November 2, 2006

Chicago Mayor Richard M. Daley joined industry, government and civic leaders on Tuesday, October 31, to launch the Chicago Waste to Profit Network , a public-private partnership that is the first project under the City of Chicago 's Green Business Strategy.

In announcing the program to an audience of 150 at the Chicago Cultural Center , Mayor Daley said, “The Waste to Profit Network will bring manufacturing leaders together to find ways to transform waste streams into revenue streams by converting the waste from one company into a resource for another company.

“More importantly,” the mayor continued, “the network will allow companies to work together across industries, and with the City, to find ways to cut costs, enter new markets, and create new products all while reducing waste to landfills and conserving energy. This is what government is supposed to do--bring business and government together to solve problems.”

Sadhu Johnston, commissioner of the city Department of the Environment, described the network as “a forum to facilitate profitable and efficient waste management and drive manufacturing innovation.”

The project team, which is led by the Chicago Manufacturing Center (CMC), includes the Chicago Department of the Environment, the Department of Planning and Development, the Illinois Department of Natural Resources Waste Management and Resource Center, the US Business Council for Sustainable Development, and World Business Chicago.

The initial pilot program, which will run through December 2007, is funded by the City of Chicago; US EPA Great Cities Program; the Illinois Department of Commerce and Economic Opportunity through its Recycling Expansion and Modernization Program; and the National Institute of Standards and Technology's Manufacturing Extension Partnership.

At Tuesday's kickoff breakfast, CMC President & CEO Demetria Giannisis explained that the network will feature groups of up to 25 companies working collaboratively with support from the project team to identify and develop potential by-product synergies. The goal is to identify at least three synergies during the pilot phase.

Ms. Giannisis introduced the charter members of the network: Abbott Laboratories, Baxter International, Cook Composites and Polymers, Curb Appeal, General Iron Industries, LaFarge Cement, S &C Electric and USG.

Two companies that are already benefiting from by-product synergy shared their experience with Tuesday's audience. Michael Gromacki, manufacturing director for Cook Composites and Polymers, said his Kansas City-based company achieved a 3-1 return on investment on their first project, and expect the ROI to increase to 5-1 this year and eventually 20-1.

“The multiplier effect really kicks in when we look upstream for potential savings,” Mr. Gromacki said, adding that collaboration among companies is the key to success: “Through consistent dialogue and networking we learn how we can help each other.”

Jenni Cawein, manager, corporate EHS manufacturing for Baxter International, described the Waste to Profit Network as “an incubator for entrepreneurship and technology development.” She noted that Baxter last year generated 56 metric tons of waste, of which 60 percent was recycled. But she went on to say that is “only a drop in the bucket” compared to the waste generated by Baxter's customers in the health care sector. Finding ways to reduce medical waste is a high priority for the company, she stated. “We at Baxter are going to work hard on this. Our main goal is to help our hospital customers get their costs down.”

Companies that are interested in finding out more about the network may contact Karen Wan, Waste to Profit program manager, at 312-542-0430.

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