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NUFARM LYTTON Sustainable production Nufarm Australia Ltd - Lytton 21st February 2012 Michael Munro [email protected] Global Operations Belvedere, UK Botlek, Netherlands Cologne, Germany Gaillon, France Paris, France Barcelona, Spain Ravenna, Italy Lisbon, Portugal Linz, Austria Warsaw, Poland*** Bucharest, Romania Calgary Chicago Raleigh Tokyo Shanghai Mumbai** Kuala Lumpur Cali Fortaleza São Paulo Santiago ** Excel 14% owned *** F&N Agro 50% JV Jakarta/Merak Welshpool Kwinana Lytton Dubbo Buenos Aires Adelaide Laverton Manufacturing in 14 countries; marketing operations in 20; product sales in more than 100 Auckland Nufarm Lytton Site Source: www.nearmap.com Accessed: 17/02/2012 Site Overview Nufarm Australia Ltd acquired Chempak and began operations at the Lytton site in 1987 Operates as a dedicated insecticide & fungicide formulation facility Classified and operated as a Major Hazard Facility since 2003. Includes state distribution warehouse. 4.2 Ha site 38 permanent staff with up to 20 temp staff to support production as required. Classical Waste Management Focused on what is thrown away. Focused on economic impacts. Direct disposal costs Raw material costs that went into generating the waste (waste isn’t created from nothing) Lost plant capacity produce / process the waste Storage costs of waste Significant resources to manage disposal and government legislative requirements. Waste Minimisation Staff engagement – talk about waste Waste Source 2011 Monitor what’s generating waste Maintenance/ Workshop 2% and establish priorities via pareto. Segregate at source to allow optimal disposal cost for each class of waste. Lab (QC) 5% OTHER (unknown) 4% Liquid Formulation 28% CR Plant 9% SC Plant 13% Scrubber Blowdown 14% Liquid Filling Line 26% Case Study – Washings Waste Nufarm products are selective pesticides and have strict cross contamination limits to prevent “off-target” impact. 50mg/L to 1000mg/L depending on product to product changeover 50 different products into 151 different end item SKUs. Historically vessels and pipework washed to remove last product and sent to waste for disposal. Limited waste disposal options due to toxicity => high cost Emphasis on JIT production => high number of change-overs` Case Study – Washings Waste Aggregate production into monthly campaigns were practicable Note: Raw materials already purchased based on monthly demand therefore negligible impact on inventory value. Significantly cut down on change overs and waste. Adopt first flush capture. First equipment wash in product solvent => can be reused. First flush washings logged into quarantine management system. On approval by technical department, ERP system allocates washings to next production work order. Liquid waste now mainly contaminated solvents rather than heavily loaded with pesticide => cost down from $2/L to $1/L. Case Study – Washings Waste Next phase (July 2012) is to improve equipment design to allow product segregation based on solvent type. Trials of diaphragm pumps cut retained product by 80% versus old centrifugal pumps Benefits Minimises solvent to solvent clean-out waste (50% reduction in waste from area – approx 25% reduction of site’s liquid waste) Less draining => less operator exposure to chemicals Engineering controlled procedure minimises clean-out quality variability enabling fast changeovers (recovers loss in direct throughput) $300k capital expenditure => 14 month payback Sustainable Manufacturing Def: Meeting the needs of the present without compromising the ability of future generations to meet their own needs. Source: Wikipedia Three pillars to sustainable growth; 1. Meet business economic expectations. 2. Meet social expectations of staff and wider community. 3. Low environmental footprint Modern Waste Identification 8 Forms of Waste in Manufacturing DEFECTS; Making defects, checking for defects, fixing defects OVER PRODUCTION; Items made before customer requirement WAITING; work waiting to be processed, resources waiting for work NOT USING PEOPLE’S TALENT; Underutilise skills, knowledge and motivation of staff TRANSPORT; Moving things back and forth INVENTORY; Storing, counting, obsolescence, damage, congestion MOTION; People moving any more than required EXCESSIVE PROCESSING; Wrong tool for job, standard too high, customers don’t value features Staff Engagement Identify opportunities for improvement Hierarchy of Controls Similar to risk management Substitute the word ‘avoid’ with ‘eliminate’ Highlight successes via Intranet site Monthly newsletter Source: www.derm.qld.gov.au Accessed: 17/02/2012 Segregate Waste – Hierarchy of controls Office paper, cardboard, stretchwrap & PET waste recycled. Good condition pallets sold or recycled. Bulkbags next challenge FY11 Waste TONNAGE - Lytton COMINGLE 0.0% RECYCLE 9.8% HAZ LIQUID/SOLIDS 44.5% GENERAL WASTE 35.2% INDUSTRIAL SERVICES 0.0% LIQUID 10.5% Case Study; Raw Material Packaging Raw material historically supplied in 200L mausers now supplied in 1000L Schütz IBCs. Lower cost of transport 1000L per pallet in comparison to 800L in drums Nufarm purchase Schütz IBCs for FG use Launder RM IBCs at saving of $200ea Surplus IBCs are returned to Schütz for free Global E-Ticket program Frames reused or recycled as scrap Bladders chipped and recycled Case Study; Product Concentration Original Glyphosate product = 360g/L Limited by salt solubility Product R&D has enabled improved formulations of higher concentrations. Now up to 570g/L in water based product. Process R&D has enabled new forms of product to gain even higher concentrations. Solid granules up to 900g/kg. Benefits; Improved or maintained premiums for high strength formulations (on a per kg active basis) Lower cost of packaging per kg of active. Lower cost of transport and storage Farmer can carry more kg active into field before return to restock Case Study; QuikPour ™ Nufarm introduces world-first in packaging technology for Agchem products. QuikPour packaging is "glug free" which provide significant OH&S benefits to the farmer. (less splash back) Faster, more precise pouring approx 50% improvement in decant time Case Study; QuikPour ™ 82% reduction in plastics packaging per L 35% reduction in the transportation and storage of raw materials Decrease in FG freight requirements due to increased volume per pallet Outer carton manufactured from recycled paper All materials recyclable via drummuster program PACIA Sustainability Framework Nufarm signed up to PACIA’s Sustainability Framework carter in 2009. Qld Sustainable Energy Innovation Fund Projects include; Reduce energy usage and are more energy efficent than existing options Substitute biomass or waste for fossil fuels Reduce greenhouse gas and other pollution emissions resulting from use of fossil fuels Enable grey water, rainwater, waste water, or sea water to be utilised to reduce consumption of potable water Subsitute recycled or low grade water for potable water in industrial processes Reduce energy involved in producing, treating and recycling of water. Grants of up to 80% of project cost (caped at $200,000) www.derm.qld.gov.au/qseif DERM (reThink Business Waste rebates available) www.derm.qld.gov.au/waste Other Links DERM Sustainability Branch – EcoBiz Public Seminars Networking sessions linking businesses http://www.derm.qld.gov.au/environmental_management/sustainability/index.html AusIndustry Clean Technology Investment Program http://www.ausindustry.gov.au/CleanTech/InvestmentProgram/Pages/InvestmentProgram.aspx Qld Premier’s Sustainability Award Program http://www.derm.qld.gov.au/premiersawards/index.html Any questions ? Safety Considerations for Site Tour Plant Areas Covered arms and legs Helmet and glasses High Visibility Vest Enclosed footwear Mobile Phones , Blackberries and Cameras are not to be taken into production area Must be accompanied at all times by Nufarm personnel Be mind full of personal hygiene – toxic chemicals in use. Be aware of forklift activity at all time. Pedestrians to give way Smoking only in designated areas In case of emergency, please follow direction from site personnel