project ”installation of pfandomats in shopping networks of fast moving consumer goods”

7/31/2019 Project Installation of Pfandomats in Shopping Networks of Fast Moving Consumer Goods

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SE Ukrecoresursy

Project Installation ofPfandomatsin Shopping Networks of Fast Moving

Consumer Goods


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Main Problems Negative Health Impact

Polluted Environment

Annual Increase of Accumulated solidwaste

Additional costs of purchase of rawmaterials

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Life Expectancy in the world

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Unauthorized Garbage Dumps inUkraine

Total:35 401

Chernihiv

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Vinnitsa

Donetsk

Lytsk

Lviv

Ivano-FrankivskCherkasy

Zhitomir

Kharkiv

Odessa

Rivne

Poltava

LuganskKirovogtad

Nikolaev

Kherson

Simferopol

Sumy

Khmelnytsky

Ternopil

Chernivtsi

Kyiv

Sevastopol

Uzhgorod Kyiv: 6 014

Donetsk Region: 3 946

Dnipropetrovsk Region: 3 101

Poltava Region: 2 175

Ternopil Region: 1 663

Kharkiv Region: 1 654

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Annual Landfill Flow

1 200 thousand tons of cardboard and paper

800 thousand tons of plastic

1 100 thousand tons of glass

50 tons of recycled paper save 1,5 million hectares of forest

Using cullet in glass production saves up to 9% of electricity consumption

and reduces the content of emissions into the atmosphere.

Recycled plastic is used in automotive industry, production of

clothes, household appliances, lacquer and varnish industry,

etc.

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SE Ukrecoresursy

Our Mission: to ensure national environmental security byreduction of solid waste disposal.

Increased utilization of secondary resources and involvement in

economic circulation helps to reduce the negative waste impact on

the environment and health of the population

Collection

Separatecollection

Sorting andremoving resource

elements

Using secondaryraw materials inthe process ofmanufacturing

Alternative fuel

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Main Tasks

Ensuring effective functioning of the recycling system ofdisposable containers and packaging materials ;

Implementation of separate collection of solid waste;

Reduction of landfill waste;

Establishment and operation of a system to monitorcirculation of packaging and packing materials, andensuring its utilization;

Ensuring cooperation with the European system ofpackaging management Pro Europe.

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About the strategy of UkrainianEnvironmental Policy till 2020

According to the Law of Ukraine OnGeneral Principles (strategy) of StateEnvironmental Policy of Ukrainebefore 2020 one of the mainobjectives is to increase the volumeof procurement and disposal ofwaste as secondary raw materialsin 1.5 times by 2020, introducingnew technologies of solid wastemanagement.

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Resolution of the Cabinet ofMinisters of Ukraine # 915

Resolution #915 entrusts the SE Ukrecoresursyexecution of the functions concerning developmentand implementation of the system for collecting,storage and disposal of waste, including domestic and

imported disposable containers and packagingmaterials, as secondary raw materials.

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The Ministry of Ecology of UkraineInitiative

Main tasks of the Ministry are:

1. Waste management state policy formation2. Realization of the environmental conservation state policy, ecological and within itscompetence biological and genetic safety, waste treatment

State Enterprise Ukrecoresursy started to implement the pfandomat adoption withthe direct initiative of the Ministry of Ecology of Ukraine

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International Experience

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Target Groups

Youth (financially dependant on parents)

Geeks (persons interested in new technologies and gadgets)

Active middle class and women conscious about environment

Pensioners and vulnerable populations

Small retailers accumulating packaging and packing materials

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Vending in Recycling

Recycling kiosks or pfandomats are being used in differentcountries for a long time. This practice is based on exchange of aluminumand plastic bottles for money, discount coupons for food or other goods.

The process is easy and straightforward for customers, as the idea comesfrom the principle of a vending machine, which is popular worldwide amongthe retailers. Implementation of pfandomats is also based on trade chains

and retailing principles. It is a sort of a reverse vending: a customer insertsdisposable package and receives some money or its equivalent instead.

Implementation of pfandomats are usually subsidized by state.

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The Largest Manufacturers

Germany :Wincor Nixdorf,Sielaff, Loetec, Trautwein,RTI-Recycling TechnologyInternational

Norway: Tomra SystemsRepant

USA : Envipco

Australia: Envirobank

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Project Content

Pfandomat (from German pfand- a pledge)is a machine exchangingaluminum cans, glass and PET-bottles from the population on cash orchecks that can be used in the shop where the machine is located.

It consists of two parts:

- the top contains a packing recognition device (with scales, scanner,photo-system for containers identification);- the bottom contains a capacity for sorted containers.

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Recycling kiosks types

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How Does It Work?

A customer inserts an empty can / bottle into the machine one by one

Scanning device is defining the packing type and compares it with thedatabase

Calculation of the bonus amount to be received, depending on the weightand packing type

Processing of a received unit of disposable packing (press, compactionetc.)

Customer service unloads a machine filled up with disposable waste forfurther processing.

Containers are sorted into 7 different fractions, pressed in bales, collected in5 cubic meters containers, aluminum cans are pressed in bales.

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How Does It Work?

Example:

Monthly 1machine collects approximately 32 tons of containers.

For monthly collected containers buyers will receive a discount in

the amount of 12.89 thousands UAH, provided by the trading center.

SE "Ukrekoresursy" compensates 10.31 thousands.

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container check check realization compensation


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The General Scheme of the UsedContainers Reception System

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How Do We Benefit?

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How to save onpurchases?

Providecontainers to

the shoppfandomat

Get a discount Buy something rightaway

SE "Ukrekoresursyreimburses to theshop 80 % of the

bill

Many checks many

customers

You pay 199 UAH,not 200 UAH and

help environment !

Lots of otherstuff

1 2 3 4

5 6 7 8

50 kop.

another 20%go for

pfandomatservice


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Pfandomat

Customers Benefit

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The tariffs on received containers will correspond to themarket value of the same kind of secondary raw materials(an average price at package collecting centers).

Name of secondaryraw materials

Prices for thepopulation

(UAH)

PET :transparent 2,10blue 2,00green 1,50brown 1,40

Cullet:transparent 0,15other 0,10

Aluminum cans 1,50


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Service Concept

SE Ukrecoresursy covers such expenses:

Electricity costs for the pfandomats functioning

Costs of acceptance of used packaging in retail units

Remuneration of the staff managing pfandomats

Costs of amortization of the equipment

Other extra costs of pfandomat functioning

Transportation costs of secondary raw materials

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Retailers Benefits

Financial: Customers flow increase Sales increase due to spontaneous purchases duringthe bonus coupon unitization

Brand goodwill :

Company`s value increase Transnational reputation Innovation-oriented company

PR and advertising: Socially responsible business image Effective information approach Increasing loyalty of local customers Free media campaign and social awareness of theproject

Legal:Following international environmental policy rules

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ECO - results

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Ukraine will reduce annual landfill load of solid waste by 12.1 thousands tones

PET wastereduction by 1.4thousands tones

Glass wastereduction by

10.1 thousandstones

Aluminum can wastereduction by 0.6thousands tones


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Environmental Safety

Creation of new working places and combat with shadoweconomy

Reduction of solid waste disposal

Reduction of the negative impact on the Ukrainianenvironment and public health

Increasing the volume of products produced fromsecondary raw materials.

Cleaner Ukrainian cities

Development of recycling industry infrastructure

Social Impact

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Having today

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May have tomorrow!

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Thank You!

SE Ukrecoresursy28

project ”installation of pfandomats in shopping networks of fast moving consumer goods”

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