KangLi Strives to Save Water, Reduce Carbon Footprint
The Hong Kong-listed steel products company advances toward its goal of achieving environmentally-friendly production.
CapitalWatch Staff
CapitalWatch Staff
Oct. 21, 2021 17:48
KangLi Strives to Save Water, Reduce Carbon Footprint

In recent years, KangLi International Holdings Ltd. (HKЕХ: 6890), a China-based midstream galvanized steel products manufacturer, has invested considerably in water saving and energy conservation.

While high energy and water consumption is unavoidable for the current steel products manufacturers in production processes, the group insisted on strengthening hardware construction and software updates. As a result, KangLi was awarded one of the Water Saving Model Enterprises in Jiangsu province. In addition, the group was one of the recipients of Changzhou Special Fund for Energy Conservation and Circular Economy Development in 2021.

The fund will be used to improve energy saving technical transformation of air knives for the galvanizing line.

Optimizing Water-saving Systems

The company strives to optimize water-saving systems and raise employee's water-saving awareness. Internally, KangLi has established a water-saving assessment and reward system, giving incentives to employees and departments that follow the new system.

Moreover, the company has thoroughly investigated and eliminated the serious water leakage of the pipe network by replacing the buried pipe network with PE pipe. KangLi also installed meters at each water consumption point. The company analyzes water consumption and tries to improve the utilization rate of water resources.

Reducing Wastewater

The company has improved three processes to make them more efficient and water-saving.

First, adding an acid mist condenser into the acid distribution together with the absorbed water of the primary spray tower can save 12,000 tons of water, 600 tons of hydrochloric acid, and more than 100,000 yuan of sewage treatment cost every year. Second, using the heat of condensed water and introducing the condensed water to the circulating tank saves 2,000 tons of steam consumption and 5,000 tons of desalted water every year, and 5,000 tons of sewage treatment and discharge are reduced (the discharge cost of oily wastewater treatment is 80 yuan per ton). Third, strictly controlling the concentration multiple of circulating cooling water and improve the recycling utilization rate, which is up to 99%.

As a result, the water-saving effect has been remarkable. The company's wastewater discharge was 125,000 tons in 2019, shrank to only 96,000 tons in 2020, and to 48,400 tons as of September 2021.

Reducing Carbon Footprint

In response to China's policy of hitting peak emissions and attaining carbon neutrality by targeted timelines, the company is in the process of introducing an energy management system. This system will utilize 5G technology for real-time management of energy consumption at different production units for more precise cost control as well as energy saving and emission reduction.

As electricity consumption and the operations of fixed machines and equipment were the major sources of the group's carbon emissions, KangLi continues to strengthen the energy-saving measures in its daily operations. The company encourages staff to turn off idle appliances and adopt the use of energy-efficient appliances. The use of natural lighting in both office and factory facilities is also encouraged. Apart from these measures, the group conducts regular checks and maintenance of the fixed machines and equipment, so as to ensure energy efficiency and minimize the production of greenhouse gases.

Further, KangLi will continue investing in environmental protection and pledges to become an environmentally-friendly and sustainable enterprise. The company aims to fully comply and help to achieve Beijing's pivotal commitment of striving to achieve carbon peak by 2030 and carbon neutrality by 2060.

KangLi was listed on the Main Board of the Stock Exchange of Hong Kong on November 19, 2018. Through its subsidiaries, KangLi makes and markets unpainted galvanized steel products and cold rolled steel products to midstream steel product processors for processing refrigerators, washing machines, and ovens. The company distributes its cold rolled steel products under the brand name of Jiangnan in both domestic and overseas markets.

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Topics :KangLi, Stocks, China, Steel
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