Green Advantage Sandvik proposes "new rules" for future business

As an important pillar of the national economy, it is also the key monitoring target of environmental protection agencies. Industrial enterprises always feel "grievances" in the face of "green" business rules. The high-hanging green Damocles sword makes it difficult for companies to measure environmental protection and profit. However, when we broaden our horizons, it is not difficult to find that the experience of foreign advanced enterprises reveals that the “green” competitive advantage is playing an important role in promoting a new round of development. "The 'green' strategy is the way of business management, fully in line with commercial principles." Sweden Sandvik Group has a unique "business".

Green business intelligence
Throughout the world, Nordic companies are undoubtedly a model of closeness to nature and a pioneer in the practice of human “green” business vision, in which heavy industry and large manufacturing companies have their own unique “green” business.

As a high-tech industrial group in the upstream of many high-energy-consuming industries, Sweden Sandvik High-Tech Industrial Group is committed to guiding itself and its partners to achieve “green advantages” at the source of production. “The importance of environmental thinking is increasing. The environmental protection measures adopted by companies are not only the routine work that the public expects, but also the direct advantage of whether they can obtain more advantages than the competitors.” The Sandvik Group explained their introduction. Proud of green wisdom.

Sandvik's global recycling service for the recycling of cemented carbide is a perfect example of the “green advantage” of environmental and economic factors. Sandvik offers a dedicated box for the collection and transportation of these recycled items directly to the customer's factory. When the recycling bin is full, the customer transfers the contents of the bin to a shipping container and sends it to Sandvik's recycling plant for remanufacturing using environmental safety technology. After 10 years of practical application, this recycling initiative has created a lot of economic and social benefits.

In terms of environmental protection, tungsten metal commonly used for HARD alloys is a non-renewable energy source. It is estimated that the total tungsten reserves in the world is 7 million tons. Based on the current consumption, it is only enough to maintain about 100 years of use. Moreover, there are also huge environmental pollution hazards in the mining and processing of tungsten. This cycle project is a good reflection of the high level of concern about the global consumption of non-renewable raw materials. For China, tungsten reserves are the world's leading and currently the largest supplier of primary tungsten ore products. Sandvik's recycling concept and practice are of great benefit to domestic environmental protection and the full use of resources.

Of course, from the perspective of economic interests, it is definitely a win-win deal. When customers implement recycling, they can get the corresponding compensation for the current market price of recycled materials from Sandvik. In fact, in recent years, with the rise in prices, the second-hand raw materials market has expanded rapidly, and the price of tungsten metal has increased threefold. For suppliers like Sandvik, because second-hand raw materials have become valuable commodities, recycling is undoubtedly greatly reducing the cost of production. The greater the proportion of recycling, the more objective the economic value of creation.

To achieve a green business with a win-win environment and profit, it is indispensable to have leading technology and reliable means of protection. The initial investment is inevitable. Sandvik's recycling concept has been certified by all levels of the international environmental management standard ISO14001 for 10 years. Not only that, its 130 production and distribution departments have passed ISO14001 certification before the end of 2007, accounting for the total number of group departments. 87%, it is predicted that all departments will pass this environmental management certification in 2008; in order to better do "green" business, Sandvik has a recycling project in the factories of many customers around the world. Experts, in order to guide the recycling of used blades, help to manage the wear and tear of related equipment, monitor the different wear and replacement frequency of each machine through advanced control programs, save a lot of money for partners, and win their trust. And loyalty.

Thanks to the annual R&D investment guarantee, Sandvik has succeeded in improving its productivity and profitability while helping customers improve their environmental performance. Typically, refineries use standard stainless steel in heat exchangers. Due to the corrosive environment around it, the pipes need to be replaced every year, and the cost per replacement is about 2 million Swedish kronor, and the indirect losses caused by the shutdown are not counted. After detailed demonstration of the application environment, Sandvik's zirconium metal tubes developed for customers have a service life of up to 20 years and can save customers up to 30 million Swedish kronor.

Input has become the best catalyst for output. All the efforts are made of rich new technology, new crafts, and new experiences, but it does not stop there. It is borrowed from the famous economist Fan Gang. "This actually determines the industry status of the company in the next few decades; The image of the company in the minds of customers; determines the new profit growth point of the company."

The green "revolution" of Chinese companies

China's emphasis on environmental protection has reached a new height in the 30 years of reform and development. On the one hand, the national “Eleventh Five-Year Plan” proposes energy conservation and emission reduction targets with a 20% reduction in GDP energy consumption. The government has adopted a green GDP accounting that represents the net positive effect of national economic growth, making the environmental protection policy implemented from the top down. On the other hand, the people's environmental awareness is constantly improving, and the garbage classification, green shopping bags, and the spirit of the green Olympics are deeply rooted in the hearts of the people, making environmental awareness affect the country's policy formulation from the bottom up.

At the same time, as the largest part of China's GDP, the profit pressure of industrial enterprises is also growing. On July 17, the economic data of the first half of the year released by the National Bureau of Statistics showed that the year-on-year growth rate of industrial value added on the national scale fell by 2.2 percentage points over the same period of the previous year. The slowdown in industrial growth was mainly due to the increase in the cost of industrial raw materials. In the first half of the year, the purchase price of raw materials and energy increased by 11.1% year-on-year, an increase of 7.3 percentage points over the same period of the previous year. Obviously, China's manufacturing industry is facing multiple pressures in this green "revolution."

Development based on a high-consumption, extensive growth model has gradually entered a stalemate due to the loss of cost advantage. Perhaps the experience from Sweden can bring some lessons to Chinese manufacturing. The recycling of Sandvik's raw materials fully demonstrates the green business's achievements in cost control, and improving environmental performance means not only “saving 30 million Swedish kronor”, ​​but also helping customers to establish a good green image. The key is: First, domestic enterprises should reverse the "green" means high cost, high investment and low return concept, actively learn from the world's advanced green technology and business ideas, turn green into their own advantages, and read their own green business. Second, the "green" into a customer's selling point to help customers more successful. With the green concept "open source and reduce expenditure, it is not necessarily a new impetus for the future development of the company?

About Sandvik
Sandvik is the world's leading high-tech industrial group with a long history dating back to 1862. After nearly 150 years of development, the Group has become a global leader in manufacturing processes. With a discreet pioneering attitude and high value-added products and services, the Sandvik Group's business has successfully expanded to more than 130 countries worldwide. By 2007, Sandvik Group's revenue had climbed to SEK 86 billion (101.6 billion RMB) and has more than 47,000 employees worldwide.

Sandvik is a world leader in cutting tools, mining engineering machinery and materials technology. Advanced products include metal cutting tools, rock excavators and large machinery, stainless materials, special alloys, metal and ceramic resistor materials and transmission systems. product. Products and services in the automotive, aerospace, mining and construction industries, chemicals, oil and gas, power, pulp and paper, household goods, electronics, medical technology and the medical industry.

Sandvik entered the Chinese market in 1985. The current market in Greater China includes mainland China, Hong Kong and Taiwan. In 2007, Sandvik in China sold 3.8 billion yuan, with more than 1,400 employees, 25 offices and 7 production bases.

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