E-Newsletter - A Publication of Interstate Resources

Tuesday, July 1, 2008

Evergreen Community Power Addresses Environmentally Responsible Energy Solutions

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Summer 2008

Life at 7th and South Streets in Reading, Pennsylvania, these days is anything but “normal.” On a 6-acre plot of ground nestled behind United Corrstack (UCI), one can watch the transformation take place on a daily basis. Neighbors, Reading residents, commuters – all can see the structure that is changing the Southern landscape of the City.

Evergreen Community Power (ECP) project is alive and well, and positioned to make a long standing impact on the region.

What is “Evergreen Community Power?”

A steam boiler, a power plant, a recycling facility, an alternative to landfills, a “state-of the-art” alternative energy solution – all the above and then some.

Before it was “fashionable” to be“green,” Evergreen Community Power was launched as a“flag ship” project for the company to demonstrate
INDEVCO/Interstate Resources (IRI) commitment to serving the community by addressing environmentally responsible energy solutions, recycling, and creating non-fossil fuel based sustainable electric power generation. This concept was initiated in 2003, debated, developed further through 2005, and then fully committed to as a business investment in 2006.

ECP will be the first Circulating Fluidized Bed (CFB) Boiler supplied by an Austrian company (
Austrian Energy and Environment) in North America. It is designed to produce over 300,000 pounds/hour of high pressure steam and generate up to 30 megawatts of electric energy –all without the use of any fossil fuel.

Why would a privately owned company take on such a project?

The answer is simple – growth, stability and predictability. United Corrstack, a 100% recycled mini-mill, requires large quantities of steam and power to produce over 435 tons/day of corrugated medium. All of its energy presently comes from fossil fuel (natural gas or oil), as well as purchased power. Filling up your automobile or your oil tank at home is a grim reminder these days of how energy costs have escalated.

If United Corrstack did nothing to address its energy costs, it would be a recipe for disaster and a clear “going-out-of-business” fate. But the owners had the foresight to become less dependent on fossil fuel and to provide a sustainable energy solution; they have made a significant commitment to ensure the longevity of the business in Reading for its employees and the community by being forward thinkers, willing to invest for the long term.

What will be the fuel for Evergreen Community Power?

This question holds one of the “keys to success” for the project. Before any dirt was turned on the site, ECP needed an air permit in hand. This was obtained in June of 2007. In this permit, the project had to define likely fuels and get approval from the State of Pennsylvania to meet air emissions, which was no small task.

Due to the CFB technology and state-of-the art emission control systems, the fuel options for ECP are broad and provide flexibility and cost-saving opportunities. For example, the boiler is permitted to burn wood waste, pallets, creosoted wood, rail road ties, utility poles, construction and demolition sorted wood, tire derived fuel, plastics, carpet and paper mill sludge as well as selective food residual waste streams. All of the fuel will be processed off-site and delivered to ECP for short term storage and delivery to the boiler.

What’s the current status of the project?

Construction activity is progressing rapidly on multiple fronts. The photo provides a snap shot of the construction status. The following are highlights of the current status:

• During the June UCI annual outage, the electricaltie-in was completed with Met-Ed/First Energy, the regional electrical utility.

• The 30 MW Siemens Steam Turbine-Generator is inplace, with ancillary equipment fabrication under way.

• The boiler fabrication continues with the water wall panels being fitted, refractory application, and air pollution control equipment being added in the back-end of the process.

• The fuel storage reclaim system has just been installedand construction will begin soon on the fuelstorage silo.

• At this point, all major contracts have been executed and work is in progress in all areas. A total of 225 contractors are now actively working at the site.

• All salaried members of the ECP operating team have been hired and are now on site. Several members of the existing Interstate-Reading organizations will soon migrate to the new ECP organization. Four Lead Shift Operators have been hired and will join the operationin August. The balance of the operations and maintenance personnel will be hired in the near future.

• The operations team is working with the project team to develop plant controls, operating systems, procedures and training systems.

The next key milestone will be the hydrostatic testing of the boiler, scheduled for the third quarter of this year. Final check out and initial operation are currently anticipated by year-end. Though very complex, the project is exciting. The execution of the check out and start up efforts is critical for the ongoing performance of the plant.

We look forward to a fourth-quarter start for our new business.

Anticipate, Anticipate, Anticipate - one of the core tenets of the culture of the company. ECP embodies the meaning of “anticipate” by identifying global energy changes, assessing business risk, and moving forward deliberately. The long term success of this project will impact all areas of the IRI business units in a very positive way. All employees can be proud of working for an organization that is taking a leadership position in pursuing sustainable initiatives and moving toward future energy independence.

Evergreen Community Power is a member of Interstate Resources, Inc. and both are members of INDEVCO Group.

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Interstate Container Fitchburg Moves to Westminster

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Summer 2008

During the past three months, the Fitchburg sheet plant facility has been moving to a new location in Westminster,approximately five miles west of the present site. Since the acquisition of Interstate Container Fitchburg (ICF) in May 2003, Interstate Container has been leasing space to house the Fitchburg plant in a 190,000 square foot facility on three floors at 245 River Street in Fitchburg.

ICF is now relocating to 125,000 square feet of leased space at100 Simplex Drive in Westminster. It will occupy part of a 685,000 square foot Westminster building, which was constructed for the former Digital Equipment Corp.and formerly served as space for Simples-Grinnell LP,a Tyco International Ltd. Company. The move began in May and should be completed no later than October1, 2008.

This relocation provides an excellent opportunity to expand and grow our business at the new site and also to provide a fresh new image to the marketplace. In conjunction with the move, we are consolidating our sales and marketing approach to the market under the new name of “Interstate Container New England,”with two operating facilities - one in Lowell and one in Westminster. This new name will provide an opportunity to re-launch the two plants with one fresh new sales and marketing concept that we can take to new and existing accounts.

We expect to expand our business and grow with graphics, specialty products, and geographic and market segmentation diversification initiatives, supported by a strong marketing and lead generation program.

In order to support the new “Interstate Container New England” concept, we are consolidating the design teams from both Fitchburg and Lowell. The teams will be relocated together at a new “Interstate Container New England” design center in Westminster.

The real advantage of the relocation is to move the Fitchburg facility from a three-floor older textile factory to a single level modern manufacturing facility. This will allow us to be much more efficient in our manufacturing processes. It also provides the advantage of providing sufficient office space for plant management, as well as the design department.

Furthermore, this new space will allow us to create a showroom where customers can view products and interact with the design and sales teams to help sell our value-added product offerings.

The new Westminster and Lowell facilities will work closely together to provide diversified graphics and specialty products to the marketplace in a seamless manner. Both customer service departments and the consolidated design team will have the opportunity to schedule business to run at which ever facility is best for the customer and most profitable for the combined group.

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Interstate Container Lowell Helps Seaman Paper with Wal-Mart

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Summer 2008

Interstate Resources' production team has successfully produced its first large-volume run using three-colorsoy inks. There were a few stops and starts along the way, but the results have been well worth it. Seaman Paper faces tremendous pressure from imports as they try to satisfy their customer, Wal-Mart, with cost-competitive products.

We were able to help Seaman gain "I can’t understand why people are frightened of new ideas. I’m frightened of the old ones.”, John Cagea competitive edge through the use of soy inks, speaking directly to Wal-Mart’s “GREEN” initiative. This has also helped us with seasonal business, even though we are not yet an approved Wal-Mart corrugated supplier. The important process of gaining this approval from Wal-Mart is well underway.

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Interstate Resources Organizes 2008 Controllers’ Conference

Interstate Resources News homepage: http://news.interstateresources.com/  

Source: Interstate News, Summer 2008

The 2008 Controllers’ Conference was held 23-25 June at the Abraham Lincoln, a Wyndham Historic Hotel, in Reading, PA. The theme of the opening comments by Pierre Khattar of Interstate Resources was “Alignment in Turbulent Markets.” He facilitated a discussion on current results and the challenges of the coming year.

The meeting agenda also included Inventory Management, Control and Profitability, and Product Cost analysis. Paul Zimmerman introduced additional topics relevant to profitability, cash flow, and control of company assets. Sandra Bridges led a discussion on the Management Letter Comments from

Chad Brown facilitated a review of the benefits gained from the recent peer reviews, and Larry Haraschak and Michelle Heathershaw presented their observations on the methods and timing of Intercompany cross-charges.

Jim Morgan joined the group to discuss the strategic direction of Interstate Resources and the growth opportunities that are being pursued. The group also toured the Evergreen Community Power facility currently under construction.

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