Innovation integrates ecology and investment

Michael Taylor
Michael Taylor

Global Courant 2023-05-13 11:05:51

What for some is garbage for others is a treasure. It is a phrase that is often seen on social networks and informative pieces related to the recycling of materials, the reuse of discarded furniture or the restoration of antiques of all kinds, but it is very useful in the case of the use of agro-industrial surpluses. This week the investment of the Indian giant Yash Pakka, specialized in the manufacture of packaging and utensils based on natural fibers and, therefore, compostable, was announced. Said company contemplates installing a plant in the country and it would be its first in the American continent, in order to expand the scope of its eco-compatible products.

Indeed, concerns about the polluting impact of other materials and the constant calls for their reduction turn the announcement into a confluence of innovation, the environment, and productive investment. The initial understanding integrates three Guatemalan mills that will provide the sugarcane bagasse to make bags, packaging, glasses, straws and other items. This waste has been used to generate electricity from biomass, but given the high level of sugar production, there is now a new profitable reuse channel.

The commissioning of the new plant is scheduled for 2025, since Yash Pakka is currently looking for suitable land and will have to bring all the machinery for the installation. However, it is foreseeable that this operation will generate direct and indirect jobs, as well as internal marketing opportunities. Likewise, it is expected that most of the production will be destined for the US market.

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This once again highlights the reassessment of Guatemala’s geostrategic position, in accordance with the new nearshoring trends. The transfer of similar utensils from India reduces competitiveness, due to shipping times and costs. Once production is established on national soil, it would have more immediate land and sea exit points to the United States.

The company explored countries in Central and South America, but settled on Guatemala. This should alert, especially those who are marching in the electoral campaign, the urgency of addressing the problems of the country’s road infrastructure with a futuristic vision. The bottlenecks in various locations, especially en route to the border with Mexico and El Salvador, are an example of logistical limitations. The Odebrecht fraud, forged and committed a decade ago, continues to pay its ignominious bill of time and cost in the transport of goods. The more than Q3 billion granted to the Ministry of Communications have been of very little use, since the coastal highway continues without signs, without security fences in numerous sections and with bridges in parsimonious repair works, but whose funds have already been committed.

Returning to the topic of the sustainability industry, despite its importance, government investment to promote research and development of products and solutions based on recycling, renewable energy and the conservation of natural resources remains very restricted. There are no robust tax incentive programs for the invention and production of biodegradable raw materials. And although we are three months away from the entry into force of the waste classification law, there are few municipalities and state agencies that put it into practice.

Innovation integrates ecology and investment

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