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Recycling and i2iSM (Innovation to Implementation)

RECYCLING OPERATIONS

To serve its recycling-based facilities, Smurfit-Stone has built one of the largest reclamation businesses in the industry and now handles more than 6.5 million tons of recycled paper annually.

RECYCLING PRODUCT LINES AND END-USE MARKETS

SSCC’s recycling business has the capacity and flexibility to process recovered paper generated by industrial, commercial and residential sources.

Nearly 46 percent of the fiber collected is used in the company’s mills. The rest is sold on the open market. Of the volume collected and sold externally, 41 percent is old corrugated containers (OCC); 23 percent double lined kraft (DLK); 20 percent is old newspapers (ONP); and 16 percent is a variety of grades including non-fiber products, such as aluminum, glass and plastic. Smurfit-Stone Waste Reduction Services’ (SWRS) experts counsel a wide range of customers on strategies to develop comprehensive waste management solutions, reduce costs and increase efficiency.

North American recycling operations include:

UNITS (THOUSAND TONS) 2004 2003 2002
Recycled Volume Processed      
Recovered Fiber   . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,542 6,549 6,582
Non-Fiber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 87 78 78
   Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,629 6,627 6,660
Open Market Shipments . . . . . . . . . . . . . . . . . . . . . . . . 3,637 3,435 3,364

 

Smurfit-Stone
2005-2006 Investor Fact Book
Statistical Supplement to Annual Report to Shareholders

i2iSM

Smurfit-Stone has made innovation central to its growth strategy by forming the new i2iSM operating unit in 2004. With i2iSM — “innovation to implementation” — the company is organized to connect directly with marketing and branding decision makers. i2iSM combines the creativity of the company’s packaging solution centers, the capabilities of its packaging facilities, and externally sourced products and services to deliver merchandise solutions, including strategic brand development and creative design, to customers.

From refreshing a brand’s image through delivery of a customer’s product to the store shelf, i2iSM is the single source to handle the task regardless of scale or complexity. When customers work with i2iSM, they get much more than just great printing and packaging. They gain insight into new ways to extend their brands, increase a product’s life cycle, build a brand’s recognition, reduce waste and supply chain costs, become faster to market, and make more profit.

Throughout i2iSM’s process, the focus is on speed to market so that the entire course is efficient and stays within a customer’s tight time requirements. Whether it’s a customer’s own design or one i2iSM creates for them, i2iSM helps manage branded programs. These programs are designed so that the finished look, regardless of where the package is produced in an increasingly global economy, will be outstanding, consistent, help promote a customer’s brand, and build sales.

Retailers are increasing their influence deeper into the supply chain, redefining the way packaging is used, placed and promoted. With i2iSM, SSCC transforms these marketplace challenges into profitable growth opportunities.

i2iSM operations include three packaging design centers in North America and one in Asia.