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Industrial Cooperation

A New Business Model Driven by Circular Procurement

      The Rent Instead Buy Model is introduced to the company for equipment procurement .Through the changes of the procurement model, the linear economy in which a large amount of raw materials are consumed for manufacturing and profits are made by stimulating consumption is reversed, and the core spirit of circular economy is implemented, guiding the industry supply chain to change the business model step by step. Starting from November in 2018, the Company started to rent all the LED panel lights and dual mountain ceiling lamps instead of buying them, with the lease period of 10 years and 9,909 lamps in total, and the total amount is NT15.57 million dollars.     
      In addition, the on-going “Shalun Smart Green Energy Circular Residence” also introduces the concept of circular building materials. Building materials, equipment and packaging materials with recyclable and reusable characteristics are purchased to introduce the concept of “building material bank”, and in the future the flexibility of material utilization can be increased by disassembling or assembling the building materials based on the needs for space design, reducing the environmental impact while promoting the new thinking in the domestic architecture, design and construction industries.

The Rent Instead of Buy Investment Model

      After evaluation, for business investment projects with prospects and demands for large area of land but requiring highly professional maintenance, repair or operation (such as solar photovoltaics), the Company would provide the installation site and invite the manufacturers to install equipment at their costs and lease the equipment for our operational use. During the operation period, the manufacturers of equipment are responsible for the maintenance and repair, and the Company will pay the usage fee for equipment use and awards for the improvement of equipment efficiency.   
      Based on this model, the Company can make good use of the principle of leverage and cooperate with external professional teams with our own advantages of land and funds, changing the original self-made, self-operated model and greatly reducing investment risks, creating a new win-win-win operation model. Currently the cooperative construction project of ground-type power generation equipment in the shut-off plant area in Dalin Sugar Factory has completed the grid-connection, with a capacity of about 1MW.

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