Visy

Visy

Established in Melbourne in 1948, Visy has grown to become one of the world’s leading packaging, paper and recycling companies. The company employs more than 5,500 people across 120 sites in Australia, New Zealand and Thailand, with a further 5,800 employees in trading offices throughout Asia, Europe and the USA.

Challenge

With multiple manufacturing sites consuming large amounts of power, Visy is acutely aware of its corporate responsibility obligations when it comes to sustainability and energy efficiency.

One of the areas identified for improvement was the energy used for lighting across the company’s facilities, particularly the inefficient high bay lights used in many warehouses.

The decision was made to start replacing the existing lights with energy efficient LED lighting to help reduce energy consumption, lower power costs and meet the company’s sustainability and environmental targets.

However, any new lighting solution needed to be implemented without using upfront capital.

Solution

As an existing finance partner of the Visy Group, Northquest was asked to develop a financial solution that would enable Visy to start installing LED lighting across its facilities.

Northquest proposed a 5-year Lighting-as-a-Service agreement whereby Visy could pay for the infrastructure out of their operating budget rather than their capital budget.

This meant Visy was able to enjoy the full benefits of LED lighting and still be cash positive, with electricity savings realised from day 1.

Outcome

Visy now has energy efficient LED lighting installed at 12 of its sites with more to come. Since installation, these sites have reduced their lighting energy consumption by up to 70%, which has delivered significant cost savings to the business.

The company was able to access the very latest LED lighting systems for its facilities – systems that generated net cash benefits from day one with no capital outlay.

What’s more, with a Northquest Lighting-as-a-Service agreement in place, Visy also enjoys peace of mind knowing they have a reliable partner to look after the ongoing management and maintenance of the new lighting.

Northquest’s finance solution has enabled us to install LED lighting across many facilities without dipping into our capital budget,” says Mark Carroll, General Manager, Finance, Visy Group.

“This has resulted in reduced energy consumption and lower energy costs, and helps us move confidently towards our sustainability targets.”

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