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Case study

Duc Phong Company Limited

19/02/2012

Duc Phong export bamboo and rattan production factory was established in 1993 with its transaction unit at the export station of Foreign Trade Department of Nghe An province. In 2003, the company started signing contracts with IKEA Group (Sweden) with number of standing workers of 26 people and other village labours of 1500 to make 2-layer bamboo products. Currently, the company has 66 employees in which the number of female staff is 32 with an annual output of over 600 bamboo products

Before applying CP, the serious problem of the company is the loss of raw materials, waste water and emissions. Current wastewater has BOD5 (420mg/l), COD (1625mg/l), and color concentrations (1440 Co-Pt) exceeding the limit values in the standard TCVN 5945-2005 in column B up to many times. A plant emission of SO2 concentration (1650 mg/m³) also exceeds the allowed limit. Turbidity of the water treatment tower factory is not enough power to condition the material losses and costs of wastewater treatment and also as part of the country rain runoff polluting the environment surrounding area. For solving these problems, in 2009, the company received the support from the Ministry of Industry and Trade via the Cleaner Production in Industry Component (CPI) to conduct Cleaner Production Assessment and Application

Under the supporting of Ministry of Industry and Trade, on August, 2009 the Company had implemented CP assessment. During the first phase (from August 2009 to January 2010), the company established a CP team led by Mr. Thai Dai Phong –Director of the company and other 8 members to assess the whole 2 layer bamboo lantern production line. After the Cleaner production assessment (CPA) and identification of waste line, the Team has conducted mass and energy balances for the whole production line. All collected data have been used to analyze and identify Cleaner Production options for each production step.

After conducting CPA and identifying improvement options, the company had implemented 16 CP options can bring quick results with a total investment of VND 100 millions. Such application has brought about VND 3,5 billion in 2010. In the second phase (January 2010), under the supporting of technical and financial components CPI (1:38 billion), the company has actively implemented high-investment options to address thoroughly the emerging environmental issues as construction termite and wood worm fighting system, construction insulated house to store the final products, construction a close sulfur drying room with exhausted gas treatment system. Benefits from those solutions are 1.4 billion dong in 1st and 2nd quarter of 2011 by reducing production norms.

Particular benefits derived from Cleaner Production are as follows:

Technical benefit Economic benefit Environmental benefit
 Phase 1  All parameters meet national standard and regulations

Reduction of 100,000m3 wastewater

Dust concentration decreased from 18.5 mg/l to 3.15 mg/l, meeting National Standard
 Reduction of 24,1% specific consumption of material    

Saving 3,5 billion dong
 Phase 2  
Reduction of 38,2% specific consumption of material    Saving of 1,5 billion dong in 1st and 2nd quarter of 2011

Typical Cleaner Production options of the Company are as follows:

No.CP OptionInvestmentPerformanceCP technique
 1 Closely checking the age and quality of bamboo, avoid crack and broken bamboo             

No costEnsure quality of material inputsGH
 2Bamboo should be cut into pieces and dried at the sources to reduce transportation cost and bamboo should be selected before transporting to the company Low cost Ensure quality of material inputsGH
 3Final products should be dried to get required dryness before putting in store.No costIncrease  product qualityPC
 4Make heat resistance parts for the workshop

34 million dong Increase labour productivity, reduce the impact on the worker health GH
5Products after dipping in glue solution should be left to drain out all glue before taking it to drying process    

No costIncrease  product quality, reduce chemical evaporationGH
6Replace the old modified fan 1,4 kW by new ones (10 fans)15 million dong Saving of 27.6 million dong/year  GH
 7Insulate the steam supplying pipes from the boilers to the drying area  25 million dong  Saving electricity GH
 8  Gradual replace the existing lighting bulbs by energy saving lighting bulbs  25 million dong Saving electricity   GH
 9Construct termite and wood worm fighting system2.4 billion dong  Reduction 300 tons bamboo affected by termite.
Saving up 900 million dong
 EM
 10 Construct insulated house 825 million dongSaving of
91 million dong by reducing 15% amount of products being fungi and mould attacked
  EM
11 Invest in machine, equipment to make useful products         

780 million dong   Financial benefit 249 million dong/year, reused
60% waste bamboo into production, 40% for boilers
OR
 12Construct a close painting room and solvent treatment system               EC

278 million dongSignificantly reduce levels of toxic solvents as toluene, azitilene in the airEM
 13Construction of an environmentally-sound product treatment system using sulfur

894 million dong Thorough handling of excess SO2 into the environment arising    EM

Remarks: GH: Good Housekeeping; EM: Equipment Modification; PC: Process Control; OR: Onsite Recovery

Perceiving the benefits from CP application, the company insisted to maintain the CP team activities and integrate CP in the general management system at place. In order to facilitate CP application, a simple environmental management system has been developed. The Company has also set up environmental policy, whereby it is requested that the environmental protection law and other regulations should be followed strictly, ensuring the sustainable development of the company and reducing waste emission sources. The Company has integrated process management system with the environmental management system, therefore, energy and material consumption is monitored at the same time with the monitoring of pollutant parameters in the waste streams.

An environmental monitoring plan has been initiated. The aim of the plan is to monitor significant improvements from applying CP or to adjust if there is any reduction in environmental benefits. Environment monitoring system includes monitoring air quality and wastewater.

CP not only brings about benefits from energy saving, emission minimization, reduced water consumption, but also helps the Company increase production, improve product quality, and prove prestige. The implemented CP options at the Company are a typical case study for enterprises in the sector of rattan production in Vietnam./.