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Description
IZA SRL has designed a development strategy that contributes to EU’s target of transitioning from plastic to biodegradable and reusable packaging products. The existing production capacity permits the company to offer limited quantities of recycled products although the available plastic waste is 10 times higher than the quantity that is currently used in the production. To deal with this problem, the company will invest in new equipment to diversify the company’s production by using more environmentally friendly technology in the production flow. The new recycling line will use less resources like water and energy compared to the existing line.
The investment will strengthen the company’s position and development, while making the process greener. This will also help the company to gain new clients that need raw material for their production and clients that need recycled plastic films, foils, biodegradable and recycled plastic bags. Key activities include:
- Project management with assistance of a consultant.
- Project promotion of outputs and results.
- Audit conducted by an external auditor.
- Investment activity which includes purchasing and implementing state-of-the-art energy efficient equipment.
- Trademark registration to protect their “green brand” which they will build up.
CO2 emissions are estimated to decrease by 10.820 tonnes in 2023 compared to baseline year 2019. Annual collection of waste from production and operational process for re-use or recycling is estimated to increase by 4.700 tonnes for the same period. The project is also expected to generate 10 new jobs.
Summary of project results
At the beginning of the project, the Promoter had a limited production capacity which did not meet entirely the demand of the existing clients for recycled plastic and biodegradable packaging. Moreover, the plastic waste which was at its disposal as raw material is not fully used. The technology used by the company was insufficient for the increased market demand and for the needs of the existing clients. It also lacked advanced features, used significant resources (fuel, water, electricity) and involved high maintenance costs. The project aimed to address these shortcomings, diversify the production line by investing in advanced, environmental friendly technology. Through project implementation IZA SRL has diversified its activity and is able to manufacture recycled and biodegradable packaging (foil bags, biodegradable foils, household bags on the roll).
The Promoter has invested in the following equipment:
- 1 Recycling Line (for washing and granulation of plastic waste)
- 1 (FM 800) High Speed film blowing machine ABA 3 layers for biodegradable and recycling materials
- 1 (FM 1200) High Speed film blowing machine ABA 3 layers for biodegradable and recycling materials
- 1 (BTHQ-500*2) Full Automatic High Speed Biodegradable T-shirt Bag Making Machine
- 1 (DZB-800) Computer Control High-speed Vest Rolling Bag-making Machine (Double layer)
- 1 (HYT-41200) Middle speed flexo printing machine
The investment produced positive results in terms of competitiveness (forecasted increase in turnover and net operational profit), production capacity, product quality and better environmental and has socio-economic effects at the community level.
The Promoter reported the below indicators as being reached or on trach for implementation within the set deadline:
a) Estimated annual growth in turnover: 292% in 2024 compared to baseline year 2021: This indicator will be achieved in 2025 as the project implementation, including installation of industrial equipment finalized in late 2023, while the production itself will start in 2024. However, according to preliminary dates in 2023 the Project Promoter achieved about 7, 274,000 RON turnover, meaning a 30.67% increase compared to 2021.
b) Estimated annual growth in net profit: 492% in 2024 compared to baseline year 2021: This indicator will be achieved in 2025 as the project implementation, including installation of industrial equipment finalized in late 2023, while the production itself will start in 2024.
c) Estimated increase in number of new job created: 10. This indicator has been already partly achieved, compare the baseline year 2021 was 29, while in end of 2023 was 35
d) 1 trademark registrated, this indicator has been achieved.
e) Estimated annual CO2 emission reductions: 10820 tons of CO2 eq./year; in 2023 compared to baseline year 2019: This indicator will be achieved in 2025 as the project implementation, including installation of industrial equipment finalized in late 2023, while the production will start in 2024.
Below indicators will be achieved in 2024 as the project implementation, including installation of industrial equipment finalized in late 2023, while the plastic waste recycling and recycled plastic production will have the first operation year in 2024.
- Estimated annual collection of waste from production and operational processes for re-use of recycling: 4 700 tonnes in 2023 compared baseline year 2019.
- Estimated annual decrease in energy consumption: 120 megawatt hour in 2023 compared to baseline year 2019
- Estimated annual reuse of processed waste for other operational processes: 4 700 tonnes in 2023 compared to baseline year 2019
- Estimated re-use or recycling/recover of materials: 6 000 tonnes in 2023 compared to baseline year 2019