What is PIR (Post-Industrial Recycled)?
PIR(Post-Industrial Recycled Material,Post-industrial recycled materials) refers to the amount ofLeftovers, defective products, waste materials, dead stock, etc., after being recycled and processed, it is put back into the production process to form a closed cycle. This mode does notOnly reduces waste, it can also reduce the cost of raw material procurement and improve resource utilization efficiency.Reduce carbon emissions during production.
Take the internal circulation process of PIR plastics as an example: After scrap recovery, scrap standard control, processing, crushing, purification, granulation and inspection, it becomes recycled plastic and is put into new product production processes.
Carbon Recycling Materials (CRAM)Integrate the upstream, midstream and downstream supply chains of the circular economy, focus on research and development: low-carbon circular plastics | aluminum alloys | copper materials, etc., andProviding a one-stop ESG sustainable carbon reduction solution (including PIR corporate internal circulation)The low-carbon recycling materials it provides can all be traced back to their complete sources, and provide complete and transparent production history and carbon footprint certification.
The 4 major benefits of PIR internal circulation to enterprises
In recent years, circular economy and carbon neutrality have become the core of global corporate transformation, and the internal circulation model of PIR (Post-Industrial Recycled Material) has rapidly emerged in response to international policies and market demands.
The following are the key benefits of PIR internal circulation to enterprises:
1. Comply with international carbon reduction policies and trends and reduce trade risks
- EU Carbon Border Adjustment Mechanism (CBAM)：The EU will pilot the Carbon Border Adjustment Mechanism (CBAM) from 2023, requiring importers to declare the carbon content of their products and to formally impose carbon tariffs in 2026.According to statistics from the European Environment Agency, enterprises can reduce carbon emissions from production by 15%-30% by introducing internal circulation, directly reducing carbon tax costs..
- Inflation Reduction Act (IRA): Provide green manufacturing subsidies to encourage companies to use recycled materials and low-carbon technologies. The PIR internal circulation is eligible for subsidies and can bring economic benefits to enterprises.
- China's 14th Five-Year Plan for Circular Economy Development: The goal is to achieve a renewable resource utilization rate of 60% by 2025, and the PIR internal cycle is one of the key strategies to achieve the goal.
The green supply chain has become a threshold for cross-border cooperation. The internal circulation of PIR can improve the ESG rating of enterprises and avoid being excluded from international orders.
2. Reduce raw material costs and improve resource efficiency
Global raw material prices fluctuate sharply. In 2024, aluminum prices will increase by 18% year-on-year, and plastic raw materials will increase by 12% year-on-year due to the influence of crude oil (data source: IMF). By recycling production waste (such as aluminum scraps and plastic pallets) into usable materials, procurement costs can be saved. For example, in a CRAM customer case, a bicycle manufacturer saved 20% in procurement costs and achieved a 95% in-plant waste recycling rate by recycling aluminum alloy scraps.
3. Reduce carbon footprint and improve ESG score
- According to data from the World Economic Forum, internal circulation in enterprises can reduce carbon emissions by up to 45%.
- The use of PIR materials can significantly reduce the carbon footprint in the product life cycle assessment (LCA), improve the company's ESG score, and attract green investment.
4. Create carbon rights assets and plan for Net Zero emissions
According to the World Economic Forum (WEF), the global carbon trading market size will exceed US$100 billion in 2030, indicating that carbon rights have become an important tool for companies to achieve net zero emissions (Net Zero). By reducing carbon emissions through internal circulation, enterprises can not only reduce environmental impact, but also convert emission reduction results into carbon rights assets and create additional profits.
CRAM’s PIR internal loop customer cases:
From waste to strategic resource:Carbon Recycling Materials (CRAM) has a comprehensive recycling supply chain system that integrates "recycling plants, concentration plants, disassembly plants, processing plants, purification plants, and recycling plants", with the goal of reducing waste and recycling, assisting companies in their low-carbon transformation and achieving a net-zero future.
CRAM has extensive experience in PIR internal recycling and low-carbon material technology, successfully helping customers transform various wastes into reusable resources, reduce carbon footprint, and create economic benefits.
The following are some of CRAM’s PIR customer cases:
Case 1: Recycling of bicycle frame aluminum scraps
- Client: A well-known bicycle manufacturer in Taiwan
- Solution: Recycle the aluminum alloy scraps from bicycle frames generated during the production process, re-melt them and use them in the manufacture of new frames.
- Results: Reduced raw material procurement costs by 30% and reduced carbon footprint by 25%.
Case 2: IC Tray Recycling
- Client: Taiwanese semiconductor manufacturer
- Solution: Crumble discarded IC Trays and re-make them into high-quality plastic pellets for use in new product manufacturing.
- Results: 500 tons of plastic waste reduced annually and ESG score improved by 15%.
Case 3: Internal circulation of plastic pallets in a factory
- Client: Taiwan electronics manufacturing factory
- Solution: Recycle damaged plastic pallets, crush them and modify them into durable pallets.
- Results: Reduced pallet procurement costs by 40% and reduced waste disposal costs by 50%.
Faced with the pressure of international carbon tariffs, green supply chains and Net Zero Transition,The PIR internal cycle has changed from a "bonus question" to a "survival question".
CRAM has built a complete traceable low-carbon circular supply chain covering recycling, material purification and regeneration processes., ensuring the provision of realTransparent and traceable enterprise PIR internal circulation service.
From waste to strategic resources, CRAM provides sustainable carbon reduction services throughout the entire process.
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