Mike Biasi – President, Valley Converting - Rural Action
Mike Biasi – President, Valley Converting - Rural Action
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