European group helps Cebu SMEs

MANILA, Philippines - The German organization Sequa gGmbh in cooperation with the European Chamber of Commerce of the Philippines (ECCP) has started a P75-million fund to help Cebu-based Small and Medium sized Enterprises (SMEs) develop sustainable and environment friendly processes.

In a statement, ECCP executive vice president Henry Schumacher said that they have formed a Philippine and European consortium dubbed as the SMEs for environmental Accountability, Responsibility and Transparency (SMART Cebu) project.

“The aim is to conserve energy and raw materials while also minimizing the negative impact of the production process on the environment. This should mean less waste and a cleaner and more eco-friendly production,” Schumacher said.

“Global markets, especially in Europe, are requiring greener adaptation of production. SMEs in the SMART Cebu project will be aligned with the demands of these types of markets. Green products will result in greater consumer and market acceptance,” he said.

The overall aim of the project is to improve the competitive advantage of Cebu SMEs in the global export market by having them develop products from ecologically-friendly processes and practices.

Once developed, these products will then be presented to Europe and Asia as models of what Cebu can offer to the global market for greeen products. Schumacher said many developed countries are looking to buy products that were created on the basis of sustainable production and consumption principles.

The project is being co-funded by the European Union and the German Federal Ministry of Economic Cooperation and Development. Chosen as recipient industries of the project are 450 Cebu-based SMEs in the furniture and furnishing business; fashion accessories; and gifts, toys and houseware.

Others involved in the project are the Cebu Fashion Accessories Manufacturers and Exporters, Cebu Furniture Industry Foundation, Cebu Gifts, Toys and Housewares, Association of Development Financing Institutions in Asia and the Pacific, and the EFA Efficiency Agency NRW.

According to Schumacher, the implementation of the SMART Cebu project will create a new line of eco-products that can be exported to other countries.

Part of the SMART Cebu project is to train business membership organizations and local production experts from the three selected industries on environment-friendly manufacturing processes.

The project also aims to establish a network of scientsts and industrial experts to bridge the gap between the academe and industry groups and helping propagate clean production processes among Cebu’s industrial areas. The consortium would also work closely with the government for additional incentives including tax holidays for companies that are adopting green manufacturing processes.