Efficient Chemical Management in Global Paint Industry: A Case Study in Sri Lanka

Abstract

Traditionally, chemicals are sold to customers, who become owners of the substances and they will be responsible for its remaining whole life cycle. Here the chemical suppliers have only an economic interest at increasing the volume of chemicals sold, which is finally related to negative releases to environment. Compared to this approach of constant increase in sales volume of chemicals, the concept of Chemical Leasing (ChL)-originated by United Nations Industrial Development Organization (UNIDO)—aims at a shift towards a much more service and value-added approach. In this new ChL business model customer pays only for the benefits obtained from chemicals, but not for the quantity of substance, hence economic success of supplier is not linked with product turnover anymore. So chemical consumption becomes a cost rather than a revenue factor for chemicals supplier, where supplier always compelled to reduce the amount consumed, which intern reduces environmental pollution. During last few years, ChL business models have been successfully applied by UNIDO in several industrial sectors worldwide such as cleaning, coating, greasing and coloring. Results obtained have clearly shown that implementation of ChL has significantly reduced the harmful emissions to environment where chemical manufacture works closely with user to meet all three sustainability dimensions of Economical, Social and Environmental. In year 2012 a study was conducted to apply the chemical leasing concept in building painting sector in Sri Lanka where the paint manufactures produced about 56,876 kl of paints annually. Here the responsibility of paint producer ends with selling of these chemicals to user, where user is totally responsible for its application and remaining whole life cycle. In this existing system observed various types of chemical wastes and complications at user’s end, such as—spills during transfers to mixing containers, remains in containers, escapes to surrounding during application processes, inconsistent quality of mixed paints, high absorption of paints into walls, insufficient technical know-how on painting surface preparation, insufficient technical know-how on paint handling equipment, coagulation of excess paints in containers, need of more water, electricity and labor on equipment cleaning, unsatisfied labor attitudes on difficult working conditions they faced, release of many empty containers to surrounding by creating severe environmental and health hazard—are some of them. Therefore to break this vicious circle I designed and consulted the world first “Building Painting Project on Chemical Leasing Concept”—between Chemical Supplier—Madushika paints Industries Private Ltd and Chemical User—Sri Lanka Broadcasting. Corporation. In this new ChL methodology I arranged site visits for paint supplier to paint users sites—in order to collect technical details of the surfaces to be painted and to decide on the chemicals to be supplied. Discussions were held between paint user and paint supplier on preparation of walls, labor utilization and suitable equipment to optimize the paint usage. A new basis of service oriented payment calculated on area painted is developed to pay by chemical user to chemical supplier which was clear to check at any time. Further a new Spherical Container was designed to handle mixed paint in-between supplier and user—in order to prevent environment pollution by thrown out empty containers to surrounding. The results of this study shows that about 12 % of paint consumption, 20 % of waste generation, 15 % of water consumption, 20 % of labor involvement and 5 % of energy consumption has reduced by application of ChL concept. Finally it has brought economic advantages for both parties involved thus providing concrete solutions in sustainability of efficient chemicals management in global paint industry through Chemical Leasing Concept.