Orange has capacity to meet over 20% of nation’s copper wire demand

Friday, 3 October 2014 05:35 - - {{hitsCtrl.values.hits}}

Foreign exchange saving of $ 16 m Orange Electric has taken yet another step in its sustainability journey; this time putting into operation a state-of-the-art copper recycling plant that can process all the copper waste available in the country. The estimated amount of copper that is available for recycling in the country is 200 metric tons every month and Orange Electric Managing Director Kushan Kodituwakku says that their recycling systems has the capacity to process the scrap, into 99.98% pure high grade copper. Although, their plant has the facility to extend their capacity to cover the entire 200 metric tons, they currently handles only amounts they can access, which is being recycled and used cable manufacturing outfit in Meegoda. The ISO certified Orange factory at Meegoda produces electric cabling that meets the highest international standards. For this company, backward integration is an important piece in the jigsaw puzzle of modern day commerce, for the simple

reason that having control over the raw material supply helps them achieve high quality at low cost. However, the company has one problem i.e. their control does not extend far enough to net in all the copper available in the country, as there is an illegal below the line market, which exports copper surreptitiously to India. “This is very unfortunate since our plant has the capacity to recycle the entire 200 metric tons of copper scrap which if accessible to us, would meet more than 20% of our cable requirement. If however, authorities can put the necessary regulations in place to control these illegal exports, we can push for this improvement in our market, having copper wire produced through recycled material, which would be close to a saving of $ 16 million per annum,” said the Managing Director of Orange Electric. Sri Lanka is currently facing a shortage of copper which has hindered the expansion of traditional and small industries in the country, due to copper being illegally exported mainly to India and Japan despite the Government ban. Sri Lanka has been mainly exporting its copper waste to India and according to the 2012 annual report of Sri Lanka Customs on imports and exports, Japan has recently become a major buyer our local copper waste and scrap. Since 2007, Sri Lanka has exported 1,262, 963 kg of copper waste and scrap worth Rs. 1.049 billon. According to a Customs report, Sri Lanka has imported 67,664,349 kg of copper wire and cables amounting up to Rs.45.16 billion since 2007; ironic considering the availability of waste and scrap copper within the country which can be used to produce even higher grade cables that what is imported. In 2012 Sri Lanka had imported 23,820 kg copper waste to the value of Rs. 11, 022,624.00 and in that same year, exports of scrap copper is recorded as 452,110 kg at a value of Rs. 346, 868,039.00. This is not the first time Orange Electric has got into recycling. It is a pioneer in the whole of South Asia for recycling mercury in CFL bulbs and their safe disposal. It has even shared its expertise with Portugal by setting up a recycling plan in that country. The Orel Corporation, which owns the brand Orange, is currently engaged in the business of manufacturing, exporting and importing world class electrical products, including switches and sockets, CFL lamps, low voltage switchgear Alpha, cables, electrical accessories, etc., with a production range including more than 4,000 electrical items. The company also has a great deal of focus on its R&D section which is personally supervised by the Managing Director, who himself academically has a research and development background. His forward-thinking and innovation has brought forth groundbreaking initiatives by Orel, saving not only the foreign exchange for the nation, but also going towards protecting its environment.