Project description

Title: Promotion of Environmentally Friendly Saa Paper
Commissioned by: Bundesministerium für wirtschaftliche Zusammenarbeit und Entwicklung (BMZ) (Federal Ministry for Economic Cooperation and Development)
Country: Thailand
Lead executing agency: Department of Environmental Quality Promotion (DEQP)
Overall term: October 2005 to September 2007

Context

Saa paper is made from the bark of mulberry trees. It is used for products such as writing paper, decorative products, handicrafts and innovative products (medical auxiliary, surgery gowns). The total annual export revenue is approximately Thai Baht 2,500 million (Euro 52 million) with a steady growth of 10-20 percent per year.

The saa paper industry is located in Northern Thailand. It contributes to the tourism industry as a producer of local souvenirs. It also creates locally important income for 20,000 bark collectors around the Thai–Lao border and for disadvantaged groups such as women and older people involved in craft making. It generates employment for a total of about 30,000 people.

The saa paper industry is dominated by a small number of industrial enterprises, responsible for about 70 percent of the total Thai production and export of saa paper. Cottage industries contribute 10 percent of total exports. With a relatively stagnant price for saa paper since 2001, these cottage industries have been put under strong pressure. They are rapidly falling behind with regard to product design, marketing and their ability to catch up with the bigger producers. Hence, there is a danger that they will be forced out of business, endangering the livelihood of thousands of people, mostly from poor families.

At the same time the smaller businesses are responsible for most of the environmental problems in the industry. In the paper producing villages, chemicals are used to bleach the paper and the wastewater runs freely into surface and ground waters, which harms the environment and causes health problems among paper workers. Only a few medium-sized factories can afford to have wastewater treatment plants or to recycle their wastewater in the production process. The small and home-based producers cannot afford such investments.

Additionally, the environmental factors of handmade paper production are becoming increasingly important in customers’ purchasing decisions and affect the product image.

Objective

The goal of the project is to improve the competitiveness of small and medium scale enterprises in the saa paper industry by introducing eco-efficiency.

Approach

The focus is on facilitating SMEs’ access to the services related to productivity improvement through eco-efficiency, process innovation, environmental sustainability and better marketing.
The measures will range from creating awareness about environmentally sustainable production process standards, the introduction of new technology applications (such as drying technology), and the creation of environmental/eco-friendly products/labels. The project also focuses on the usage of chemical/natural colours. The dyes currently used by the small family enterprises are of low quality, harmful and often banned in other countries. The project works on improving the knowledge of and the availability of the dyes to the cottage industries paper producers.

To enhance the competitiveness of the industry, the implementation of environment-related activities covers six important areas:

• colours, dyes and water
• raw materials
• production standards
• information and coordination management
• training and advisory services
• improving the marketing for and the awareness of environmentally sustainable production.

Results achieved so far

Leading enterprises have been made familiar with environmental management accounting, in order to reduce costs and at the same time decrease pollution and occupational health risks.
They participated in the training programme of PREMA (Profitable Environmental Management), in order to stimulate other enterprises to adhere to the standards of eco-efficient management.
Participation in the training measures and workshops have also served as a step towards networking, in order to develop facilities for joint use (such as a colour bank and standards board) and joint marketing (e.g. attendance at trade fairs).
With a participatory, community-based approach, areas for project measures have been determined, for instance the development of facilities such as a colour bank, a raw materials network, a standard boards and a promotion centre. New eco-efficient technologies (a pressurised boiler, wastewater treatment and drying devices) are being introduced.

This project is part of the

• Thai-German Programme for Enterprise Competitiveness: Eco-Efficiency Component