Innovative solutions for plastic waste

Equipment upgrade enhances plastic recycling operations, making them more efficient and environmentally friendly, simultaneously boosting production capacity and the quality of recycled plastic products.

Mongolia faces significant challenges with plastic waste, ranking among the top ten countries globally for plastic waste production per capita, with a recycling rate of less than 10%. This situation presents both an environmental crisis and an opportunity for innovation.

Since 2004, Ter Ikh Nuur LLC has pioneered recycling, transforming PVC and PPR plastics into new plastic pipes. However, despite its commitment to sustainability, the company struggled with outdated equipment that limited productivity and high energy consumption, significantly contributing to greenhouse gas emissions.

Recognizing the need for modernization, Ter Ikh Nuur LLC decided to invest in new recycling technology. This investment aimed to increase productivity and reduce energy consumption at the same time. With support from the GEFF team, the company selected an upgraded plastic recycling line, designed to deliver high-quality output while minimising energy usage.

The investment, financed through a US$ 156,635 GEFF loan from Khan Bank, allowed the company to boost its production capacity and quality of its finished products. This upgrade also achieved a significant energy savings of 751 kWh annually.

The environmental benefits of the modernization are substantial, resulting in an annual reduction of 342.6 tonnes of CO₂ emissions. This advancement enhances Ter Ikh Nuur LLC’s operational efficiency and contributes positively to Mongolia’s environmental sustainability and the effective utilization of waste.

The Green Economy Financing Facility (GEFF) in Mongolia was developed by the European Bank for Reconstruction and Development (EBRD) and supported by the Green Climate Fund (GCF) and Japan, whose assistance is integral to advancing sustainability projects across the country.