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This item was published during the term of a previous administration that ended in April 2007

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Profitability and energy efficiency

29/04/2002

A partnership approach to energy efficiency and minimising waste can deliver tangible results to companies and have a major impact on their profitability, Deputy Enterprise Minister Lewis Macdonald said today.

He was speaking at Allied Distillers Dumbarton plant, where the company were announcing the results of their year-long project to reduce energy consumption at their sites and those of key suppliers.

The company announced that they and their key suppliers expect to make savings of around £2.6m over the course of the project.

Mr Macdonald said:

"Businesses often do not realise they can do a lot to help themselves enhance their energy and environmental performance. However, it is important that they adopt a process that seeks to drive efficiencies right down the supply chain. I applaud Allied Distillers for having the vision and forethought to have done exactly that. They have engaged their suppliers in the energy efficiency process and this has had tremendous results.

"Energy costs are often the easiest to reduce and every pound saved on energy bills can help to make companies more profitable. For every one pound knocked off an energy bill and added to profit, companies would have to increase turnover somewhere in the region of ten pounds to add that same extra pound to the bottom line.

The Minister continued:

"The Executive is committed to improving energy efficiency across Scotland and we have substantially increased the resources available to the Scottish Energy Efficiency Office (SEEO) to show this. Today's announcement by Allied Distillers shows that real savings can be made right across the Scottish economy. The time to act is now."

In November 2000 Allied Distillers were awarded upward of £50,000 by the Department of Trade and Industry (DTI) Partnership Fund to develop Environmental Best Practice through Partnership. Together with the Executive, Scottish Enterprise, SEPA and seven of their key suppliers they sought to improve their business and environmental performance. The measures employed to make the savings include improved energy management, water savings and reduced effluent.

The Scottish Energy Efficiency Office (SEEO) of the Executive is the main provider of energy efficiency advice to business and the public sector in Scotland. The SEEO encourages the take up of a broad base of energy efficient technologies, which will lead to reduced CO 2 emissions as well as cash savings to users. They can be contacted on 0141 242 5835.

Page updated: Thursday, July 22, 2004