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.