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Multiple savings in the textile industry from the replacement of production machinery

Investor
Moda SA, a clothing manufacturer
Location
Arad, Romania
Investment
Modernisation of the production process
Investment Size
€293,690
Financial results
Paybackk period of 6 years
Energy savings
990 MWh per year (35%)
CO2 savings
283 tonnes of CO2 emissions per year
Impact
Reduced energy, HR and operation and maintenance costs

Moda SA is a leading Romanian producer of clothes for women, and has been operating in Arad since 1959. It works under the Lohn system whereby well-known international companies supply fabrics, patterns and other materials for the production of the final product, as well as producing garments under its own label for the Romanian market.

To stay competitive and minimise production costs, including energy costs, the company decided to invest in modernising its production facilities, and addressed EEFF for advisory support and affordable financing for the project.

The EEFF team performed an energy audit of the production facilities and defined the potential energy saving measures and their profitability.

The suggested project comprised replacement of ventilation and electrical systems, cutting machines, a compressor and vacuum pump, and 0modernisation of steam and hot water boilers.

The investment of €293,690 allowed the company to reduce its energy consumption by a substantial 990 MWh per year (35%). The investment will be repaid from energy savings, HR, and operations and maintenance savings in just six years. The company could feel the benefits of these measures immediately through decreased energy bills and improved operations. In addition, the company decreased its CO2 emissions by 283 tonnes per year, making a valuable contribution to the mitigation of the negative effects of human activities on the climate.

This project demonstrates that replacement of production equipment can lead to energy savings, and other benefits, which translate into increased margins and profits.

The EEFF supports the implementation of energy efficiency and renewable energy projects by the private sector. Together, the private, residential and public sectors can make a change in energy consumption patterns and environmental protection.

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