Kraus Group
Level 2 – Kraus detail implementation
Water reduction project
Background
Kraus Group’s 850,000 sq ft site in Waterloo, Ontario is a major
energy and utility user, spending CAD $3.8 million annually on the
water, gas and electricity required for its production processes.
Energy and utility reduction was identified as a key focus by Hilco
on its acquisition of Kraus in June 2012 and a 90 day improvement
plan was put in place to target an initials ‘phase one’ $200,000
annualised saving with any capital expenditure required having a
payback within three months.
A multi-disciplined energy reduction team was established to
detail measures for all major energy and utility usage systems
across the site and to devise and to implement low cost initiatives
to reduce consumption. The measurement process highlighted
a number of initial utility reduction targets, including ‘vacuum
pump’ systems.
Large vacuum pumps are used to suck the water out from the
final treatment process in carpet manufacture and were identified
as a key target area for water consumption. By design, these large
pumps use vast amounts of town water to achieve a vacuum
seal. The water resides in the pump for only few seconds and
is then dumped to drain, eventually passing into the municipal
water treatment facility. Although modern systems are much
more efficient in terms of water use, these replacements would
incur a capital cost in excess of $100,000.
At Kraus, charges are levied for both supply and disposal
amounting to $3.60 per ton of water used giving an annualised
water charge of over $120,000 for one vacuum system alone.
Hilco’s Role
Having led the investigation process to establish the initial
reduction targets, the Hilco restructuring team then worked with
the site’s engineering manager to devise a creative, low cost
water recycling unit to avoid the need to dump the pump supply
water to drain.
Results
The system was based on a combination of new and used
components, including a 1 m3 proprietary transport container
that cost only $150. The total capital cost of the system, including
all automatic control systems, piping and installation, was only
$6,500. The entire system was designed and built in house with
no external labour costs
Commissioned in December 2012, the system is now operating
successfully and measurements confirm that water usage has
reduced by over 97%, generating an annualised saving in excess
of $90,000.
In total, the energy team has delivered measured annualised
savings of $260,000 with a capital expenditure of less than
$18,000, significantly beating original ‘phase one’ targets.
Key Facts
Results
›850,000 sq ft carpet manufacturing
› Total of $260,000 energy and utility
›Energy and utility spend over $3.8m
› Total capex of under $17,000
› Water recycling system devised at
facility
p.a.
›Energy reduction team established to
measure and reduce usage by
$200,000 in first phase
›Vacuum pump systems identified as
a major cause of water wastage
www.hilcocapital.com • Tel 020 7317 2050
savings achieved
minimal cost ($6,500)
›$90,000 annualised saving on
water purchase and disposal
charges