Multipak Circular Economy

Multipak

12. Responsible Consumption and Production 13. Climate Action 15. Life on Land

Overview

The objective of this project is to share through AIM2Flourish the innovation that Multipak achieved for making the company Sustainable. They achieved this by applying 4 projects that impact the three core values we learned in class, these are: social, economic and environmental values.

Authors

Cecilia Guardales

Cecilia Guardales

Andrés Azael Morales Dávila

Andrés Azael Morales Dávila

Luis Guerrero

Luis Guerrero

School

EGADE Business School Tecnologico de Monterrey

EGADE Business School Tecnologico de Monterrey

Professor

MARTIN H BREMER

MARTIN H BREMER

Innovation

The innovation consists of 4 projects applied in favor of the sustainability and profitability of the business. The projects achieve an economic, social and environmental impact:

1. Use of waste (sawdust) to generate heat energy in the manufacturing process.

a. The waste of sawdust is used 100% in the same company for stoving and drying of wood.

b. The drying process requires heat energy to remove the moisture of wood to obtain a more durable product.

2. Use of waste (chips) for sale to manufacturers of MDF boards.

a. The chip waste is used 100% for selling to MDF fabrication

b. Wood chips are a prime source for building MDF.

3. Recycling pallets with major subsidiary customers.

a. The pallets discarded by the main customers such as Viakon and Magnekon are recovered.

b. If required for a rework, reclaimed pallets are available for sale at a reduced price.

4. Development of suppliers to take advantage of the raw material plywood more efficiently.

a. The sheets of plywood are available in the market only in standard sizes, a supplier was developed to manufacture special measures.

b. With the plywood in special measures, the waste is reduced and the manufacturing process of balls for reels is efficient.

Multipak Circular Economy

Inspiration

The original idea of these projects is based on the mission, vision and values of the Multipak company, where they are mainly inspired to improve the profitability of the business by generating sustainable practices. Multipak has conceived the idea of applying a circular economy to the extent of what is within reach, this motivated the project to take advantage of the waste it generates to use in their own processes as with sawdust and as raw material for other businesses such as is the case of the splinter.

Through the responsible use of resources, it generated the idea to develop suppliers that will adjust to the supply needs of plywood to generate less waste, on the other hand there is the system to recycle pallets with customers.

Overall impact

The company has seen the following positive impacts in its operations:

1. 65% of the wood used has been certified by Semarnat

2. The usage of raw wood has decreased by 4.6%

3. 94% of the waste is being sold as a sub product (wood splinter for panels)

4. Usage of 3.3% of the sawdust to generate energy

5. Pallets recycling program for 10%

Business benefit

The company has found many benefits both economic and sustainable, such as:

1. They are confident that raw materials they use follow a formal process that is sustainable

2. Reduction of raw wood through a new design and optimization of the process, products and raw materials

3. Recycles the waste by sending it to third party to fabricate new wood products

4. Contributes to the circular economy by reincorporating the waste into the supply chain

5. Recovers finished product from its suppliers to integrate it into its recycling program

6. Annual economic impact: $33.5 million pesos.

Social and environmental benefit

By implementing this program, Multipak has been able to ensure that the wood they procure comes from certified suppliers that operate in sustainable woods. In addition, the suppliers need to follow the existing environmental laws.

Multipak also helps promote the re-usage of wood in the society by offering recycled wood reels and pallets to the market. And, most importantly, it contributes to a circular economy by using waste and moving it back to a productive process.

The environmental impact for a year is: 24,842 trees, equivalent to 500 tons of CO2.

Interview

Guillermo Herrera García, Commercial Manager

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Multipak

Multipak

Monterrey, Nuevo Leon, MX

Business Website: http://www.multipak.com.mx

Year Founded: 1942

Number of Employees: 501 to 1000

Multipak is one of the main producers in Mexico of Wood and Triplay Reels, they also have a wide range of solutions for various industries. All of their products comply with the highest norms of manufacturing and quality control. They have a variety of certifications through the whole process, this assures that the delivery of the products is done with the highest attention, time efficiency and quality.