What is Circular Economy?

According to Ministry of Sustainability and the Environment, the Circular Economy focuses on designing waste out of the resource ecosystem and maximising the value of resources by keeping them in use for as long as possible, an alternative to a traditional linear economy (take, make, waste).

This approach is also aligned with the objectives of Singapore Green Plan 2030:

• Achieve a 70% overall recycling rate
• 30% reduction of waste being sent to our Landfill, Pulau Semakau

How does XCEL adopt the Circular Economy approach?

1. Pinewood are sourced from FSC certified plantations and processed into wooden planks. 
   
   
2. The wooden planks are manufactured into wooden pallets.
   
   
3. Wooden pallets are often used for shipping goods efficiently, keeping them safe & protecting them from damage. However, the pallets might be broken or damaged during the process of shipping.
   
   
4. Instead of disposing them, XCEL will repair & recycle every wooden pallet! 
   
   Steps to recondition the pallets:
   i. Component breakdown (remove dislodge blocks, broken planks etc)
   ii. Reconstruct the pallets
   iii. Grind off the previous logos/markings
   iv. Heat treatment
   v. Deliver the reconditioned pallets!
   
   
5. If the pallets can no longer be repaired or recycled, the materials (including off-cuts) will be upcycled into hybrid pallets or lifestyle products.
   
   
6. The remaining sawdust, wooden chips & shavings will be collected and can be converted into biomass pellets for biomass energy. Alternatively, the sawdust are given away for free through our Free Sawdust Programme to oil companies and the communities.
   
   

Wood is a valuable natural resource as it stores carbon and helps reduce the amount of carbon in the atmosphere. Hence, wooden pallets should be reused to the greatest extent possible.