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To foster continuous business growth, it is crucial to enhance the capabilities of entrepreneurs, enabling them to keep pace with global developments and increase the country's competitive edge. At the same time, environmental challenges cannot be neglected or overlooked. By 2050, the goal is to achieve carbon neutrality, and by 2065, to reach net zero emissions, meaning that all machinery and processes must not emit carbon dioxide (CO2).
In this article, SCGC, a leader in integrated chemical innovations in ASEAN and globally, will explore Industry 4.0 to gain an in-depth understanding of the Green Industry, and follow the intriguing stories of REPCO NEX Industrial Solutions. This case study from a leading company exemplifies the push for industrial plants to achieve the true success of becoming Industry 4.0 and Green Industry.
From the inception of the Industry 4.0 concept in Germany, it has now been adopted worldwide, including in ASEAN and Thailand, which is one of the world's key manufacturing bases. Recently, the concept of “Industry 4.0” has been widely discussed in Thailand as the future direction of the industry. This approach combines automation in production lines with the Internet of Things (IoT), enabling machinery in the production line to communicate with relevant parties for real-time management and control. This integration results in higher production efficiency and reduced costs.
According to a study by McKinsey, a leading global business consulting firm, transitioning to Industry 4.0 could add between 1.2 to 3.7 trillion USD to the global economy by 2025. In ASEAN alone, this increase could range from 216 to 627 billion USD. ASEAN manufacturers who have already begun transitioning to Industry 4.0 report that this adaptation has increased their production productivity by 10-50 percent and improved Overall Equipment Efficiency (OEE) by 10-20 percent.
The significance of Industry 4.0 extends beyond merely reducing costs and increasing production efficiency. The impact and benefits of this approach are much broader, as it paves the way toward sustainability. This helps organizations achieve their Sustainable Development Goals (SDGs) in a tangible way. The issue of sustainability has garnered increasing attention and commitment within the industrial sector. The evident accelerator is “climate change,” which includes phenomena such as global warming and global boiling, both direct consequences of the climate change crisis in recent years.
According to data from the UN Global Compact, conducted by the Global Compact Network Thailand (GCNT), a survey of 1,232 CEOs from 113 countries across 21 industrial sectors revealed that over 70% believe they must adjust their business plans to cope with climate change, or their businesses will struggle to survive. The private sector must urgently revamp business models and prioritize the conservation and restoration of nature and the environment. Therefore, entrepreneurs and investors must seek investment opportunities now, even if it means higher costs. This investment is for the future, as failing to act now will inevitably result in missed opportunities and increased operational costs in the long run.
Green Business, or conducting business in an environmentally friendly manner, is another trend that industries worldwide are embracing as part of a new business model. This model focuses on efficient resource utilization, maximizing benefits, and minimizing environmental impacts. As a result, green businesses are gaining immense attention, with analysts worldwide confirming that this is the business of the future.
In Thailand, a noteworthy example of successfully applying the concepts of Industry 4.0 and Green Business is REPCO NEX Industrial Solutions within SCG Chemicals, or SCGC—a leading chemical provider in ASEAN and one of the largest integrated petrochemical companies in Asia. This case exemplifies how integrating these innovative and sustainable practices can lead to tangible success.
REPCO NEX Industrial Solutions, a company under SCG Chemicals (SCGC), provides integrated maintenance and asset performance services. These services encompass engineering, operations, maintenance, and machinery status inspections using technologies and digital solutions. With over 40 years of experience in the petrochemical industry, REPCO NEX Industrial Solutions has developed expertise in creating products, services, and solutions that help customers operate efficiently and sustainably while being environmentally friendly.
Partnering with technology leader AVEVA, a global leader in engineering and industrial software, REPCO NEX Industrial Solutions collaborates in planning, designing, and implementing the Unified Operations Center Solution. This solution enables the company, along with SCGC, to fully embrace Industry 4.0 and perfectly meet the needs of Green Business, or environmentally friendly business practices.
Beyond its partnership with AVEVA, REPCO NEX Industrial Solutions has earned the trust of leading companies both domestically and internationally. It provides services across various sectors, including the petrochemical industry, power plants, and the food and beverage industry. Notable examples include:
After the Digital Reliability Platform (DRP), or DRP Center, had been operational for a period of time, it yielded tangible and clear results. The integration of AI has enabled the prediction and prevention of potential issues, allowing machinery to operate at full efficiency. This has significantly reduced maintenance costs and the likelihood of unplanned downtime, thereby enhancing industrial competitiveness. Importantly, it addresses safety concerns within the plant and extends to community safety. The reduced energy consumption resulting from minimized downtime has positive environmental impacts. This is equivalent to a reduction in carbon dioxide emissions by up to 800 tons per year, or the equivalent of planting approximately 850 acres of trees.
In addition, REPCO NEX Industrial Solutions has developed and delivered innovations to support the generation of alternative energy. They have created floating platforms for installing Solar Power Systems on water surfaces, increasing the area available for generating clean energy. These platforms are available in both standard models, which meet basic usage standards, and premium models, which cater to more specific and unique customer requirements. In addition, it also offers Robotic Inspection technology for examining the condition of tubes within steam boilers, which are essential for converting fuel into steam to generate electricity. The robotic inspection technology ensures that the condition of every tube is thoroughly assessed, preventing leaks that could reduce electricity production efficiency or cause unplanned shutdowns. Additionally, REPCO NEX Industrial Solutions provides Smart Sensors that monitor machinery conditions in real-time. These sensors enhance maintenance efficiency by providing immediate alerts when abnormalities are detected. This timely detection allows for prompt preventive measures, ensuring continuous and uninterrupted plant production, avoiding losses of raw materials and energy.
REPCO NEX Industrial Solutions recognizes that integrating technology to manage SCGC's plants, as well as those in both domestic and international industries, involves multiple factors. These factors start with the organization's vision, the dedication and expertise of its employees, the selection of technology suitable for each industry, and close collaboration with partners. By combining efforts with leading global industry partners, it helps propel Thailand's industrial sector toward achieving the success of Industry 4.0. This aligns with Green Business principles, driving business growth and ensuring a sustainable environment.
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