2013 ENVIRONMENTAL REPORT SUMMARY 1. GENERAL MANAGER STATEMENT 3 2. COMPANY PROFILE 4 2. 1 Details of the organization 4 2. 2 Primary products and main application areas 5 2. 3 Our manufacturing process 7 3. SCOPE OF THE DOCUMENT 10 4. 2020 ENVIRONMENTAL STRATEGY 11 5. ENVIRONMENTAL PERFORMANCES 12 5. 1 Air emissions 13 5.2 Water 15 5.3 Waste 17 5.4 Energy 21 5.5 Product related aspects 23 6. ENVIRONMENTAL IMPROVEMENT 25 6. 1 Targets already achieved 25 6.2 Future targets 27 7. CERTIFICATIONS 28 8. GLOSSARY 29 ENVIRONMENTAL REPORT / 2 1. GENERAL MANAGER STATEMENT Taghleef Industries Kft. occupies a prominent position in the flexible packaging market, as the only biaxially oriented polypropylene manufacturer in Hungary. Our company is located in Tiszaújváros, about 170 km East of Budapest, and is part of the international Taghleef Industries Group, one of the world’s largest film manu- facturers. The Company’s mission is to develop, produce and market BOPP films in compliance with our clients’ highest expectations. Our film can be used in decorative packaging and label markets. Continuous innovation is part of our Group’s basic philosophy. The portfolio of products include low-heat sealable, anti-fog and easy opening films that help to avoid uncontrolled tearing of the packaging. The most important application of our products is in the food industry. Our products and equipment are constantly improved to meet our customers’ products and service needs. Sustainability is also part of these efforts, which includes social, economic and environmental aspects. The road towards sustainability requires continuous commitment from the entire company and begins by focusing on environmental considerations. Our company has always carried out specific environmental measurements, in order to identify and control the environmental impact of our production process. The related figures are below legally prescribed limits and we strive to reduce such results even more with additional improvements. However, we are fully aware that reducing some environmental impcts, such as energy consumption, is directly related to the certain physical and technological limitations due to the kind of products we manufacture. This can be achieved by investing in new technologies and developing new types of products. As an example, by manufacturing thinner films, we reduce the amount of material used for packaging and also the consequent waste. Publication of this Environmental Report confirms the Company’s commitment and contains past achievements and future targets. Data and results achieved, confirm that our recent efforts have not been in vain. However, we are aware that further steps need to be made in order to continuously improve our performance. Antal Bazsó MANAGING DIRECTOR 3 / ENVIRONMENTAL REPORT 2. COMPANY PROFILE 2.1 Details of the organization Headquartered in Dubai (UAE), Taghleef Industries (Ti) is one of the largest manufacturers of biaxially oriented polypropylene (BoPP), cast polypropylene (CPP) and biaxially oriented polylactic acid (BoPLA) films in the world, with an annual film capacity of 360.000 tons. The Group was established in 2006, merging the experience and power of three companies: Technopack based in Egypt, Al Khaleej Polypropylene Co. (AKPP) based in Oman and Dubai Poly Film based in the United Arab Emirates (UAE). Taghleef Industries belongs to the privately owned Al Ghurair Group, which operates in strategic businesses, such as real estate and shopping malls, manufacturing (packaging solutions and metals) and investments. As the largest producer in the Middle East, it has been supplying films for two decades. During the following years, Taghleef Industries commissioned new production lines and expanded its presence in the global market through new mergers and acquisitions in order to meet the ever increasing domestic and international market demands. Currently, Taghleef Industries is present in 5 continents with a total of 8 production sites located in the UAE, Oman, Egypt, Italy, Hungary, Australia, USA, and Canada, and operates 3 distribution centers located in Germany, USA and China. After the latest acquisition in the USA, Taghleef Industries increased its manufacturing assets to 24 production lines. Canada and 3 distribution centres located in Germany, USA and China. After the last acquisition in the USA, the total number of lines forming Taghleef Industries’ technology park increased to 24. Thanks to its international presence and its continuous investments in people and equipment, Taghleef Industries is now able to supply high-quality products to serve world markets. Having a global presence, Taghleef Industries is also involved in global issues and takes fully responsibility on sustainable development. Taghleef Industries is now focussing on the environment, one of the three pillars of sustainable development and it is, therefore, committed to creating and offering alternative packaging solutions while reducing the environmental impact of its manufacturing process. ENVIRONMENTAL REPORT / 4 2.2 Primary products and main application areas PACKAGING OF FOODSTUFFS For the protection, preservation, and last but not least, maximum visual impact of the packaged product, Taghleef Industries Kft. offers a complete portfolio of materials, ranging from transparent film, white film, white voided film, metallised film, and up to specialty matte products used in the packaging of many foodstuff goods. One must highlight the both sides heat sealable TSS destined to all the general packaging applications; the transparent TNS with cold seal release properties; the white both sides heat sealable WSS, which contributes to savings in printing with white backgrounds; the metallised (one side) heat sealable ZHB, which offers an excellent barrier to gases and light; the white voided films, such as the ELD, the ERD, used not only for the particular optical effect, but also for the elevated quantitative yields up to the matt film, like the MUS for the packaging with a natural paper resemblance. FILM FOR INDUSTRIAL APPLICATIONS (low sealable, metallisable/metallised film) As an alternative to the standard films for the packaging of foodstuffs, and particularly where higher packaging velocity is required, Taghleef Industries Kft. offers a series of films characterized by a low temperature seal capacity. These materials can also be used in applications where an excessive seal temperature could damage the foodstuff product and in applications which substitute packaging with cold seal, such as the packaging of ice-cream, pastries and chocolate. This series of materials, distinguishable by the acronyms ES (“early sealable”), LS (“low sealable”) or XS (“extra low sealable”), are available in the transparent versions TLS, metallised ZES, white WLS and white voided EXS. 5 / ENVIRONMENTAL REPORT PACKAGING OF FLOWERS 7DJKOHHI ,QGXVWULHV .IW VXSSOLHV IRU WKH UHDOLVDWLRQ RI SDFNDJLQJ IRU ÀRZHUV DQG SODQWV VRPH WUDGLWLRQDO PDWHULDOVOLNHWKHWUDQVSDUHQWEULOOLDQW716DQGRWKHULQQRYDWLYH¿OPVOLNHWKHERWKVLGHVPDWW700RUWKH special PHWDlOLVHGPDWWe¿OPWKH=00 or the ZKLWHYRLGHG(/' ADHESIVE FILM In the field of adhesive tapes, the TPT film is appreciated for its performance and transparency characteristics. The film is designed for the production of adhesive tapes utilizing the latest coating technologies: acrylic, solvent, and hot melt. )RU WKHSURGXFWLRQRIRI¿FHDGKHVLYHWDSHDQGSULQWHGLQGXVWULDOWDSHV a special versionLVDYDLODEOHHQULFKHGZLWKERWKVLGHVPDWWeVXUIDFH ¿QLVKWKH730 PACKAGING OF TEXTILES ,QWKHUHDOLVDWLRQRIWUDQVSDUHQWSURWHFWLYHHQYHORSHVIRUVWRFNLQJV DQGWLHVWKHXWLOLVDWLRQRID¿OPZLWKDQWLVWDWLFDQGEULOOLDQFHFKDUDF teristicsLVQHFHVVDU\OLNHWKHSFT. THE LABELS Taghleef Industries has recently developed a series of ¿OPV VXLWDEOH IRU ZUDS DURXQG DSSOLFDWLRQV the LGL 38 !m ZKLWH YRLGHG¿OPZLWKHOHYDWHGEULOOLDQFH WKH/=/P ZKLWHYRLGHG¿OP ZLWK RQH PHWDOOLVHG VLGH WKH /71 P WUDQVSDUHQW ¿OP ZLWK HOHYDWHGVXUIDFHEULOOLDQFH It is important to mention the ³LQ-PRXOG´ use of ZKLWHYRLGHG/,0 /,* /,+ and the transparent LITSURGXFWV DQGWKH transparent /6$ZKLWHYRLGHG/6(DQGZKLWH/6: products for self adhesive applications. 7KH PRVW LPSRUWDQW FKDUDFWHULVWLF RI ODEHO ¿OPV LV WKH H[FHOOHQW PHFKDQLFDO SURSHUWLHV UHQGHULQJ WKHP VXLWDEOH IRU DSSOLFDWLRQV LQ WKHYDULRXVW\SHVRIODEHOOLQJPDFKLQHVXVLQJWKHmost common roll- fHGWHFKQLTXH.URQHV6LJ$OID% +3(/DEHOOHUV ENVIRONMENTAL REPORT / 6 2.3 Our manufacturing process Production Process Flowchart entry of raw materials » storage » dosage & mixture » » Extrusion » casting » mdo stretching » » tdo stretching » grinding pull roll & treatments » » winding » ageing » » » metalliSation slitting » department packaging & finished products store » delivery to client 7 / ENVIRONMENTAL REPORT RAW MATERIALS 7KHSURGXFWVPDQXIDFWXUHGE\7DJKOHHI,QGXVWULHV.IWGHULYHIURPpolypropylene (PP)ZKLFKLVDWKHUPR plastic polymer that consists of QRQWR[LFPROHFXOHVPDGHXSRIRQO\FDUERQDQGK\GURJHQDWRPV'XULQJWKH PDQXIDFWXULQJSURFHVVWKHXVHRIVSHFL¿HGTXDQWLWLHVRIDGGLWLYHVPDVWHUEDWFKHVJLYHVWRWKH¿OPLWVVSHFL¿F FKDUDFWHULVWLFV$OOUDZPDWHULDOVXVHGE\7DJKOHHI,QGXVWULHV.IWFRPSO\ZLWKWKHNational and European Union regulations and the Food Contact regulations of the USA. EXTRUSION ([WUXVLRQLVWKH¿UVWVWDge of the transformation process. 3RO\SURS\OHQHJUDQXOHVWRJHWKHUZLWKWKHDGGLWLYHV DUHDSSURSULDWHO\GRVHGVHQWWRDSUHPL[HUDQGVXSSOLHGWRWKHH[WUXGHUVE\SQHXPDWLFV\VWHPV+HUHWKH\ are PHOWHGDQGH[WUXGHG forming a ÀDWVKHHWWKDWLVVWDELOL]HGWKDQNVWRDQLPPHGLDWHFRROLQJE\LPPHUVLRQ LQDZDWHUWDQN and then driedRIWKHUHPDLQLQJVXUIDFHZDWHUE\EORZLQJDLURQWKH¿OPVXUIDFH