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Use of Recovered Paper by Paper Manufacturing Companies in Japan

Nov. 26, 2012 Program on Paper Recycling System Establishment for Asia

Oji Eco Materials Co., Ltd.

Paper Recycling

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1. Relationship between the Types of Recovered Paper and Products 2. Recovery and Use of Recovered Paper in Japan

(1) Recovery Rate and Utilization Rate(2) Changes in Utilization Rate of Recovered Paper and Paperboard(3) Toward Improving Utilization Rate

3. Quality of Recovered Paper and Its Usage(1) Background Information on Contamination (2) Processes (From Receipt to Deinking)(3) Recovered Paper Quality and Issues(4) Examples of Quality Issues(5) Efforts to Improve Recovered Paper Quality

4. Improving Recovered Paper Application Technologies and Developing Facilities

(1) Transforming Confidential Documents into Paper ManufacturingResources

(2) Expanding the Use of Unused Waste Paper5. Demand and Supply Gap for Recovered Paper in Japan6. Conclusion

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1．Relationship Between the Types of Recovered Paper and Products

1. The statistical classifications (METI) has 9 categories, while the Paper Recycling Promotion Center has 26 categories. There are also further individual classifications based on facilities, application technologies, and applications, for each manufacturer and plant.

2. The three classifications of cardboard boxes, newspapers, and magazines make up 84% of the overall.3. Used magazines, which are mainly used in paperboard applications, have also increasingly been used as a substitute for used

newspapers, and quality paper is now used as newspapers and western papers (21%), due to factors such as the increase in the application of recovered paper as western paper and the increase in exports of used newspapers.

Source: Pulp and Paper Statistics, Monthly Report on Paper, Printing, Plastic, and Rubber Product Statistics

Statistical classification Classification by Paper Recycling Promotion Center Consumption in 2011

Composition of consumption in

2011Main products

Cardboard boxes Cardboard boxes, new cardboard boxes 8,052 47.5% Liner. corrugated medium (95%)

Newspapers Newspapers 3,973 23.4% Newspapers (67%), printing/communication paper (27%), colored board paper (4%)

Magazines Magazines 2,235 13.2% White paperboard (33%), liner, corrugated medium(41%), printing/communication paper/newspaper (21%)

Fine paper printed and coated paper

White ledger, color ledger, wood-free shavingswith partial color print, coated white shavings, polycoatedmilk carton stock, sorted office paper

1,978 11.7% Sanitary paper, printing/communication paper, white paperboard

Box board cuttingWhite paperboard cuttings, chipboard cuttings (carton), sorted residential recovered paper and paperboard, miscellaneous paper

386 2.3% Liner, corrugated medium, white paperboard

Quires woody paper printedHigh-grade color-printed wood-containing shavings, color-printed wood-containing shavings, high-grade wood-containing waste

139 0.8% Printing/communication paper/white paperboard

Hard white shaving, white card White shavings, cream shavings, ruled-paper shavings 70 0.4% Liner, white paperboard

Kraft browns New brown kraft cuttings, unprinted brown kraft, Used brown kraft sacks, kraft lined corrugated container 60 0.4% Liner, corrugated medium, packaging paper

White woody shavings, white manila

High-grade white wood-containing shavings, White wood containing shavings 56 0.3% Liner, white paperboard

Total 16,949 100%

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Why is it necessary to use recovered paper? •Reduce quantity of paper waste •Effective use of limited resources

1. In the paper manufacturing industry, the target utilization rate for recovered paper was established in 1990 with the aim of promoting the use of recovered paper. In 1994, this target rate was set at 55%; this was also stipulated under the law. Since then, the target has been revised four times, and the current target is 64%, set for 2015. Utilization rate was 63% in 2011, and 63.3% from January to July in 2012.

2. The recovery rate increased rapidly in the second half of the 1990s, due to the establishment of a legal system and administrative recovery by the local governments. In 2011, the figure was 77.9%. This was perceived to be close to the limit of recovery (Jan to July 2012: 80%)

3. After 2001, the recovery rate exceeded the utilization rate. Used paper exports became an established culture and increased. The volume of exports in 2011 was 21% of the volume recovered, at 4.43 million tons.

40.0

50.0

60.0

70.0

80.0

90.0

90 91 92 93 94 95 96 97 98 99 2000 01 02 03 04 05 06 07 08 09 10 11

(％)

77 .9％

古紙回収率

古紙利用率

乖離

63.0％

循環型社会形成推進基本法など法規制の整備

古紙利用率・回収率

2. Recovery and Use of Recovered Paper in Japan(1) Recovery Rate and Utilization Rate

Utilization rate and

recovery for recovered paper

Establishment of legal system, including the Basic Law for Promotion of the

Creation of a Recycle-Oriented Society

Utilization rate of recovered

paper

Recovery rate of recovered paper

Divergence

(2010) Recovery rate

Utilization rate

Japan 78.2% 62.5%United States 62.1% 36.9%China 45.3% 71.6%Thailand 45.7% 64.5%Malaysia 50.3% 100.5%Vietnam 32.6% 76.2%World average 56.6% 56.3%

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(2) Changes in Utilization Rate of Recovered Paper and Paperboard

1. Utilization rate of recovered paper in 2011 was 63.0%, broken down into paper (39.6%) and paperboard (92.8%).2. The utilization rate of paperboard exceeded 90%, close to the limit. In order to achieve the target utilization rate of 64%, an increase in

recovered paper in the paper sector is sought. However, the utilization rate for paper has fallen in the past two years due to factors such as high prices and difficulties in securing recovered paper for DIP such as used newspapers.

3. Toward the achievement of the target, the paper manufacturing industry is putting efforts into further improving application technologies for recovered paper, and developing facilities. However, the key to achieving the target lies in securing quality recovered paper to be recycled as paper. As such, it is important for the all the parties involved, including the paper manufacturing industry, consumers, recovery industry, and the administration, to come together and take thorough steps to separate recovered paper and to develop a quality recovered paper supply system.

Utilization rate of recovered paperboard

Overall utilization rate of recovered paper

Utilization rate of recovered paper

The key to increasing the utilization rate of recovered paper lies in

securing quality recovered paper

The utilization rate of paperboard is close to the limit

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(3) Toward Improving Utilization Rate

● Improving and stabilizing the quality of recovered paper

● Improving recovered paper application technologies and developing facilities・Promoting the use of substitute recovered paper for DIP・Promoting the use of unused waste paperPromoting the use of low-grade waste paper for paperboard, which has a wide

range of tolerance, and the use of newspapers and other high-grade recovered papers for newspapers and printing/communication papers.

● Stabilizing the procurement of recovered paper● Used paper prices that correspond with product

prices, and stabilizing prices

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(1) Background Information on Contamination

(1) Increase in the volume of recovered paper recovered

(2) Expansion in the scope of recovered paper recovery targets

(3) Diversification of recovery stylesInadequate awareness of the importance of quality

in recycling

(4) Diversification of paper productsCompound materials other than paper, such as plastics, and ink that is difficult to remove, etc.

(5) Insufficient dissemination of information to the recovery industry, local governments and other recovered paper sources (families, businesses, etc.)

(6) Lackluster standards of exported recovered paper

Source: “To maintain the quality of recovered paper” (Paper Recycling Promotion Center”

3. Quality of Recovered Paper and Its Usage

13品目 ： 紙ではあるが、品質および工程・生産管理上のトラブルの原因となるもの

10品目 ： 紙以外のもの（古紙に混ざり易いもの）

There has been an increase in the number of problems arising from recovered paper contamination. This has become a bottleneck in the use of recovered paper.

･ 粘着テープ類 ・ ワッペン類

・ ファイルの金具 ・ 金属クリップ

・ フィルム類 ･ 発泡スチロール

・ セロハン ・プラスチック類

･ ガラス製品 ･ 布製品

Please do not mix these with recovered paper

Paper products

Products other than paper• Adhesive tape, patches• Metal fittings on files, metal

clips• Film, bubble-wrap• Cellophane, plastics• Glass products, fabric

products

• Envelopes with items affixed, vinyl-coated paper

• Waxed products, oil paper, photographs

• Synthetic paper, waterproof paper• Printing paper (sublimation transfer

paper, iron-on prints, etc.)• Thermal foam paper, non-carbon

paper• Scented paper (soap boxes,

incense boxes)

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(2) Processes (From Receipt to Deinking)

Inspection of exterior appearance Unpacking for inspection

(2)-1 Receipt of recovered paper (Checking for quality)

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(2)-2 Injection of recovered paper into the recycling process

Inspection during injection

Unpacker

Injection conveyor

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(2)-3 Breaking down recovered paper

Drum pulper (horizontal) Tub pulper (vertical)

Used paper is crushed and converted back into fiber. At the same time, large contaminant particles and particles that cannot

be dissolved are removed.

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(2)-4 Broken down recovered paper

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(2)-5 Contaminants removed through the pulper

Removal of contaminants that cannot be dissolved in water or crushed into fine particles.

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(2)-6 Removal of dust (screen)Dust is removed through a sieve with gaps

of approximately 0.15mm.

0.15mm

It is possible to remove about 70% to 80% of attached contaminants and hot melt.

Filmy and string-like particles (such as in poly-laminated paper) cannot be removed.

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(2)-7 Deinking

Facility to remove ink (flotation device)

Ink that cannot be removed

・Water-soluble ink

・UV ink

・Ink that is difficult to remove from fiber, such as toner ink

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(3)-1 Factors that inhibit the processing of recovered paper

Breaking down

・Items that do not break down

・Items that crack

Increase in volume of trash, unable to extract fibers

Become widely dispersed throughout the process

Causes facilities to break down/inhibits facility functions

Removal of dust

・Slime, hot melt

・Sheet/string-like contaminants

Decline in paper quality (cracking, dirt)

Decline in paper quality (colored spots)

Clogging up of filters

(3) Recovered Paper Quality and Issues

・Heavy metals and string-like contaminants

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(3)-2 Factors that inhibit the processing of recovered paper

Deinking/ Cleaning

・Water-soluble ink

・UV ink

・Ink that is difficult to peel off (toner, etc.)

・Scented paper

・Sublimation transfer paper

Decline in degree of whiteness, increase in burden to water discharge

Colored spots

Darts, increase in use of electric power

Adsorption of scent

Colored spots when product is shipped

Bleaching ・Craft, cardboard boxes

・Colored paper

As chlorine-based chemicals are not used in DIP bleaching, these products cannot be whitened.

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(4)-1 Problems with white paper board arising as a result of sublimation transfer paper

Defects that appeared on white paperboard used for paper boxes

(4) Examples of Quality Issues

１．昇華転写紙が古紙に混入すると、時間の経過とともに昇華性インクが表面ににじみ出、

　　写真の様な欠点（あじさい斑点）が現出。

２．A4サイズ1枚の昇華転写紙が混入すると　約100ｔの損紙が発生。

３．最近、昇華転写紙による製品不良トラブルが増加。

1. When sublimation transfer paper is mixed in with recovered paper, the sublimation ink appears as stains on the surface of the paper as time passes (defects such as those seen in photographs).

2. Approximately 100 tons of paper will be wasted if one piece of A4-sized sublimation transfer paper is mixed in.

3. There has been an increase in the number of product problems arising as a result of sublimation transfer paper recently.

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(4)-2 Examples of sublimation transfer paper and waste materials from the transfer process

Printing office (Planographic printing)

Printing office (winder printing)

Sublimation transfer paper reused as cushioning material (common in imports)

Appendix of magazines

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(5) Efforts to Improve Recovered Paper Quality

Promoting education and awareness-raising activities on quality, for employees in the paper receiving departments of the plants.

Quality inspection during receipt and feedback to the sending party(Inspection for moisture, external appearance, unpacking to inspect for other

information, contaminants, etc.)

Investigating the causes behind problems with recovered paper, disseminating information to related parties within and outside the company

Going around wholesale recovered paper trading partners to provide guidance on quality

Deepening understanding of quality through arranging for employees of wholesale recovered paper trading partners to visit paper manufacturing plants, and an exchange of opinions

Activities to enhance quality through the Paper Recycling Promotion Center*Dissemination of information on the need for selection and separation, as well as problematic cases*Active cooperation on projects pertaining to stabilizing the quality of recovered paperProjects surveying the quality of recovered paper (refer to Appendix (5)-1),

establishment of information networks on the quality of recovered paper

Cooperation on initiatives to enhance the management of quality in the recovered paper industry

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(5)-1 Report on the Survey of Recovered Paper QualityProject to survey composition in unpacked recovered paper

Date:

To: Paper Recycling Promotion Center

（Company name）

（Respondent） Division:

Name: TEL:

Based on the Center’s project to survey composition in unpacked recovered paper, the results of the survey on used newspapers is as follows.

Date of survey:

%

Weight Remarks

kg

① ② ③

① ② ③

① ② ③

Supplier/delivery date of the recovered paper described in the above survey:

Supplier: Delivery date:

Specific name (Top three)

Moisture level in recovered paper

Total

Report on Composition in Unpacked Recovered Paper (Used Newspapers)

Name of plant surveyed:

Breakdown

Type A contamination

Newspapers

Flyers

Other papers

kg

kg

kg

kg

kg

Type B contamination

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４．Improving Recovered Paper Application Technologies and Developing Facilities

(1) Transforming Confidential Documents into Paper Manufacturing Resources(1) Dedicated processing factory for

confidential documents

(5) Injection line for dissolution

(3) Venous authentication system

(4) Injection of cardboard boxes without opening the packages

(2) The entrance is constantly kept closed

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(2) Expanding the Use of Unused Waste Paper

Prohibitive materials set by the Paper Recycling Promotion Center are being recycled in some plants through the development of facilities

（Representative examples）Laminated recovered paper (magazine covers, scrap material from waterproof bags, etc.)Election boards (paper)Used magnetic train ticketsPhotographic paperUsed plasterboardsOthers

（廃石膏ボード） （　紙　）

（　石　膏　）

Used plasterboards

Plaster

Paper

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Changes in the volumes of recovered paper recovered, consumed, and exported in Japan

Source: Reference taken from “Annual Report on Recovered Paper Statistics” (Paper Recycling Promotion Center)1. The demand and supply gap for used newspapers and cardboard boxes (volume recovered – volume consumed – volume exported) is on a decline

(excess of export). In 2008, when the figure did not fall, exports came to a sudden halt as a result of the Lehman shock; in 2011, exports came to a sudden halt due to the impact of the Great East Japan Earthquake, and after the beginning of fall)

2. From January to July 2012, although the volume of recovered paper, overall, increased, the volume of used newspapers and cardboard boxes continued to decline.

3. There is a need to achieve balance in maintaining the recovered paper recycling system. However, there are circumstances for each type of product. ・ With regard to used cardboard boxes, due to the presence of approximately 1.5 million tons (estimation for 2011) of net inflow of cardboard boxes

accompanying the import and export of various products, the volume recovered exceeded domestic demand. As such, there is a need to adjust for demand and supply quantities through export.・ Used newspapers are widely used as raw materials for paper and paperboard, and there is little excess left for export.

5. Demand and Supply Gap for Recovered Paper in Japan

< Changes in the volumes of recovered paper recovered, consumed, exported, and stocked in Japan >

Product type 2008 average 2009 average 2011 average

Quantity YoYchange

Quantity Quantity Quantity Quantity

1,000ｔ % 1,000ｔ 1,000ｔ 1,000ｔ 1,000ｔ

Used paper, overall

Volume recovered 1,896 106 1,805 101 1,803 100 1,796 99 1,763 102

Volume consumed 1,584 112 1,399 105 1,441 103 1,419 98 1,387 101

Volume exported 291 90 410 81 364 89 369 101 372 101Demand and supply gap 21 - 4 - 2 8 3

Newspapers Volume recovered 444 109 420 94 401 97 383 95 382 104

Volume consumed 412 103 373 99 365 98 330 90 340 102

Volume exported 28 57 49 58 37 75 53 143 47 99Demand and supply gap 4 - 2 - 1 0 - 5

Cardboard boxes

Volume recovered 841 110 811 101 837 103 845 101 811 101

Volume consumed 707 119 612 110 659 108 669 102 658 103

Volume exported 133 97 204 81 184 90 169 92 162 97Demand and supply gap

1 - 5 - 7 7 - 9

2010 average 12/1-7

YoYchange

YoYchange

YoYchange

YoYchange

% % % %

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6．Conclusion

Points in promoting the use of recovered paper• Further exploring sources of recovered paper• Stable procurement• Used paper prices that correspond with the unit price of products, and

price stability• Enhancing the quality of recovered paper• Improving the technologies for the use of recycled paper• Cooperation and coordination between the demand and supply

industries• Cooperation and coordination with the related industries (consumers,

recovery industry, local governments, paper use (printing, processing, etc.))

• Data aggregation and application• Coexistence of recovered paper for domestic consumption and

recovered paper for exports• Stability in demand and supply of recovered paper for the whole of

Asia—increase in recovery rate for countries involved• Importance and utilization of the Paper Recycling Promotion Center

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Thank you for your kind attention.