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Case study

Vinh Phu Shoes Joint Stock Company

19/02/2012

The Vinh Phu Shoes Joint Stock Company was Viet Tri Leather and Shoes Factory, established in 1992 and in 1996, the company renamed to Vinh Phu Shoe Company. Production line has registered capacity of 1 - 1,2 million pairs/year and currently the production is from 500 to 700 million pairs/year with total employees from 550 to 650 persons.
The company locates in Viet Tri city, Phu Tho province.

Before applying CP, the biggest environmental problem of the company is used 20 tons of toluen solvent, it was noxiuos and raised by using toluen solven in glueing process . In the production process, solvent was lost, causing environmental pollution which affects workers’ health. In addition, the company released a solid waste as pieces of leather, cloth etc., which the total of over 100 tons per year. These are the high proportion of fuel in the production cost, if the savings will reduce production costs. For solving these problems, the company had accessed the Cleaner Production in Industry Component (CPI) in the Ministry of Industry and Trade (MOIT). Under the supporting if MOIT and Vietnam Cleaner Production Centre, in 2007, the company had implemented cleaner production assessment (CPA).

During the first phase (from February 2007 to October 2007), the company established a CP team led by Mr. Bui Manh Hung – Deputy Director of the company and other 9 members who are managers of factories, technical staff of professional departments to assess CP the whole production line which focusing in export shoe 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 has carried out some no-cost and low-cost good housekeeping options with a total budget of VND 350 million.  Besides the Company has actively implemented high-investment options to improve the product quality and solve completely the environmental issues at place, such as invest 909 million dong for installing new ventilation, improve chemical and solid waste storehouse. Such application from 2008 to 2009 has brought the company VND 186 millions, 980 millions. Especially in 2010, the Company has gained the financial benefit of VND 4.36 billions (in which VND 1 billion was from reduction of raw materials and fuel, VND 72 millions were from increase of productivity, VND 3.2 billions were from labor reduction. Particular benefits derived from Cleaner Production are as follows:

Technical benefit Economic benefit Environmental benefit
 Phase 1: (2007 - 2008)   
Reduction of 2,2% of leather and leatherette specific consumption Saving of 490 million dong Improve working environmental quality for workers

 Reduction of 150 kg of  VOC into environment

Reduction discharged toluene into environment;

Annual reduction of 86,4 tons of CO2

 
 Reduction of 1,4% of fabric specific consumptionSaving of 81 million dong 
 Reduction of 1,9% of glue and chemical specific consumption  Saving of 206 million dong   
 Reduction of 19,5% electricity specific consumption   Saving of 192 million dong   
 Reduction of 2% solid waste amount/product     Saving of 6,5 million dong   
  Phase 2: (8/2008 - 2010)
 Reduction of 7% leather and leatherette specific consumption (compared to before applying CP)  Saving of 390 million dong Annual reduction from 5 to 10 tons of solid waste

Improve working environmental quality


Labor productivity increased from 5 to 10%

Annual reduction of 1% of chemical consumption (equivalent 1.67 tons of chemical)

 Fire prevention
 Reduction of 2% of fabric specific consumption          Saving of 114 million dong   
Reduction of 2,3% of glue and chemical specific     Saving of 245 million dong   
Reduction of 25,3% of electricity specific consumption     Saving of 272 million dong 
 Reduction of 8,4% of solid waste amount/product      Saving of  27 million dong

Typical Cleaner Production options of the Company are as follows:

No.CP OptionInvestmentPerformanceCP technique
 1Make most of leather, leatherette, clothes waste in smaller detail       

80 million dongAnnual saving of 1,1 billion dong

Reduction of 9,5 tons of solid waste/year   

OR
 2 Buy good quality – leather, leatheretteMC
 3 Cutting machine controlled by skillful workers  GH
 4 Pay attention to cutting process to make precisely cuttingPC
 5Workers use enough glue         

 20 million dongAnnual reduction of 3 tons of glue (equivalent 150 kg of VOC discharge to environment)
Improve working environmental quality for workers
 GH
6Replace T10 lamp by T8 lamp           

30 million dong Annual reduction of  120,000 Kwh of electricity (equivalent annual reduction of 86.4 tons of CO2)EM
7Introduce balancing capacitor at electric boards in each workshop 15 million dongEM
8Replace iron suitable for each detail  

10 million dong EM
9Repair air pipes   7 million dong GH
10Improve storehouse of waste   

416 million dongLabor productivity increased from 5 to 10%

Annual reduction of 1% of chemical consumption (equivalent 1.67 tons of chemical)

Fire prevention


GH
 11Introduce new ventilation   475 million dongEM
 12Improve chemical storehouse 18 million dongGH

Remarks: GH: Good Housekeeping; EC: Equipment Change; PC: Process Control; OR: Onsite Recovery, MC: Material change

Perceiving the benefits from CP application, the factory 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 factory 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 factory 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. A sample system and legal procedures are built and applied for environment data collection, checking, classification and data analysis.

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 leather production in Vietnam./.