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SCG’s Lampang plant: a role model for sustainable development in business operation: Poramen Pradaphon, Siam Cement Lampang (Thailand).

Filmed at Cemtech Asia 2015, 21-24 June, Grand Hyatt, Bangkok, Thailand

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Okay, good afternoon ladies and Gentlemen! My name is Poramen Pradaphon and for this session, I have about 20 minutes to talk about this session. It's going to be about the SCG Cement Plant in Lampang Province, a role model of sustainable development in a business operation, and name of our company is Siam Cement, Lampang.

We're located in North of Thailand with a capacity of about 2.4 million ton per year. And today, I would like to talk about the overview of Siam Cement Lampang and how we affect to the environment and community, and after this, I will going to be referring to Siam Cement, Lampang as a SLP. SLP is under the cement building materials. We registered in 1994 and commercialized in 1996 with area about 112 Hectares, and the capacity about 2.4 million ton per year, and right now we have 292 employees and 1,300 contractor, and we always follow the SCG's four core philosophies, and we also have the SLP's four commitments.

The first one is to create jobs, the second is develop community, preserve environment, and the last one is be a good citizen of Lampang Province. I would like to give you some example of the four commitments. The first one, create jobs. 71% of contractors and 97% of employees are from Lampang Province.

The second, develop community, more than 500 MB per year of the tax revenue is given to the Lampang Province. And the third commitment is is preserve environment. We have a green factory concept, the Check Dams project that I'm going to talk about it later, and Green Energy Process WHR, and the gasifier technology, RDF, and the last commitment is, be a good citizen of Lampang. In every year, we always promote and participate with local festival, just like their Thai New Year. And right now we have Mr. Surachai Nimlaor as a Managing Director of our company. This page show about the awards and achievements that we have gotten since we began operation. And now we've five main products, for example, the Portland Cement Type I or we call it the Elephant, and the next one Mixed Cement or we call it the Tigers. And this is the picture of our factory right now, but later you will see it's surrounded by the green forest, but I will show you the picture before when we came to the area later.

And during the last 20 years, we become a leader of the sustainable development, too may project and activity, but today, I would like to talk about our three highlights. The first one, Semi Open Cut Quarry, the second is Energy Conservation, and the third one is Build Check Dams in One's Heart or the Check Dam Project. I would like to start with the Semi Open Cut Quarry. We had the first factory that deals the semi open cut quarry technique, and the concept is, we just the top of the mountain and then dig top down. Imagine that you have the water melon and then you cut half of the water melon, eat inside the water melon, you still can see the skin of the water melon, so it's just like the concept of the semi open cut quarry.

And the reason why we chose this technique, because it better controls dust and noise, and vibration of the mining, and it reduces impact to the ecosystem, and it also keeps the nice scenery of the mountain. And after we began the mining activity, we also create the five step Model of the Rehabilitation, parallel with the mining activity.

And here I have the picture of the mining area in SLP area. This is the final area of the mining and after we finish it, we plant a tree in the area before we start the next area of the mining, and this is not a picture that show you the different, after we plant the tree in the area. And you'll see that after we have rehabilitation in the mining area, the bio-diversity have returned to the area such as the number of mammals, birds, amphibians, and reptiles.

All these picture is from the SLP area. We also found about 57 species of the local plant, that we use all these local plant to rehabilitate in the mining area also. And the next highlight is energy conservation. The goal of the energy conservation are to reduce fossil fuels uses by burning alternative fuels.

And to reduce the Green House gas emission and part of the highlight of the project Gasifier Technology for the Soiled Lignite or the Low gate Lignite, and Waste Heat Recovery, or WHR, Refused Derived Fuel, RDF. The Gasifier, why do we need to use the Gasifier? Because we know that the soiled lignite every always throw it away in the past still have some heat about 2,000 to 3,000 kcal/ kilogram, that's why we decided to use, the Gasifier. And the Waste Heat power Recovery, the reason why we use the waste heat recovery, because this is like the gasifier. We know that the waste heat that will be blow it away in the past still having the temperatures of about 300 Celsius that can produce the steam, and then the steam turbine generate, the power and right now we can generate the power of about 8.5 mega watt or about 27% of the total that we use in the plant.

And another one is the Refused Derived Project. In the past, we either bury or burn the solid waste that create some emission in the air. So, we think that we need to source solid waste into three group; the three Rs - Reduce, Reuse, Recycle. The fist one, recycle which we can sell then make some money, and another one the decomposible, which we can create a compost to use in the garden, in a plant, and the last one is burnable or the RDF, most of it is plastic and paper that we use in office.

We can use as the alternative field in the cement process. So, after we know that we can manage our solid waste, we don't have to bury, we don't have to burn all the solid waste, we give this solution to the community and the first community is Bansa village, which is nearby our factory that have the same problem. They have to burn their solid waste, they have to bury their solid waste, even in the backyard they burn their solid waste, in their front house that creates a lot of emission, bad smell. So now, we help them to sort the solid waste and build the management center of the solid waste.

So, RDF waste is the plastics and the paper that they can send to us to use as the alternative fuel. And another highlight is the Check Dams Project. You remember this picture I showed you before about the factory that's surrounded by the forest. Right here is our factory and this is the area that we are taking care of, about 112 hectares, but in the past, when we came it looked like this, this picture wild fire in every year destroyed all the tree, that's why the deteriorated forest. So, when he came to this area, we think that we need to improve this area to make it better. So we planted tree by our employee and contractor, we have each other to plant the tree, this is the area before we came, you'll see.

After we planted tree, the tree grow, but when the Summer came again, and wildfire destroyed all the tree that we planted, so we didn't stop. We tried to plant again, we planted tree again in the same area, and let the tree grow, and it kept growing, growing every month, but then after the Summer came, so do due to wildfire in the area, and destroy other tree that we'd plant. You can see this is the same tree right here, in the middle and in the right picture, it's the same tree.

So, it's like a never ending cycle. Wildfire, plant a tree, wildfire, plant a tree, never ending cycle. So we think we need to find another solution to solve this problem. Luckily, our team had a research about a Check Dam at that time. So, in 2003, our former president have told us to learn about the Check Dam project, and after we learnt about the Check Dam project, we came back to our area and built our own Check Dam in the factory area. And this is a picture of the first Check Dam that build by employee and the contractor. So, now we have more than 4,000 Check Dam in the factory area. So, the result of taking care of the forest during the wildfire prevention every year since we began operation. Plant a tree, and built check dams in the area.

It's decreased the number wildfire in the area from about 200 times in the year, now it's about zero times in a year. This is the result of what we did in 20 years. As you can see in this picture, in 1993, and this is the picture in 2006 in the same area. We try to take the care of the forest and bring back the forest to the area as you can see in this picture. Compare the top picture and the bottom picture. And another index that can tell us about our result, that we're taking care of the forest, is the species of birds. You will see the species of bird in 1999 about 57 species, but now it's increased to about 166 species of bird in our area. We

just monitored, and this picture is a picture of birds in SLP area. It's another picture, and we also have a book, a bird watching manual. If you go to our plan, I can give you this book. Okay, and that's how we prove that the Check Dam project, the wildfire project bring back the forest to the area and bring back the water. It gives you solution to the community also just like the waste management

because they have the same problem. They don't have water for the agriculture, but they need more water than us. So, after they involved this project with us, about 43 communities that involved this project with us, now they have water to use in the agriculture and some of their community have enough water to produce the power, to generate the power to use in the community.

And now, more than 50,000 check dams were created in the SLP area and community area. And in every year, SLP people are important person, SLP always come to our plant and help help to create the check dam and do the WiFi implementation in the area. So, what I can tell you is, SCG, we think that taking care of the environment and community is the most important thing to do, not just doing the business. And before I end my presentation, I would like to show you the video of the SLP Bio-Diversity that can show the research of what we did, what we have done during these last 20 year to their area. And all of this creature and animal are from SLP area. See you in about three minutes. This is the end of my presentation.

Thank you for your kindly attention. Thank you.

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