As part of its commitment to building a more sustainable business model, ME Elecmetal’s Rancagua Plant has achieved certification under Chile’s Clean Production Agreement (APL) titled “Transition to a Circular Economy.” This initiative brings together companies from a range of industries and is supported by CORFO (Chilean Economic Development Agency), the Sustainability and Climate Change Agency (ASCC), the Undersecretaries of Health and Environment, and Acción Empresas.
The primary goal of the agreement is to assess and improve the circularity of production processes across participating companies. Collectively, these companies invested CLP$12,359 million in facility upgrades, which have already led to short-term cost savings through increased efficiency in resource use. Long-term benefits are expected to grow through reduced consumption and waste, expanded use of renewable energy, increased water reuse, and enhanced material recovery both within and beyond each facility.
As a result of these efforts, the participating companies achieved significant environmental gains—including saving over 295,000 cubic meters of water and recovering an additional 15,000 cubic meters. They also avoided the emission of 30,669 metric tons of CO₂ equivalent, thanks to a higher certified use of renewable energy and optimized production cycles.
Advancing Circularity Through Strategic Measurement and Action
In line with ME Elecmetal’s global circular economy strategy, the 2024 initiative led to the development of a comprehensive Circularity Flow and a global Circularity Map for all ME Elecmetal foundries. In Chile, these efforts were formalized through participation in the Clean Production Agreement (APL), with the goal of improving operational efficiency at the Rancagua Plant. This was achieved using the Circular Transition Indicators (CTI) methodology developed by the World Business Council for Sustainable Development (WBCSD), resulting in a baseline circularity indicator of 83%.
As part of the APL, a Circularity Baseline was established using an international methodology created by the Ellen MacArthur Foundation and implemented through WBCSD and its Chilean partner, Acción Empresas. To support implementation, ME Elecmetal conducted extensive circular economy training—reaching 300 employees through 16 dedicated courses. These trainings enabled tangible improvements, including increased reintegration of by-products into production and a significant reduction in waste previously sent to landfills.
To further guide the transition, ME Elecmetal leveraged the Circular Transition Indicators Guide 2.0, developed by WBCSD and KPMG. This tool enabled the Rancagua Plant to assess and benchmark its circularity performance. Additionally, ME Elecmetal adopted the Practical Guide for the Selection of Circular Suppliers, providing its teams with a structured framework to evaluate supply chain partners based on their alignment with circular economy principles.
Achieving the 83% circularity indicator was the result of a detailed identification and classification of all process by-products by volume. This analysis informed the development of short-, medium-, and long-term action plans to reduce and manage these materials more efficiently. The entire process was subject to rigorous auditing—from waste generation data collection and condition verification to outcome measurement and continuous improvement planning.
Currently, 77% of the Rancagua Plant’s waste is upcycled through third-party partners, reinforcing ME Elecmetal’s commitment to responsible resource management and advancing its circular economy objectives. This high rate of material recovery suggests that the plant’s net circularity indicator will exceed the established 83% baseline, marking continued improvement since the 2024 assessment.
Several key projects have been developed under the framework of the APL, each designed to enhance circular performance and promote long-term sustainability:
|
|
2024 | 2025 (to March) | Goal |
|
Recycling (%) |
43% | 92% |
100% |
|
|
2024 | 2025 (to March) | Goal |
|
Tons upcycled |
30.551 | 2.496 |
100% |
Recognition and Industry Leadership
The APL certification not only affirms ME Elecmetal’s leadership in circular practices but also marks an important milestone in the formalization of its sustainability efforts at the Rancagua Plant.
“This is a very important recognition by CORFO’s Sustainability and Climate Change Agency, as it officially certifies the progress we have made in terms of circularity in Rancagua and allows us to formalize all the work we have developed,” said Matías Bustos, Operations Manager of the Rancagua Plant. “The most important aspect is that we were trained in an international methodology grounded in global standards.”
— Matías Bustos, Operations Manager of the Rancagua plant
Government representatives have also recognized the broader significance of the initiative:
“Our country has become an example for others on how the circular economy can be implemented in production chains. Concrete actions, such as this APL, which has the participation and commitment of highly relevant companies, go precisely in that direction.”
— Maximiliano Proaño, Chile’s Undersecretary of the Environment
ME Elecmetal worked alongside a distinguished group of companies across industries that joined this APL, including:
Aceros AZA, Aguas Antofagasta, Banco Santander Chile, Cemento Polpaico, Compañías CIC, Chilexpress, Metro, Gasco GLP, Cartulinas CMPC, Envases impresos Cordillera, Faenadora San Vicente Agrosuper, Joy Global Chile, Komatsu, Distribuidora Cummins Chile, Rosen, Colbún, Virutex Ilko, Mamut, Volta Servicios, SMU, Masisa, Cemento Polpaico, SQM y Terminal Pacífico Sur Valparaíso.
