Name of company: Plastigray, SA
Sector: Plastics Manufacture
Number of employees: 110
Country: France

Abstract | Country Overview | Sector Overview | Company Description
Driving Forces | Implementation | Partnerships | Results | The Future

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Plastigray is a 110-employee plastic manufacturer. The sector is presently in a major growth phase. Environmental issues are seen as an important factor for the future development of the sector. Plastigray began to implement environmental management as a result of management commitment to environmental and saftey issues, legislative developments and increasing public awareness of the environmental impact of plastic products. Furthermore, the company believed that environmental management could yield significant financial benefits.

Initially an environmental self-diagnosis was conducted, allowing the company to make an estimation of its environmental performance, and enabling it to develop an action plan. Implementation focused on waste and energy management, and communication and training. The costs of waste management have been reduced by 20 per cent, and Plastigray is presently one of the leading companies in its sector in the field of environmental management. Employee participation has been a very important element in the company's environmental management strategy. Ultimately Plastigray hopes that its employees will become the main driving force behind future developments.

Bordering on six countries, the Mediterranean Sea and the Atlantic Ocean, France is a crossroads in the European Union. Industrial activity in France is diverse, and international trade is an important contributor to the economy. A highly developed transport and communication system has helped France to develop its foreign markets and to become one of the European Union's most powerful economies. High technology, for example in the aeronautics and telecommunications sectors, is one of France's most important exports. The agro-food industry is also an important sector of the economy, in terms of both domestic and international trade. With over 70 per cent of the country's electricity provided by nuclear power and a high export level of nuclear energy, France is one of the world's major industrial nuclear energy producers, rendering environmental issues of particular relevance. The implementation of environmental policies on a national level has been hindered by the high level of centralisation of the country's administrative system around the capital city, Paris. While there is also a large number of government environmental organisations on the regional level, these organisations have many different functions and have contributed to the complexity of the administrative structures. As a result, the organisation and introduction of concrete environmental measures on the local level has proven to be difficult.

Plastics manufacturing is a sector with enormous potential, and which is currently in a major growth phase. It has been estimated that up to the year 2015 the sector will grow at an annual rate of approximately seven per cent. Sectoral growth will be generated by the development of existing materials and markets and by the creation of new plastic products. Given this high growth rate and the evolution of environmental legislation and growing awareness of the general public, the sector has realised that environmental issues need to be taken into account in the development of future strategies. Furthermore, given the nature of their products, plastic manufacturers generally have a high level of awareness of environmental issues; firstly, because the majority must obtain a production permit (depending on tonnage), and, secondly, because their products generally have a significant reuse potential. Over the last few years the plastic manufacturing sector's national federation has become active in the area of environmental protection, and has created a national commission to deal specifically with environmental issues.

Plastigray was founded in 1986. Operations began with three employees and three moulding machines. Plastigray currently has 110 employees and 14 moulding machines. Turnover is Ffr 72 million per year. Plastigray is located in the town of Gray, in the Haute-Saône department in close proximity to its customers. It is situated mid-supply chain and supplies mainly to large companies, for example, Peugeot Motorcycles. Plastigray specialises in the development, manufacture and assembly of plastic material sub-components. These products are then assembled into finished products for either industrial or household use by Plastigray's industrial customers.

Environmental management at Plastigray began with commitment from top management. Plastigray's director was particularly concerned with environmental quality, working conditions and the need to respect health and safety legislation. As a result, Plastigray's premises were designed with consideration of environmental factors.

Plastigray was also aware that environmental management could provide financial benefits in the following areas in particular:

• treatment of industrial waste;
• treatment of special waste;
• recycling of plastic waste;
• reuse of plastic packaging;
• energy management;
• reduction of waste at source.

Management and employee motivation was an important element in the development of environmental management in Plastigray. The company aimed to make the environment an integral part of its corporate culture. In order to do so, it wished to create a link between environmental activity in the enterprise and in the day-to-day life of employees. In addition to environmental issues, quality and safety issues were identified as the key elements of company strategy.

Plastigray's first step was to conduct a self-diagnosis. This diagnosis was conducted on the basis of a method developed specifically for SMEs by the environmental management association Orée-INEM France. A self-diagnosis guide was also provided by Orée-INEM France. According to levels defined in the self-diagnosis guide, the company was able to situate itself in terms of its level of environmental performance, and to develop a global action plan for all areas of operation.

 Fig. 1: Result of the Plastigray Self-diagnosis

The measures which were then implemented are described below.

Communication strategy

• nomination of an environmental officer at management level and at departmental level;
  
  
• development of a company environmental charter signed by top management and displayed in all departments of the company;
  
  
• introduction of a noticeboard system informing employees about the latest progress made in relation to the company's environmental action plan, and about the monthly results of the implementation of environmental measures;
  
  
• development of an internal and external communication system, essential for maintaining a high level of employee motivation.

Waste management

An industrial waste diagnosis was conducted at Plastigray in co-operation with the national Agency for the Environment and for Energy Management (l'A.D.E.M.E.) and the Haute-Saône environmental resource centre. Following the diagnosis, an action plan was developed. The aim of this plan was to completely eliminate external waste disposal. The action plan covers the following areas:

• identification of waste streams (wood, paper, plastic, cardboard);
  
  
• review of services offered by waste management companies in the region;
  
  
• organisation of internal waste collection and sorting;
  
  
• training of employees regarding the waste collection system;
  
  
• purchase of a press for compacting plastics;
  
  
• identification of assembly points for waste collection;
  
  
• report on the tonnage of waste managed and recovered, and display of the resulting financial benefits to company employees.

A section on waste management has now been integrated into the training programme developed for 1996-1998.

Energy management

The energy management action plan developed by Plastigray covered the following areas:

• realisation of an energy diagnosis;
• development of a corresponding action plan;
• information programme for employees;
• development of a centralised energy management system.

Plastigray worked with the following organisations in implementing environmental management:

• Agency for the Environment and for Energy Management (l'A.D.E.M.E.)
• Regional Agency for Industry and Environmental Research (la D.R.I.R.E.)
• Haute-Saône environmental resource centre
• Orée

Through its co-operation with these organisations, Plastigray has a constant stream of information on the latest technological and legislative developments relevant to its activities. In addition, the company is able to access expert advice in relation to the specific environmental measures which it has implemented or plans to implement.

The main results of implementation of environmental management in Plastigray are as follows:

• the high level of employee motivation resulting from involvement in environmental activities has had a positive effect on overall activities in the company;
  
  
• the management and operational costs associated with waste have been reduced by 20 per cent, despite the fact that the level of activity has doubled since implementation began;
  
  
• the company is now ahead of most companies in its sector in the field of environmental management;
  
  
• the development of an external and internal communication system has allowed Plastigray to promote its environmental activities not only to its employees and customers but also to its local community;
  
  
• the company recycles or reuses of 95 per cent of normal waste;
  
  
• the company reduced water consumption by 150m3 in one year.
  

Plastigray aims to implement a system of continuous improvement by 1997, moving from level I to level V of the levels identified in the Orée self-diagnosis guide (see Fig. 1).

Plastigray will continue to integrate environmental issues into its overall management strategy. In this process it hopes to develop greater and more active employee involvement. Ultimately the employees should become the driving force behind environmental management, as opposed to simply following directions given by management.

The company hopes to achieve ISO 14001 certification in 1997.

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This case study was originally published in the INEM Casebook, Case Studies in Environmental Management in Small and Medium-Sized Enterprises, the publication of which was made possible through the financial support of the German Agency for Technical Cooperation (GTZ).

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