Recycling old corrugated cardboard (OCC) can be economically beneficial for business and industry, and it can be easily targeted in any recycling program. North Carolina companies are at various stages in establishing cardboard recycling programs: while many have well-established programs, others are just beginning to initiate a program or are evaluating whether to bale cardboard for better cost control.
In general, recycling markets for OCC are well established, and restrictions such as landfill ordinances increase the urgency to recycle. Below are some options for managing waste cardboard and general guidelines for baling cardboard on-site.
The OCC Problem
Old corrugated cardboard makes up a significant percentage of landfilled waste. Studies in Wake County show that OCC comprised 26 percent of the commercial/industrial/institutional waste stream and 18 percent of all municipal solid waste entering the county's landfills in 1992. In efforts to reduce landfilled waste, several counties and cities have enacted ordinances to ban or place surcharges on waste loads containing OCC. Other municipalities are planning similar restrictive ordinances. The Office of Waste Reduction can provide current restriction ordinances or resolutions in place for the local government units.
Even if there is no local ordinance concerning OCC, a company avoids disposal costs and keeps recyclables out of the landfill by recycling. When it comes to managing cardboard, consider the following:
- Start a waste reduction program for OCC; look for ways to reduce and reuse corrugated cardboard.
- Examine the available markets for OCC.
- Consider the pros and cons of baling OCC on-site.
- Even if you already have an OCC recycling program in place, look for ways to improve/expand it.
Establishing a Cardboard Recycling Program
There are many ways to establish an OCC recycling program. The cardboard may be collected loose or baled. It can be picked up or delivered to a local recycler. An OCC recycler will work with you to set up logistics that best meet your needs.
To locate an OCC recycler, (1) contact the local municipality or county recycling coordinator, (2) look under "Recycling Centers" in the telephone book, or (3) contact the Office of Waste Reduction in Raleigh at (919) 715-6500 or 1-800-763-0136.
Determining the Amount of OCC Generated
Many companies are surprised to find out how much cardboard they generate. The chart below lists estimated weights of loose OCC in containers of different sizes at 100 percent of capacity.
To Bale or Not To Bale
While many businesses recycle loose OCC, the economics of baling the cardboard should be evaluated. The first step in making such a determination is to get acceptable bale sizes and purchase prices from the local OCC recycler. If the cardboard is currently selling at $0.50 per 100 pounds ($10 per ton) in a loose form, this same cardboard in baled form may bring $20 per ton. Savings may also result from avoided hauling costs, by baling several materials for recycling, or by sharing a baler with another company. The following are some general guidelines.
- Determining Baler Size. Baler size is application-specific and is based on storage space constraints, OCC collection and handling methods, and buyer specifications. Assuming that it takes 40 minutes to load and strap a bale from a vertical baler (300- to 1,000-pound bales) and that all the OCC is at the baler location, one employee will be needed to load the baler and one or two to strap the bale. Unless the facility is generating very high volumes of OCC (greater than 25 tons a month), a vertical baler should have sufficient capacity.
- Baler Cost and Bale Volumes. The following information concerning bale volumes may be of interest. Costs are average list prices in November 1993.
|Average List Price
|300||36 x 15||15||4,750||5|
|800||48 x 28||47.5||7,600||10|
|1,000||60 x 28||50||8,900||10|
|1,200||72 x 28||60||9,700||10|
|1,500||72 x 32||84||20,000||15|
|Average List Price
|1,200||28 x 50||52||25,000||25|
|1,500||46 x 50||57||35,000||30|
|2,000||45 x 60||64||45,000||40|
Determining Other Costs of Baling
Labor. Since loading and tying a bale take about 40 minutes, labor costs can be determined by this time requirement. Compare this time to the time required to collect, break down boxes, and load your dumpster!
Baling Wire. Wire costs for different bale sizes vary between $0.80 to $1.00 per bale.
Electrical Usage. The kWh used will vary widely, although an estimate for one 750-pound bale was $1.05.
Annual Maintenance. One or 2 percent of baler purchase price will cover average annual maintenance.
Note that other recyclable materials such as plastic film wrap, textile scraps, and other plastics can also be baled. The equipment investment may well pay for itself with the added value you'll receive from baled materials.
Take a close look at the cardboard recycling program at your facility. Don't get caught in the squeeze of high disposal costs without knowing all your recycling options. Call the Office of Waste Reduction at (919) 715-6500, FAX (919) 715-6794, or e-mail OWR for assistance with your waste management program.
The North Carolina Office of Waste Reduction provides free, non-regulatory technical assistance on methods to eliminate, reduce, or recycle wastes before they become pollutants or require disposal.
Case Study: Company Z
An Example of Cost Avoidance and Cost Savings From a Corrugated Cardboard Recycling Program
Company Z manufactures widgets for sale nationwide. Many of its raw materials come packaged in corrugated cardboard boxes. In fact, cardboard represents half the company's waste. Company Z rents a 30-yd3 roll-off container from a private waste hauler for $50 a month. The hauler takes full loads from the company to the landfill once a week and charges $70 per haul. Company Z is charged a tipping fee of $20 per ton at the landfill; each of its loads weighs about 4 tons.
|Current Waste Costs for Company|
|Total annual waste stream: 52 weeks x 4 tons/wk.||208 tons|
|Total annual tipping fees: 208 tons x $20/ton||$4,160|
|Total annual container rent: 12 months x $50/month||$600|
|Total annual hauling costs: 52 weeks x $70/haul||$3,640|
|Total Annual (external) Waste Handling Costs||$8,400|
|(Total annual costs if tipping fee is $40/ton)||$12,560|
After examining its waste stream and current waste costs, Company Z decides to buy a baler to recycle its cardboard. The Company works with the local recycling coordinator to help institute the program and to find a market for the cardboard. Company Z realizes that recycling entails some costs but sees recycling as a way to avoid even bigger costs in the long run.
|Annual "Cost" of Recycling for Company Z|
|Annualized cost of purchase and installation of baler
($7,500 divided by 5 years; baler lasts 12 years)
|Cost of baling wire per year for cardboard baler||210|
|Annual cost of electricity and maintenance of baler||400|
|Added personnel operating costs of using baler (Two hours/wk at $8/hr)||830|
|Avoided hauling fees (No. of hauls cut in half)||(1,820)|
|Avoided tipping fees (at $20/ton)||(2,080)|
|Revenue from sale of cardboard ($10/ton)||(1,040)|
|Total cost (savings) from recycling||($2,000)|
In addition, Company Z has saved 200 yd3 of space in the landfill, thereby helping the county stave off the day when it must find a new landfill. The recycling of 104 tons of paper has also saved about 1,750 trees, saved water, helped prevent air and water pollution, and saved 426,000 kWh of energy.
Buoyed by its success, Company Z re-examined its waste stream and discovered other items to recycle such as office paper, metal bands, film plastic, aluminum cans, and pallets. Company Z once more contacted the local recycling coordinator for assistance in finding markets for these items.