PetStar

A Sustainable Business Model

Authors

Andrea Le

Andrea Le

Catalina Blanco

Catalina Blanco

Renatta Cantu

Renatta Cantu

Jesica Purata Zenil

Jesica Purata Zenil

lizeth refugio

lizeth refugio

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

Consuelo Garcia-de-la-torre

Consuelo Garcia-de-la-torre

Global Goals

8. Decent Work and Economic Growth 11. Sustainable Cities and Communities 12. Responsible Consumption and Production 13. Climate Action 17. Partnerships for the Goals

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Summary

By 2016, PetStar already had the capacity to recycle 3,100 million bottles annually, with the use of a business model that promoted the concept of inclusive recycling. To carry this out they have 8 collection plants strategically distributed around Mexico to provide certainty to scavengers and trash collectors who help the planet, and the economy every day by picking up bottles; a revalorization plants sub-products; and the recycling plant.

Innovation

The PetStar Sustainable Business Model (PSBM), is fully integrated into the value chain of PET bottles, from the direct collection of post-consumer bottles (with scavengers and collectors), all the way to the production of new PET bottles combining virgin raw materials with recycled content. Simultaneously, the PSBM considers circularity in its core business because it promotes local job creation, technological innovation, new products that respond to local markets and engages community members in its operation.

The PSBM is carried out by 3 main stages, which are composed of the series of phases listed below.

1. Collection Processes

  • Collection of Material: Different collection mechanisms with their own transport are attended.
  • Evaluation of Incoming Material: The material arriving from our collection mechanisms are inspected and evaluated with identification systems.
  • Selection of Materials: Once the material is admitted and evaluated, it is separated by color and containers of other plastics.
  • Compacting: The material separated is compacted, generating bundles with the dimensions and density suitable for more efficient storage and transport to PetStar.
  • Evaluation of the End Product: Later a meticulous inspection of the bundles is made to ensure that they are within the quality standard.
  • Storage: Once the product is approved, it is stored in lots for transfer to PetStar.
  • Shipping and Delivery: The bundles are shipped to PetStar in platforms covered with canvas, in compliance with the Federal Transport Norms.

2. Recycling Processes

  • Reception of bundles of PET bottles: the raw material is unloaded from the platforms and entered into the raw material inventory.
  • Storage of raw material: raw material is controlled and protected.
  • Feeding: the bundles are opened and fed into the process.
  • Prewashing of containers: the container surfaces are washed to eliminate the greatest possible amount of contaminants.
  • Detection and automatic elimination of contaminants: the contaminants entering with the pet containers are detected and eliminated with automatic detectors.
  • Manual detection and elimination of contaminants: contaminants eluding the automatic detection and elimination process are manually eliminated.
  • Mill: the containers are ground to convert them into PET flake in a controlled size.
  • Washing: the flake is washed using special chemicals to remove glues and other impurities.
  • Drying: the water is eliminated leaving the flake completely dry.
  • Homogenization: the quality of the flake is homogenized by recirculation.
  • Detailing: excessive dust, colored flake, and ferrous contaminants are eliminated from the pet flakes.
  • Storage of the flakes: the flake approved by quality assurance is stored and controlled.
  • Extrusion: the PET flake is melted, decontaminated in 85% and transformed into amorphous pet spaghetti. In the stage, the PET’s molecular chains are broken up by the thermal effect of extrusion.
  • Pelletization: the amorphous pet spaghetti is converted into pellets and chips with certain dimensions.
  • Polycondensation: the PET is 100% decontaminated and the amorphous pet’s molecular chains are: reconstructed, controlling the intrinsic viscosity (iv).
  • Cooling: the recycled PET resin (pellets) is cooled and sent to the silos for finished products, after evaluation and approval by quality assurance.
  • Pellet storage: the food grade PET recycled resin is stored and controlled.
  • External transport, hopper car: the product is sent to the customer in bulk using outside hopper car transport.
  • Loading in large bags: by special request from the customer, the product is sent in large bags of a defined size.
  • Outside dry box transport: the product is sent to the customer, using outside dry box transport.

3. Market Customers

  • Reception of recycled PET resin (RPR): The recycled PET resin is received in the facilities of customers producing preforms or containers.
  • The mixture of RPR with virgin resin: A predefined quantity of recycled PET resin is mixed with virgin resin.
  • Drying of the mixture of the material: The mixture of material is dried.
  • Perform injection: Preforms are produced with the injection method.
  • Blowing preforms: Preforms are converted into PET containers with the blowing method.
  • Labeling: The containers are labeled.
  • Filling: The PET containers are filled.
  • Product storage: The beverages in PET containers are stored.
  • Loading for delivery: The product is loaded onto delivery trucks.
  • Distribution: The beverages in PET containers are delivered to stores and supermarkets.
  • Consumption: The end customer enjoys the beverage.

A Sustainable Business Model

Inspiration

The main source of inspiration for PetStar is the preservation of the environment and the power to manage an activity that every day becomes more and more relevant. With the possibility of influencing at national and international level, it really compels Mr. Jaime Cámara to never stop and always be looking for where they can influence, inspire others, collaborate with their example, share their actions, and keep fighting for the idea that someday the mechanism will evolve, public policies will work, and finally the concept of shared responsibility between society, private initiative and government will be achieved.

Overall impact

The sustainable business model of PetStar its focused on maximizing the social, environmental, and economic benefits due to the recovery of bottles and produce more bottles with recycled content. Some of the short term effects of this innovation it’s that this recompilation activity prevents pollution, in 2016 it collected almost 80,000 tons, this data it’s equivalent to 70% of the bottles that its shareholders put in the market; in the social value, it dignifying the labor of scavengers and optimizing the living conditions, like the CEDIC program (Centro de Desarrollo Infantil Comunitario) that provides education, medical care, nutrition and life skills development services in Chimalhuacán, Mexico. This strategy also supports the objectives that the company has implemented for the long-term. By 2020, the company has the target of neutralize its carbon footprint, neutralize its water footprint and zero-plastic leakage and zero-waste.

Business benefit

By 2016, they consolidate their collection strategy, allowing them to eliminate intermediaries, who in their case don’t add value but to add cost, and allowing them to buy a competitive price more beneficial for their associate collectors and their gatherers. They were also able to advance significantly in making their supply chain more efficient, achieving less waste and maximizing use of all the bottles web buy and the sub-products that this mixed lot generates. The efficiency of this strategy allowed them to reduce 75% short term debt.

Social and environmental benefit

This innovation has benefited the environment in two ways. First, by reducing the amount of PET bottles in landfills, and as they are converted into PET food-grade recycled resin, the greenhouse gas emissions are 87% less than those of virgin resin (2016).

PetStar is very committed to its Tlatel Xochitenco community, providing their scavengers a stable and dignified income, as well as access to education, food and medical services to their 250 children. The company also opened a museum to increase environmental awareness and educate the community about the shared responsibility in recycling that the community, the government and private companies have.

Interview

Jaime Cámara Creixell, Founder & CEO

Photo of interviewee

Business information

PetStar

PetStar

Ciudad de México, CDMX, MX
Business Website: http://www.petstar.mx/
Year Founded: 1995
Number of Employees: 1001 to 5000

PetStar is a company in charge of the construction and operation of a bottle-to-bottle plastic recycling facility. With its sustainable business model, they seek to achieve the maximum social, environmental, and economic value, making up the circular economy of PET bottles from Coca-Cola México. Nowadays, PetStar is an international example of Entrepreneurial Social Responsibility(ESR) and a firm whose fundamental principle is sustainability.