Capacity development supported by FMO

GRI 102-12

At LC Packaging, sustainable production and consumption are a top priority. With the support of FMO , the Dutch entrepreneurial development bank, we have been able to conduct several long-term initiatives to help sustainably develop and expand our SA 8000 certified production facility Dutch-Bangla Pack Ltd (DBPL) in Bangladesh.

Leading by example

In 2008, LC Packaging started its own commercial production facility in Bangladesh. The ultimate goal: creating high quality packaging produced under outstanding circumstances in a healthy and safe working environment with as little negative impact on the environment as possible. We wanted to create the best production facility in Bangladesh, a great place to work. We wanted to show the world how production in underdeveloped countries can be done differently, responsibly.

The economy in Bangladesh has enjoyed a great annual growth, but its financial sector is still small and underdeveloped. As such, access to long-term financing is challenging. Through FMO, LC Packaging can realise production standards in a country where commercial and CSR objectives do not automatically go hand in hand and are not obvious.

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Expanding sustainable production activities

Today, DBPL is a leading producer of Flexible Intermediate Bulk Containers (FIBCs), also known as big bags, and has an annual production capacity of 2.5 million bags. As an innovative and sustainability minded company within the packaging industry, we saw chance to expand our production facility and create more high quality jobs in one of the world’s most underdeveloped countries to date. FMO was able to provide the financial backing needed to further grow DBPL and expand our operations.

In 2019, we officially opened our expansion, DBPL II, with state-of-the-art machinery for the high quality, foodsafe, sustainable production of FIBCs. With the expansion we were able to create 650 additional high-quality jobs.

With a strong focus on sustainable business and sustainable production, we conducted a twofold environmental footprint research with the support of FMO in the run-up to this expansion: a corporate footprint research regarding waste, water, energy and CO2 and a product lifecycle research to calculate the carbon footprint of FIBCs from cradle to grave. Based on these outcomes we have been able to make our production process more sustainable with efficient use of resources. Special attention is given to waste management and reduction through our GreenBANGLA recycling initiative.

Recycling up to 80% of our process waste

In 2018, we initiated a first-of-its-kind waste recycling project, together with our local Partners in Bangladesh: GreenBANGLA. Thanks to a state-of-the-art Starlinger Recycling Machine, 20 additional high-quality jobs were created for the purpose of upcycling our process waste. In 2019, we recycled 737 mt of polypropylene, which is 80% of our process waste. GreenBANGLA is one of the initiatives that has helped us reduce our waste production worldwide by 60% since 2017.

Supported by FMO, we have implement our social responsibility throughout the entire supply chain, setting an example in the industry when it comes to a safe workplace. With the help of FMO we are able to realise our commercial and CSR objectives in Bangladesh. Specifically through our SA 8000 certification, with which our implemented standards and infrastructure are strictly controlled, secured and proven. Not only today, but on a structural long-term basis.

Read more about FMO
Read more about our GreenBANGLA initiative

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At LC Packaging, we value our long-term partnerships with production partners, NGO’s and others. We believe there is always room for innovation and development when it comes to sourcing, designing, manufacturing and establishing after-use solutions for our products and collaborate with partners who can help us do so. In our LC Partner Stories we share projects and initiatives we are working on with our trusted partners.