Case Study

Merge of food production lines for higher efficiency, Mongolia

This client is one of the major food production conglomerates in Mongolia. Established in 2003, it currently owns six factories, has the highest market share in the domestic food industry, employs 800 people and is a large contributor to the state budget.

To rationalise the energy and resource use while increasing the production, the company identified an opportunity to replace the existing aseptic processing line with a new and energy efficient line and to amalgamate three factories into one.
The company addressed MonSEFF for financing of this investment.
The MonSEFF team supported the company with analysis of the proposed technologies, in particular, the potential of energy savings and financial-technical parameters.
It was observed, that many of the energy consuming activities of the three factories were similar and, in fact, used a lot of similar equipment. Relocating existing machinery from three lines in a new single plant that shares common utility services and process equipment allows avoiding the redundancy of machines, reducing the installed power and energy consumption, optimizing the production process while increasing the production.
The $1.2 million investment allowed the company to decrease its electricity consumption by 54 per cent and steam consumption by 53 per cent. Considering the energy bill of the three plants has earlier reached dozens of thousands of dollars per year, the cost savings from reduced energy consumption will be substantial, especially in combination with the 44 per cent increase in production capacity.
This project demonstrates well that investments in energy efficiency usually come with other benefits, such as production optimization, production increase, reduction of other costs, improvement of working conditions. Therefore, it is worth checking the energy saving potential of such investment measures, in order to verify if they can bring additional cash-flow from reduced energy consumption.
18 Jan 2016