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Mike Biasi – President, Valley Converting - Rural Action

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Waste to Wealth Summit<br />

August 6, 2012


• Founded by Gino <strong>Biasi</strong> in 1973.<br />

• Based in Toronto, OH.<br />

• Started the company with two<br />

employees.


• <strong>Valley</strong> <strong>Converting</strong> would purchase rolls and<br />

sheets of chipboard from the Toronto<br />

Paperboard Mill and convert them into<br />

smaller sizes, pasted, tied, scored, and long<br />

sheets.<br />

• <strong>Converting</strong> operation grew to over 10<br />

employees working six days a week


• Toronto Paperboard mill encountered serious<br />

corporate problems in the mid 80s and closed<br />

in September 1987<br />

• Gino <strong>Biasi</strong> personally bought the mill in May<br />

1988<br />

• Started making chipboard on #1 Paper Machine<br />

by July 1988 and on the #2 Paper Machine in<br />

January 1990


• Due to economic conditions we shutdown<br />

our #2 Paper Machine in November 2000<br />

• We currently manufacture over 84 tons a<br />

day and 21,600 tons annually on our #1 Paper<br />

Machine<br />

• Chipboard is made up of 100% recycled fiber


• We purchase the majority of our recovered fiber<br />

from paper scrap dealers<br />

• We also purchase from local business and regional<br />

waste programs<br />

• Two grants from the Ohio Department of Natural<br />

Resources in ’04 and ’07 for a total of $500,000.<br />

These grants enabled us the ability to build the<br />

Recycling Center and purchase the necessary<br />

cleaning equipment for the recovered fiber.


• We purchase Old Corrugated Containers (OCC),<br />

Newsprint, Mix, and Boxboard Cuttings from<br />

Brokers, County Recycling Programs, Local<br />

Businesses, and the General Public<br />

• The makeup of our chipboard:<br />

<strong>–</strong> OCC - 15%<br />

<strong>–</strong> News - 15 %<br />

<strong>–</strong> Mix - 20%<br />

<strong>–</strong> Boxboard - 50%<br />

• Scrap comes generally from Ohio, West Virginia,<br />

and Pennsylvania and within a 200 mile radius of<br />

our plant. Freight limits how far out we can go out<br />

and get scrap.


• In 2011, we purchased 21,700 tons of scrap<br />

• Scrap Brokers - 16,700 tons<br />

• County Recycling Programs - 2,300<br />

tons (Jefferson/Belmont - 1,700 tons)<br />

• Local Businesses - 1,100 tons<br />

• Daily Scrap Purchases - 1,600 tons<br />

• Cost of scrap:<br />

• 2010 - $ 89/ton ($1,730,000)<br />

• 2011 - $125/ton ($2,700,000)


• Manufacturing and converting chipboard is a<br />

capital intensive industry<br />

• Our four biggest expenses are the following:<br />

• Scrap Paper<br />

• Wage / Health Benefits<br />

• Electric<br />

• Natural Gas<br />

• Chipboard market is maturing and not a lot of new<br />

innovations that require use of chipboard<br />

• Manufacturing quality chipboard in the most costeffective<br />

manner and increasing this production<br />

on a yearly basis


<strong>Mike</strong> <strong>Biasi</strong><br />

(800) 255 -0799<br />

or (740) 537-2152<br />

mike@valleyconverting.com

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