Precision Engineering Plastics

Savings at a glance

• Total loans value: £68,685
• Total annual energy savings: £26,414
• Total annual CO2 savings: 223.65 tonnes
• Overall average payback period: 3.5 years per loan

The business case

Founded in 1985, Precision Engineering Plastics (PEP) started life as a 2,000.sq.ft unit with a couple of machines for producing injection-moulded plastic components. Nearly 25 years later, the company employs 45 people in its 24,000.sq.ft factory in North London, which runs 24 hours a day, five days a week, and has an annual turnover of £4 million.

Initially focusing mainly on the automotive and engineering sectors, PEP’s customer base now includes companies within the electrical and medical sectors, as well as the Ministry of Defence. The machines provide batches ranging from 50 samples to many millions.

Directors Vince Marino and Padraic Doheny, had worked for the company for 14 years before successfully executing a management buy-out in 2005. Following this, the two partners set-out to ‘future-proof’ the business.

In terms of energy efficiency, the business faces two common challenges: it needs machines that are modern enough to compete in their chosen markets, and sufficient cooling equipment to keep those machines running through relentless production cycles.

When the company’s equipment supplier recommended the Carbon Trust interest-free Energy Efficiency Loans scheme, it was the beginning of a long-term partnership to modernise PEP.

Vince Marino said, “In order to succeed, we need to keep a constant eye on how we can expand into new markets by investing in faster, more efficient, more up-to-date machinery. The Carbon Trust’s interest-free loan scheme was a perfect way to keep PEP at the forefront of our market in terms of technology, whilst enabling us to steadily reduce our energy costs over time.”

The technology

PEP initially applied for a £10,900 interest-free Energy Efficiency Loan from the Carbon Trust to fit energy optimisers to 19 motors used on injection moulding machines and chillers around the site. This change went on to provide annual energy savings of £3,114.

In February 2008, in line with its continued growth, the company approached the Carbon Trust again, this time for help to replace two injection-moulding machines with newer models. We provided a second interest-free loan, of £47,285 to help fund the purchase of the new machines.

Besides being quieter and more energy efficient, the replacements are also quicker – reducing cycle times and running costs. This has reduced PEP’s annual energy bill by £18,700.

At the end of 2008, the company used a third Carbon Trust loan – this time £10,500 – to buy a power factor correction unit and regulate the amount of power consumed by the plastic moulding machines. This change should deliver annual energy savings of £4,600.

The company is now considering relocating its factory, at which point it will look at further efficiency measures such as lighting and insulation.