Located in Sunraysia, one of Australia’s most resource-critical regions, expanded polystyrene manufacturer Andpak (Aust) Pty Ltd will reduce its energy use by about 60% while increasing production capacity by more than 40% through a major investment in highly efficient new moulding machines.

A Sustainability Leader

Although the European machines are significantly more expensive than models manufactured elsewhere, they will deliver greatly reduced steam usage, according to Andpak General Manager Bill Marriott. Cheaper machines were assessed, but could not match the efficiency offered by the European machines.

The machines will also allow water reuse, an important consideration in a region where food growers are intensely focused on reducing their water consumption through greater

efficiencies and upgraded irrigation systems.

Andpak, which was an early signatory to the Sustainability Leadership Framework for Industry launched by the Plastics and Chemicals Industries Association (PACIA) in 2008, has fully adopted the business case for sustainability.

“As the effect of global warming increases, there’s no doubt costs will go up,” Mr Marriott says. “And if we’re not efficient in what we’re doing, we don’t survive. We’ve got around 40 people

Existing moulding machines Packing boxes

Andpak, a small but highly innovative manufacturing business in regional Victoria, is fast becoming a sustainability leader in the expanded polystyrene (EPS) sector. The company has introduced numerous initiatives to drive sustainability, and in 2010 will expand production capacity to meet future demand and new markets.

Located near Mildura, Andpak initially made moulded polystyrene boxes for the local fresh fruit and produce industries, and has since diversified into products for the building, wine and industrial packaging industries.

One of the first regional signatories to the Sustainability Leadership Framework for Industry launched by the Plastics and Chemicals Industries Association (PACIA) in 2008, Andpak’s quest for greater efficiencies and reduced resource use is supported by its workforce of 25 full time staff and up to 20 casuals.

Case study

Andpak targets 60% energy savings 40% production increase with new moulding machines

who rely on us for work, and if we don’t run this business in a sustainable and profitable way, they won’t have a job and neither will I.”

The local community is also very aware of sustainability issues, and has high expectations that the company “does the right thing” by the environment and the community.

Andpak’s first new moulding machine will be operational in early 2010, and the company anticipates further orders will be placed in the second half of 2010.

Assisted by an Enterprise Connect Federal Government grant, Andpak is producing detailed factory expansion plans which will accommodate the three new machines and allow additional space for further long-term expansion.

The company has run extensive business diagnostics on the economic feasibility of the machinery, and has found the energy savings represent a very attractive payback period.

Sustainability Framework drives bigger efficiencies

While sustainability initiatives have already been implemented for water, energy, transport, waste and supply chain, the Sustainability Leadership Framework has made management and staff look even harder at costs, efficiencies and machine maintenance and output.

“All staff are aware that if machinery is operating at peak efficiency, it can make more product with lower average costs and input. If machines aren’t efficient and production is down, we can’t sustain those costs. The easiest thing would be to put prices up, but that’s not sustainable for customers,” Mr Marriott says.

Andpak signed up to the Victorian Government’s waterMAP audit program in 2007, and in 2008 cut water use by 20 per cent. Four 14,000-litre rainwater tanks were installed to supplement boiler water and provide water for cleaning trucks, while new internal water metres enabled better monitoring and management of water.

Steam traps were fitted to the moulding machines to prevent steam being lost to the atmosphere. This creates a closed system with no loss from the steam loop, cutting water use by 2% annually.

A monitoring system was fitted to the boilers to eliminate unnecessary flushing out, which should further reduce annual water usage by around 20%. However, Andpak will need to measure the impact over a six month period before results can be quantified. Andpak is now investigating the recovery and treatment of boiler water which goes to trade waste once TDS (total dissolved solids) become too high.

Savings of around 10% of annual water use have already been achieved by recirculating water through the cooling tower system.

A new supplier was chosen for the chemical treatment of cooling tower water, which can now be recirculated as an automatic dosing machine ensures excess chemicals are not used.

Andpak is also now beginning to measure its carbon footprint and examine how it can reduce electricity use.

Transport costs cut by up to 20%

Andpak will slash transport costs by up to 20%, a process which began when an observant staff member suggested that a different method of packing boxes into blocks could enable trucks to carry more than 250 extra boxes.

Improved packaging equipment will allow even higher numbers of some box configurations on trucks, while changes to box storage procedures suggested by a marketing executive will cut truck trips, forklift movements, loading and unloading time and storage costs.

“The guys think it’s fantastic,” Mr Marriott says. “Anything they can do to save a dollar and lessen the impact on the environment, they like.”

A strong supporter of the Sustainability Leadership Framework, he feels it delivers a set of principles which all businesses should be working to.

“Not only the plastics industry, but the trucking industry, government, in fact anyone involved in products and services should look at it.”

Continued overleaf

Case study

Loading packing boxes

A Sustainability Leader

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P l a s t i c s a n d C h e m i c a l s I n d u s t r i e s A s s o c i a t i o n I n c o r p o r a t e d

P l a s t i c s a n d C h e m i c a l s I n d u s t r i e s A s s o c i a t i o n I n c o r p o r a t e d

National Office

Level 1, Unit 7 Skipping Girl Place

651 Victoria Street

Abbotsford Victoria 3067 Australia

PO Box 211

Richmond Victoria 3121 Australia

Telephone +61 3 9429 0670

Facsimile +61 3 9429 0690

Email info@pacia.org.au

Website www.pacia.org.au

Canberra

Telephone +61 2 6230 6985

Facsimile +61 2 6230 6714

New South Wales

Telephone +61 2 9438 2273

Email sholland@pacia.org.au

Telephone +61 2 9558 0817

Email gmacalpine@pacia.org.au

For details of representatives

in other States, contact

PACIA National Office

Design Artwork & Print Management

Richard McKellar Design

03 9866 3380 rmdesign5@bigpond.com

PACIA468

Sustainability Leadership Framework for Industry

Plastics and Chemicals Industry

Sustainability Leadership Fram

ework for Industry

Water

Recirculation of cooling tower water: 10%

Savings through steam traps: 2%

Anticipated water savings through boiler monitoring system: 20%

Anticipated savings from new moulding machines

Energy savings: 60%

Production increase: 43%

Compressed air savings: 12%

How Andpak is slashing resource use

The Sustainability Leadership Framework is designed to assist PACIA members who want a sustainable business positioned for long term growth in an increasingly competitive and constrained market.

Over 30 companies including Andpak became signatories to the Framework in its first year, committing to its goals, gaining access to PACIA’s expert staff, advice and networks, engaging with fellow visionaries and benefiting from informative programs and expert forums. Twelve major partners support the program, including the EPA in Victoria,

NSW and Queensland, the CSIRO and the Federal Department of Environment, Water, Heritage and Arts.

Companies select their priorities from 11 areas that include: financial, water, energy and greenhouse, wastes and emissions, materials, health and safety, security, workforce, innovation

A snapshot of PACIA’S Sustainability Leadership Framework

Continued overleaf

Case study

Polystyrene waste becomes a new business opportunity

Bill Marriott says he now realises there’s no such thing as waste, only resources. So in 2008 Andpak purchased a melt machine which can reprocess polystyrene products after they have been granulated.

Andpak has begun reprocessing its own polystyrene waste and is now looking at how it can efficiently offer a service collecting and reprocessing customers’ polystyrene boxes from the Mildura region.

Currently, most compacted or melted polystyrene is sent to China where it is made into products including video and DVD cases. Mr Marriott says Australia is missing out on a significant business opportunity to undertake its own recycling.

“There’s a large industry for recycled plastic product, but there is no incentive to use it – and no disincentive not to use it,” he says.

He suggests the Federal government should introduce incentives for recycled products, such as foregoing GST so consumers would get a better price, and giving businesses a tax deduction for buying recycled products.

Andpak (Aust) Pty Ltd

Bill Marriott General Manager (03) 5024 5819 mail@andpak.netwww.andpak.net

PACIA and Programs

PACIA Sustainability Team

(03) 9429 0670 sustainability@pacia.org.au www.pacia.org.au

EPA Victoria

Service Growth Unit

(03) 9695 2722 business.support@epa.vic.gov.au www.epa.vic.gov.au

For further information:

Plastics and Chemicals Industries Association Level 1, Unit 7 Skipping Girl Place, 651 Victoria Street, Abbotsford Victoria 3067 www.pacia.org.au

PACIA499v.2

A Sustainability Leader

Interested in other PACIA Leaders?

PACIA has published a number of case studies, some of which showcase the actions of companies to improve

their stainability and others focus on key business strategies across companies (www.pacia.org.au).

A Rewarding Partnership

The Plastics and Chemicals Industries Association (PACIA) and EPA Victoria (EPA)

signed their second Sustainability Covenant in April 2009, confirming their ongoing

commitment to work together with PACIA members in the development of innovative

sustainable business solutions.

One key program available for PACIA members is the Rewards program funded

through the Sustainability Covenant. It provides valuable financial backing for

companies to implement the Sustainability leadership Framework within operations

based in Victoria, and possibly applied elsewhere.

The Rewards program supports companies to investigate, research or pilot significant projects that will create

a step change or transformation for the site, company or industry.

Calling for Sustainability projects

- Expression of Interest Form (EOI)

PACIA is pleased to be able to off er members fi nancial support through

this unique assistance program.

Rewards

Program

Skilling up with Energy Management workshops

Struggling to develop a reliable energy plan that will gain the support of

colleagues and management?

Spend 16 uninterrupted hours over 8 weeks, in workshops with industry

colleagues under guidance of industry experts who you can also call for expert

advice for 2yrs. You also cover water, materials and waste.

Open to all industry not only plastics and chemicals you can encourage suppliers

and customers to attend. Sessions can be run anywhere in Australia. This

program is supported by Sustainability Victoria.

Next Step - Energy Plan Review and workplace adoption

The Rewards program provides funding for a range of projects that can support PACIA member

companies (large and small) implement the Sustainability Leadership Framework. The program aims

to assist in delivering signifi cant on the ground outcomes for the environment and the economy.

Applications are welcome from signatories to the Sustainability Leadership Framework, with operations in Victoria

seeking to go beyond compliance and venture into new territory. While projects will be focused around Victorian

operations and sites, the lessons and applications can be national and international in scope.

The Rewards program supports PACIA’s Sustainability Leadership Framework and is funded through the

Sustainability Covenant with EPA Victoria.

The Rewards program is unique for its capacity to support companies investigate, research or pilot signifi cant

projects that will create a step change or transformation for the site, company or industry.

Projects supported to date include the following:

■ Exploration of business opportunities for a ‘waste’ product, diverting it from landfi ll

■ Design and testing of water treatment pilot plant, enabling 40% recycling back into product and cooling towers

■ Investigation and trial of ‘waste’ product recovery with suppliers and customers in supply chain

■ Complete energy, water and steam balance and reconfi guration for diff erent operating regimes for multiple

plants on one site.

Projects that achieve the following will be considered:

■ Change business systems and models to integrate sustainability strategy

■ Improve resource effi ciency

■ Demonstrate original solutions to resource use or the avoidance, reduction or reuse of waste

■ Integrate life cycle thinking into product design and business strategy

■ Develop innovative processes or products that improve the ecological footprint

■ Collaborative projects within a supply chain to improve resource effi ciency

■ Investigation of feasibility of new processes, systems or products that deliver improved sustainability outcomes

■ Enhance the potential outcomes from other funding opportunities.Continued overleaf

and accountability.

Companies access practical strategies, tools and programs across three key action strategies:

1. Operations in the workplace

2. Activities in the market and supply chain

3. Transformation through breakthroughs including material and resource use, new technologies and collaborations.

To assist signatory companies PACIA has developed

a ‘Roadmap to Integrating Sustainability’. Companies identify their current and future desired destination, selecting PACIA’s programs and support that will help them progress forward from Compliant to Champion.

1. Compliant

2. Aware and measuring

3. Driven and setting goals

4. Proactive and looking further

5. Integrated and collaborative

6. Champion.

Case study