Innovation

In the heart of the Visayas region, particularly in the city of Himamaylan, BJS Scrap Shop is making waves with its innovative business model focused on waste management. The company has carved out a niche by being the leading recycling plant in Himamaylan City and is responsible for purchasing and processing scrap metal and single-use plastics. The processed garbage is then sold to factories in China, where it is further manufactured into reusable products such as plastic chairs, hangers, and pails.

The creation of this business involved a dedicated team of more than 70 individuals within BJS Scrap Shop, including its founders, machine operators, and garbage collectors. Founded by the Sian family, they identified the market need and established a solution to address the waste management problem while operators and collectors managed the recycling processes. The family forged partnerships with government and private entities, facilitating waste collection and ensuring the efficient sale and distribution of processed materials to factories in China. The Sian Family believes they can give back to the community by repurposing discarded materials into reusable plasticware. Their operations significantly reduce the volume of waste that would otherwise end up burned or in landfills, thereby minimising environmental pollution and conserving natural resources.

"So once we send the garbage or the compacted garbage to China, it will go through another process [in the] factories there. And then the end product, like hangers, they would sell it again to wholesalers or retail shops here in the Philippines," Jiea Sian, co-founder of BJS Scrap Shop, explains.

Inspiration

This business venture emerged when the Sian family came across the opportunity to purchase recycling equipment from one of the patriarch's business partners. Given that the family grew up in Himamaylan City, they are well aware of the pressing need to address the growing waste management problem in the area. Sian explains, "Himamaylan has always been home to me, but there is no denying that there is a serious waste problem that is obvious for everyone living – or even just visiting in the city."

The family recognised an opportunity to contribute to this problem and decided that it would be both a profitable and sustainable business model for them to pursue. It was an easy decision for the family to make as they addressed the city's need for proper waste management by recycling waste materials, thereby reducing the amount of garbage ending up in landfills. Additionally, they saw a market demand in China for everyday plasticware, which provided a viable economic opportunity to sell processed materials to factories producing plastic chairs, hangers, pails, and other items.

"It started when one of my dad's business partners sought a place in Himamaylan to put up a factory. And then it just so happens that we do have a place for him where he can set up the factory. And when my dad saw the whole operation, he liked it." Sian describes their humble beginning.

Overall impact

Upon the start of the recycling plant's operations, it was easy for the Sian family to process the materials necessary for their buyers in China. The amount of garbage needed to be managed appropriately meant that they had much waste to work with. With the government's support, they easily accessed garbage from various communities in the city. Additionally, with strong support from the government, they obtained waste from different communities in the city. "When we first established the factory, we aimed to regain capital because the investment was expensive. So we had to double time—we didn't earn much for the first two years, [just] breakeven because we had to get our capital back." Sian explains.

By effectively managing and recycling waste materials, BJS Scrap Shop has also improved the community's health. Sian claims that since the start of their business, her father, the company's founder, was pleased with the output of the machines they invested in. After operating for a while and gaining footing within the community, the company has partnered with LGUs to improve waste management and cleanliness in Himamaylan. Together, it achieves the clean and green Himamaylan initiative being implemented in the city, wherein the city invests in ways that can environmentally improve the status of the town. "Because these plastics are non-biodegradable, it has long-term negative effects. So with our factory, I'm not sure if it's that much of an impact now because, you know, we're just a small business, but we'd like to think that it helps. It helps lessen single-waste plastic, and it helps lessen the carbon footprints that, you know, this garbage should leave behind." Sian highlights.

BJS Scrap Shop has seen other immediate benefits, such as a reduction in local landfill waste. Sian predicts their operations will also contribute to long-term effects, such as infrastructure development. She states that because Himamaylan has been developing as a city, citizens are more educated about where trash should go because of the different environmental initiatives they are a part of. It has been observed that the air is fresher and the city is more aesthetically pleasing. Moreover, as the city and the business continue to develop, they can provide more jobs to the people of Himamaylan. "Himamaylan was recently awarded, it was like a provincial award, I think, like one of the greenest and cleanest cities, I think, in Negros. So, the mayor acknowledged the factory for being a key player in that award." Sian proudly mentions.

Their impact is also evidenced by several concrete indicators, such as the steady increase in the volume of scrap metal and single-use plastics processed by the company, strong partnerships with government entities and private sectors, ensuring a continuous supply of raw materials and market access, and a measurable reduction in the amount of waste ending up in local landfills, contributing to environmental conservation.

"We would partner with establishments like cafes and karinderias (Filipino eateries). So they would have a black rubber trash can you would see in the parks (districts)... It would be set outside the entrance of their establishment. And then after a whole week, one of our employees would go there, get the trash, and then bring it back to our factory." Jiea explains the collaboration with local businesses.

Business benefit

The company benefits from reduced raw material costs, primarily utilising scrap metal and single-use plastics collected from Himamaylan. This cost-effective approach allows them to maintain lower production costs while maximising output. Sian affirms that the business continues to be profitable. Despite their high starting expenses to procure machines and equipment, the nature of their business results in little to no overhead cost. The more garbage, waste materials, and scrap metals the business procures, the more it earns.

"Although the capital we had to put out cost millions because the machines are costly, we don't have any other overhead expense. You know, it's not like a food business where you have these different kinds of expenses. What we do is we gather the resources, like the waste that's already there." Sian explains.

Additionally, BJS Scrap Shop maintains fruitful partnerships with local cafes and karinderias, as these establishments continue to provide waste materials, ensuring a continuous supply to the business. These partnerships can also create an avenue for BJS Scrap Shop to increase its brand awareness and recognition in Himamaylan City and neighbouring areas.

Social and environmental benefit

BJS Scrap Shop substantially benefits society and the environment through its innovative recycling business model. Their effective waste management solutions significantly reduce the volume of scrap metal and single-use plastics in landfills, addressing a critical environmental issue. Moreover, BJS Scrap Shop promotes a circular economy by transforming waste into reusable products, which reduces the need for raw material extraction and lowers greenhouse gas emissions. Through these efforts, BJS Scrap Shop contributes to a cleaner environment, raises awareness, and educates communities about responsible consumption and sustainable waste management.

Intentional or not, BJS Scrap Shop's operations align with the United Nations Sustainable Development Goals (SDGs), specifically SDG 9: Industry, Innovation, and Infrastructure, and SDG 12: Responsible Consumption and Production. By promoting sustainable industrial practices and responsible waste management, the company builds resilient infrastructure and fosters innovation—essential for sustainable development.

Through its innovative business model, BJS Scrap Shop addresses a significant environmental issue and paves the way for a more sustainable and responsible future. Their efforts highlight the importance of transforming waste into value, showcasing how businesses can promote environmental sustainability and contribute to a circular economy.

Interview

Jiea Therese Sian, Co-founder