Manufacturing case study CTS093
Precision Engineering Plastics
Energy Efficiency Loan
scheme fits the mould for PEP
By using three Energy
Efficiency Loans from the
Carbon Trust to upgrade
equipment, Precision
Engineering Plastics has
stayed fighting fit to face
the recession.
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 59 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 we need to keep a constant eye on how we
the Ministry of Defence. The machines
provide batches ranging from 50 samples in faster, more efficient, more up-to-date
to many millions.
Directors Vince Marino and Padraic Doheny,
had worked for the company for 19 years
before successfully executing a
management buy-out in 2005. Following
this, the two partners set-out to ‘future-
proof’ the business.
Loans
In terms of energy efficiency, the business
Savings at a glance
faces two common challenges: it needs
machines that are modern enough to • Total loans value: £68,685
compete in their chosen markets, and
• Total annual energy savings: £26,414
sufficient cooling equipment to keep those
machines running through relentless
• Total annual CO2 savings:
223.65 tonnes
production cycles.
• Overall average payback period:
When the company’s equipment supplier
recommended the Carbon Trust Energy
3.5 years per loan
Efficiency Loans scheme, it was the
beginning of a long-term partnership Looking for a loan?
to modernise PEP.
Energy Efficiency Loans from the Carbon
Vince Marino said, “In order to succeed, Trust are a cost-effective way to replace
or upgrade your existing equipment with
can expand into new markets by investing a more energy efficient version.
machinery. The Carbon Trust’s loan Visit our website for more information
scheme was a perfect way to keep PEP and details on how to apply.
at the forefront of our market in terms of
technology, whilst enabling us to steadily
reduce our energy costs over time.”
Precision Engineering Plastics

“The Carbon Trust definitely helped our company in terms of financing with
loans spread over five years. If not for this, it would be much more difficult
for a company of our size to finance and purchase new equipment
and therefore to stay competitive.”
Vince Marino, Co-Director, Precision Engineering Plastics

The technology Besides being quieter and more energy

efficient, the replacements are also quicker How does it work?
PEP initially applied for a £10,900 – power factor correction
– reducing cycle times and running costs.
Energy Efficiency Loan from the
This has reduced PEP’s annual energy bill In an electric circuit, power is calculated
Carbon Trust to fit energy optimisers
by £18,700. by multiplying voltage and current.
to 19 motors used on injection moulding
machines and chillers around the site. At the end of 2008, the company used To deliver the maximum amount of
This change went on to provide annual a third Carbon Trust loan – this time £10,500 useful power they must be exactly
energy savings of £3,114. – to buy a power factor correction unit and in step – if they aren't, less power will
regulate the amount of power consumed be developed for any given current.
In February 2008, in line with its continued
by the plastic moulding machines. This The ‘power factor’ is the ratio between
growth, the company approached the
change should deliver annual energy the useful power actually delivered,
Carbon Trust again, this time for help to
savings of £4,600. and what it would have been had the
replace two injection-moulding machines
with newer models. We provided a second The company is now considering relocating voltage and current been in step. A poor
loan, of £47,285 to help fund the purchase its factory, at which point it will look at power factor means the current must be
of the new machines. further efficiency measures such as lighting higher than necessary to give the same
and insulation. amount of useful power. This increases
the load on supply cables and can,
depending on the tariff, increase charges.

Poor power factor can be improved, or

‘corrected’ by fitting capacitors to bring
the current and voltage back into step.

July 2009