4 million, or $.52 per diluted share, in 2011. Base earnings were $59.7 million, or $.58 per diluted share, in the second quarter, compared with $60.8 million, or $.60 per diluted share, in 2011. Base earnings and base earnings per diluted share are non-GAAP financial measures adjusted to remove restructuring charges, asset impairment charges, acquisition expenses and other items, if any, the exclusion of which the Company believes improves comparability and analysis of the underlying financial performance of the business.

Items excluded from base earnings in the second quarter of 2012 totaled $8.3 million, after tax, or $.08 per diluted share. This included restructuring expenses and asset impairment stemming from previously announced plant closures and manufacturing rationalization efforts in Germany, Canada and the United States. Excluded from base earnings in the second quarter of 2011 were after-tax restructuring and other charges totaling $7.4 million, or $.08 per diluted share, largely attributable to the disposition of the Company's Brazilian plastics operations and closure of a Canadian flexible packaging operation. Additional information about base earnings and base earnings per diluted share, along with a reconciliation to the most closely applicable GAAP financial measures, is provided later in this release.

Net sales for the second quarter were $1.20 billion, compared with $1.13 billion in the same period in 2011. This 7 percent increase was due to sales from acquisitions of $124 million, almost all of which is related to Tegrant, and higher selling prices, partially offset by lower volume/mix and a $41 million negative impact from foreign currency translation.

Gross profits were $217 million in the second quarter of 2012, compared with $191 million in the same period in 2011. Gross profit as a percent of sales was 18.0 percent, compared with 16.9 percent in the same period in 2011. The improvement in gross profits was due to productivity improvements and a positive price/cost relationship, partially offset by lower volumes, a negative shift in the mix of business and higher labor and other costs. The Company's selling, general and administrative (SG&A) expenses increased 19 percent year over year in the quarter, primarily due to added costs from the acquired Tegrant businesses. SG&A expenses were 9.9 percent of net sales in the 2012 period, compared with 8.8 percent in 2011.

Cash generated from operations in the second quarter was $42.9 million, compared with $45.9 million in the same period in 2011. Capital expenditures net of proceeds and cash dividends were $54.9 million and $30.2 million, respectively, during the second quarter of 2012, compared with $34.0 million and $28.9 million, respectively, during the same period in 2011.

Year-to-date Results

For the first six months of 2012, net sales increased 8 percent to $2.41 billion, compared with $2.25 billion in the first half of 2011. Net income attributable to Sonoco for the first six months of 2012 was $94.4 million, or $.92 per diluted share, compared with $110.8 million, or $1.08 per diluted share, in the first half of 2011. Earnings in the first half of 2012 were negatively impacted by after-tax restructuring and other charges of $19.1 million, or $.19 per diluted share, compared with $8.5 million, or$.09 per diluted share, in the same period in 2011.

Base earnings for the first half of 2012 were $113.5 million, compared with $119.3 million in the same period in 2011. This 5 percent year-over-year decline in base earnings stemmed from lower volume, a negative mix of business and higher pension, labor and other expenses. These negative factors were partially offset by productivity improvements, acquisitions and a positive price/cost relationship.

Gross profit increased 12.5 percent year over year to $433.4 million, compared with $385.3 million in 2011. Gross profit as a percent of sales increased in the first half of 2012 to 17.9 percent, compared to 17.2 percent in 2011.

For the first six months of 2012, cash generated from operations was $144.4 million, compared with $32.1 million in the same period in 2011. The first half cash flow reflects pension and postretirement benefit plan contributions of $58.9 million, compared with $110.5 million in the first half of 2011. Cash flow from operations also improved during the first half of 2012 due to less management incentives paid in comparison to last year. Capital expenditures and cash dividends were $102.0 millionand $59.3 million, respectively, during the first half of the year, compared with $70.5 million and $57.0 million, respectively, for the same period in 2011.

At the end of the first half of 2012, total debt was approximately $1.32 billion, a $32.0 million increase from the Company's year-end total debt of $1.29 billion. The Company's debt-to-total capital ratio was 47.4 percent, which is unchanged from year end 2011. Cash and cash equivalents as of the end of the first half of 2012 was $196 million, compared with $176 million at the end of the year.

Corporate

Net interest expense for the second quarter of 2012 increased to $15.3 million, compared with $8.2 million during the same period in 2011. The increase was due to higher debt levels as a result of the acquisition of Tegrant. The effective tax rate for the second quarter of 2012 was 35.3 percent, compared with 32.1 percent for the same period in 2011. The effective tax rate on base earnings was 32.8 percent and 31.9 percent in the second quarters of 2012 and 2011, respectively.

Third Quarter and Full-Year 2012 Outlook

Sonoco expects third quarter 2012 base earnings to be in the range of $.62 to $.66 per diluted share. Base earnings in the third quarter of 2011 were $.66 per diluted share. For the full-year 2012, base earnings are projected to be in the range of $2.34 to $2.39 per diluted share. The Company had previously provided full-year guidance of $2.34 to $2.44 per diluted share.

The Company's base earnings guidance assumes sales demand will remain near current levels, adjusted for seasonality. Although the Company believes the assumptions reflected in the range of guidance are reasonable, given the uncertainty regarding the global economy and fluctuating raw material prices and other costs, actual results could vary substantially.

Commenting on the Company's outlook, DeLoach said, "We expect third quarter base earnings to continue to improve sequentially and possibly could be near our results for the third quarter of 2011, which benefited from some lower incentives, taxes and other favorable actions. While we are encouraged by the progression of improvement in many of our businesses in the first half of the year, general economic conditions continue to be challenging and our customers' long-term order patterns remain difficult to predict. Accordingly, we are focused on implementing operating excellence initiatives to improve our manufacturing productivity and working to further reduce costs and control spending. Also, we expect to complete several important growth projects this year, including the third-quarter start-up of our new rigid plastics container plant in Columbus, Ohio. Finally, efforts to successfully integrate our Protective Packaging businesses continue and we expect to meet our objective of achieving annualized synergies of $12 million by year end."

SOURCE Sonoco

For the full release and tables please download vis the link below

Sonoco Recycling, LLC, a unit of Sonoco and one of the largest packaging recyclers in North America, has announced that Sonoco CorrFlex's Rural Hall, N.C., facility has successfully diverted over 95 percent of its waste to landfill. The plant is the second CorrFlex facility to receive a silver-tier Star Award.

In September 2011, employees at Sonoco CorrFlex's Rural Hall, N.C., fulfillment facility formed Team Green, focused on achieving landfill-free status in two years. Since the plant is a fulfillment facility, its materials mix frequently changes based on the current customer and project. One of the major challenges for the team was staying on top of the flux of materials and determining the best outlet for each. To better understand their current program, the team began tracking landfill and recycling tonnage. Dumpster contents were monitored, assessing those areas that needed work to reduce the plant's landfill tonnage. Common recycling areas were set up in production and office areas, and employees were encouraged to bring in their recyclables from home.

The constant change within the temporary work force at Rural Hall posed another challenge for Team Green when implementing a shift in the plant's recycling culture, as the personnel within the work force changes daily and many are non-English speakers. By working closely with the plant's temporary staffing agency and using bilingual labeling, Team Green was able to overcome many recycling issues.

"In just eight months, Team Green was able to divert over 95 percent of Rural Hall's waste through a mix of recycling, reuse and waste-to-energy," said Harris DeLoach III, Sonoco Recycling representative for the Rural Hall facility.

A strong component of Rural Hall's recycling program is the initiative to reuse articles that aren't recyclable, or are difficult to recycle. Many old inventory items such as bags or boxes, previously slated as waste, are now distributed among employees. This initiative also includes items that can be reused by local non-profit organizations. Used work gloves, scrap bubble wrap and other items that were once thrown away now benefit non-profit educational programs within the community. Used computers, printers and other inventory items are donated to public schools in need of supplies for art or learning.

Additionally, management agreed to set up an Employee Recycling Account to collect funds from the new programs. The account is split at the end of the year among all permanent employees.

Created to recognize customer and Sonoco facilities for achieving significant milestones in landfill diversion and waste stream reduction, the Sonoco Sustainability Star Award program is composed of three tiers:

• Gold Star Awards, which recognize facilities that have achieved 99 percent landfill diversion;
• Silver Star Awards, which are given to facilities achieving 95 percent landfill diversion; and
• Bronze Awards, which recognize facilities that have made significant waste reduction achievements.

Learn more about our Sonoco Sustainability Star Award program at http://www.sonoco.com/productsservices/sonocorecycling/sustainabilitystarawards.aspx.

A recycling leader with 50 locations and expertise worldwide, Sonoco Recycling annually collects approximately 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers. Currently, Sonoco Recycling operates six material recovery facilities (MRFs) and serves nearly 150 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

SOURCE Sonoco

The Company's Winston Salem facility achieves silver-tier award status

Sonoco Recycling, LLC, a unit of Sonoco  and one of the largest packaging recyclers in North America, has announced that Sonoco CorrFlex's Winston Salem,  N.C., facility has received a silver-tier Sonoco Sustainability Star Award for diverting a minimum of 95 percent of its waste to landfill.

In 2008, employees at the North Carolina facility established Team Green, aimed at cutting landfill waste in half and implementing a plant-wide recycling program. All plant waste streams were audited and evaluated for potential opportunities, using reduction, reuse and recycling to determine the best solution for landfill diversion, including changing landfill pick-up to an on-call basis.  Additionally, Team Green focused on controlling utility and water usage through assessment and reduction activities, and began diverting salvageable metal to recycling outlets instead of storing or landfilling it.

Recycling containers were placed in all common areas, and employees were encouraged to bring in their recyclables from home as well. The team even set up an employee recycling fund, paid out once yearly, where all funds collected from recycling of plastic cans, aluminum bottles, office paper and plastic bags are divided evenly between all employees.

"The Winston Salem group has shown a real dedication towards reducing waste to landfill and increasing recycling," said Ray Howard, general manager, Sonoco Recycling. "Currently, they're recycling approximately 98 percent of their materials and we applaud them for their efforts."

Duncan Sullivan, Sustainability and Special Projects, said, "Our facility is the second Sonoco CorrFlex location to win a Star award. While it's been very rewarding for the team to see our facility reach silver-tier status, our York, Pa., facility went landfill-free last year, and we're working to join them by the end of 2012."

As a result of these initiatives, Team Green was invited to partner with one of the facility's largest customers, PepsiCo's Frito-Lay business, in ongoing Resource Conservation activity, and was recognized at its global sustainability summit for creating a best-in-class culture for RECON performance.

Created to recognize customer and Sonoco facilities for achieving significant milestones in landfill diversion and waste stream reduction, the program is composed of three tiers:

• Gold Star Awards, which recognize facilities that have achieved 99 percent landfill diversion;
• Silver Star Recognition, which is awarded to facilities achieving 95 percent landfill diversion; and
• Bronze Awards, which recognize facilities that have made significant waste reduction achievements.

Learn more about our Sonoco Sustainability Star Award program at http://www.sonoco.com/productsservices/sonocorecyclinginc/sustainabilitystarawards.aspx.

A recycling leader with 50 locations and expertise worldwide, Sonoco Recycling annually collects approximately 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers. Currently, Sonoco Recycling operates six material recovery facilities (MRFs) and serves nearly 150 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

SOURCE Sonoco

Palmetto Distribution Center achieves gold-tier award status by going landfill free

Sonoco Recycling, Inc., a wholly owned subsidiary of Sonoco and one of the largest packaging recyclers in North America, today announced that Fruit of the Loom’s Palmetto Distribution Center, located in Summerville, S.C., has received a gold-tier Sonoco Sustainability Star Award for going landfill free.

“This is something we are very proud of,” said Jay Medlin, plant manager, Palmetto Distribution Center, Fruit of the Loom. “I challenged my team with the goal of going landfill free, and every employee in our facility has worked to help us hit our goal. From the early environmental education to the impact on daily operations, we could not have accomplished this without them.”

In announcing Fruit of the Loom’s achievement, Ray Howard, general manager, Sonoco Recycling, said, “Fruit of the Loom has demonstrated a strong commitment to preserving our planet’s natural resources, focusing on sustainability as an effort vital to the success of their business and their communities. We are honored to present them with a gold-tier sustainability award for this impressive achievement.”

To achieve landfill-free status, the Palmetto Distribution Center created a Green Team and began working on what they called their “Green on Green” initiative. The Green Team focused on making sure all recyclable materials, such as cardboard, baled stretch wrap, miscellaneous plastics, cores and office paper were collected by Sonoco Recycling. Fluorescent lights were crushed in a secure manner and sent off for recycling, while batteries were sent for recycling through an approved vendor. The Palmetto Distribution Center also works with vendors to ensure that their pallets are reused internally. The small amount of waste remaining is sent to a local compost facility and garden, or used by a waste-to-energy (WTE) facility.

The team’s biggest challenge was food and miscellaneous waste, but it successfully managed to find uses for all waste materials. As of January 2012, the Palmetto Distribution Center has successfully gone from 70 percent landfill diversion in 2010 and 95 percent in 2011 to 100 percent landfill diversion.

Created to recognize customer and Sonoco facilities for achieving significant milestones in landfill diversion and waste stream reduction, the program is composed of three tiers:

• Gold Star Awards, which recognize facilities that have achieved 99 percent landfill diversion;
• Silver Star Recognition, which is awarded to facilities achieving 95 percent landfill diversion; and
• Bronze Awards, which recognize facilities that have made significant waste reduction achievements.

Learn more about our Sonoco Sustainability Star Award program at http://www.sonoco.com/productsservices/sonocorecyclinginc/sustainabilitystarawards.aspx.

A recycling leader with locations and expertise worldwide, Sonoco Recycling annually collects more than 3 million tons of old corrugated containers, various grades of paper, metals and plastics. In addition, the Company has experts who provide secure, reliable and innovative recycling solutions to residential and commercial customers.

Currently, Sonoco Recycling operates six material recovery facilities (MRFs) and serves nearly 150 communities in which curbside-collected residential and commercial materials are processed. The Company also provides recycling programs which identify waste reduction opportunities that reduce operating expenses for many of the largest consumer product companies in the U.S.

Source: Sonoco