Innovation

INNOVATION

Mark Eugene Tan founded Palmeco Philippines in 2011 when he was introduced to the Palmeco material by a Hong Kong-based friend and learned more about the company from him. Since then, he has been promoting and distributing the company's eco-friendly construction materials in the country for the past two decades.

The Palmeco Board, created by a team of research and development specialists, is a board used in construction or furniture manufacturing that is well-crafted to be fire-resistant, waterproof, pest-proof, and mold-proof. Creating Palmeco boards undergoes three processes: procurement, production, and practicality.

Palmeco produces eco-boards and wall-insulated panels crafted from biodegradable waste like coconut husks. These husks usually are thrown away due to their potential to cause soil erosion, flooding, and road blockage. Hence, this waste is repurposed by Palmeco during its procurement process and used as an integral component in creating its construction products.

"Unlike plywood and other traditional boards, they are all wood-based. So, you would have to cut trees to produce your ordinary four by 8 plywood used in construction. But for Palmeco, there is no need to cut trees, which is very environmentally friendly in our industry."

The second stage involves its production. The fiber from coconut husks is compacted with other ingredients to create a sturdier material. At this stage, regular cementitious products excavated from mountains require baking in a conveyor belt to achieve their sturdy nature. However, Palmeco boards are not baked. Mr.Tan mentions, "There is no energy or electricity needed; [we need] just room temperature for 14 days to cure it and land on the finished product itself."

Sustainability is also being integrated into the application stage because of the product's reusability. Mr.Tan further explained the afterlife of Palmeco boards, "you can take it out and reuse it again and again. Meaning, you can take out the nails and install them in another area or use it as furniture. Unlike others that would have only one to three uses then [it proceeds to the] dumpsite."

In its three-stage process (procurement, production, and practical use), Palmeco boasts an integrated sustainable framework that is not only easy to use but also easy on the planet.

Inspiration

INSPIRATION

Fifteen years ago, Mark came across the Palmeco board and realized how it could change the game in the construction industry. He had already been building houses and renovating but had never seen a material quite like it. After learning that Palmeco was sustainable from top to bottom, a new passion ignited him to pursue a green route toward a more environmentally-friendly future for construction services.

Mark knew the Philippine market well and noticed that traditional engineers usually use a more recognizable building board than Palmeco. The hesitancy to use the product might stem from its alienation from ordinary and well-trusted materials. Doubts may have formed from the uncertainty towards navigating the product. When proposed to clients, skepticism was common among them. Mark responded by expounding on the type of innovative materials Palmeco had. He recalls a meeting with McDonald's Philippines, where the company questioned if the Palmeco Board was rodent-free. Mark confidently responded, "I guarantee you if nakalusot ang daga sa isang storage [unit] made from Palmeco, isauli mo yung boards (I guarantee you, if a rat goes through a storage unit made from Palmeco, return the boards to me)." The queries made him even more enthusiastic to prove the quality of the product. The hesitation of potential clients may have driven Mark and his team to continue to look for ways to innovate, making Palmeco Board even more appealing to the market.

Bringing in a relatively new product would be a huge challenge considering the aggressiveness of competitors and with already existing construction materials that are preferred by many. However, it was time to rethink the future, which entailed challenging the status quo that has long been pounded on the construction industry. Moreover, with the Philippines constantly facing different environmental issues, there is a need for a product that may help alleviate climate change, environmental degradation, and deforestation, problems that are becoming more and more evident today.

Palmeco aims to spearhead change as they pioneer Green Building Technology to promote the use of eco-friendly and resource-efficient materials in all aspects of building design, construction, and renovation in hopes of leading the transformation to a more sustainable environment for all Filipinos.

When asked about his motivation and purpose for innovation, Mark had this to say:

"In my personal walk in life, generally, I look for legacy. We cannot stay forever… and want to have something to stay." Mr. Tan then challenged the new set of young entrepreneurs by asking, "What have you done in this world that is deserving of your name being remembered, repeated, by generations to come?"

For everyone at Palmeco, "Green is their calling." Mark and his team constantly strive to build new and better solutions to provide functional and efficient benefits to every construction project. Through this mindset, they can create superior quality materials that exhibit excellent performance for each client.

Overall impact

IMPACT

Palmeco boards change the narrative of the Philippine construction industry. Before the conception of Palmeco, there was no considerable sustainable construction material in the market. Most building materials are purely cement and plastic, which threaten the environment of its extensive production process. Introducing Palmeco construction boards allows architects, engineers, and real estate developers to be more conscious of the materials used in their projects. In addition, Palmeco's low-energy, low-waste process guarantees a greener approach to building infrastructure.

Consequently, end consumers are given superior products that reduce repairs and contribution to non-biodegradable wastes. Additionally, the boards are easier to transport and install. Hollow blocks, typically used in construction, need water and lumber support to create a finished outcome. On the other hand, Palmeco needs little assistance. Mark states, "Palmeco is a finished product so that you can install it [easily]." The accessibility of Palmeco products is advantageous to the country's geographical profile, which could pose logistical problems. Mr. Tan recalled that he had seen the most significant impact of Palmeco on his clients with resorts due to its hard-to-reach locations. With accessible construction materials like Palmeco boards, his clients can efficiently construct their dream infrastructures.

But more importantly, Palmeco's board safeguards its consumer's quality of life because it values money, is safe from harsh vapors, and is easy to work with. With these components in mind, Palmeco advocates for overall prosperity.

Business benefit

BUSINESS BENEFIT

Unlike ordinary cementitious products, the Palmeco Board is not baked. The usual cement baking process is resource intensive, needing 2,700 degrees Fahrenheit. Hefty machinery uses a considerable amount of energy to achieve a specific temperature, which could cost thousands in energy expenses. Moreover, an immense volume of water is also used for processing cement blocks. Water binds the dry ingredients together to form a solid structure like hollow blocks. Once cement bricks are hardened and ready to be used, water is again required for cement paste to erect a wall. All these profound uses of resources are costly and wasteful.

Palmeco's straightforward production process reduces the volume of required materials. The company claims its products have been proven to use about 90% less energy than cementitious building materials and emit close to zero carbon emissions, significantly lowering environmental impacts and producing less air pollution. Additionally, the easy-to-install products reduce overall expenses for construction. The Palmeco Geoboards weighs 22 kg/m2 compared to ordinary boards that weigh 60 kg/m2. Therefore products are easier to load in trucks and entail less travel time, making them more cost-effective than leading construction building materials.

The new product in the market paved the way for a business venture in the Philippines. Around 13 years ago, Palmeco had to undergo multiple screenings by government commissions to legalize the paperwork. Mr. Mark Tan recalled that they had to teach the government to classify a new product because of its nature as a biowaste. "[We] must register with the SEC to make a new product classification. We also had to teach the government what it is." Finally, after a tedious process, Mr. Tan received the necessary paperwork to operate, which opened new opportunities for him and Palmeco in the Philippines.

Being a trailblazer opens a new industry in the Philippines and puts recognition on the company. The company has reviewed multiple certificates and awards, namely: Green Choice Philippines, Hong Kong Green Label Certificate, Taiwan Accreditation Foundation, CSIRO Australia, National Housing Authority, Philippine Government Electronic Procurement System (PHILGEPS), and Department of Science and Technology Forest Product Research and Development Institute (DOST-FPRDI Philippines.) In addition, the commendable innovations have recently gained company recognition from the United Nations. On May 16, 2022, Palmeco received the UN's SDG label certificate for its adherence and commitment to achieving and promoting SDG 11: making cities inclusive, safe, resilient, and sustainable.

Social and environmental benefit

SOCIETAL AND ENVIRONMENTAL BENEFIT

The Palmeco Board is claimed to be "the healthiest and greenest building board available today on the market that offers unparalleled high impact strength, flexibility, and durability." Through AICH tech and other patented research and development processes, Palemco uses green technology to provide ecological solutions and options that will widely influence and develop ordinary construction processes and practices.

Palmeco ensures that "efficiency is built into Master Boards to achieve better business outcomes and a high quality of life for the end user." The Palmeco Board is as strong and durable as regular plywood. However, because of its extra components, it is fire, moisture, and insect and rodent-resistant, making it far superior to other construction materials. Additionally, Palmeco prices its boards similarly and slightly higher than other plywood brands. But, considering that it is easily handled with saws, drills, nails, and other power tools, its versatility makes it stand out from other construction and fiber boards. The features guarantee a lifetime value of security and assured value for money. Hence, clients are getting their money's worth for this premium product.

These are only a few of Palmeco's competitive advantages. Palmeco Board has diverse applications in construction. Consumers can use it for external and internal walls, ceilings, wet rooms, floors, and many more. The variety that Palmeco can offer makes it a valuable building material that is both sustainable and cost-effective. With Palmeco leading sustainable construction, the Philippines can build one sustainable house at a time.

Interview

Mark Eugene Tan, Founder