Industrial Estate: Economic Growth and Environmental Issues Require Coexistence

An expansion of private investment is one of most important driving forces for growing economy. Increasing production capacity can be actuated by various factors like export stimulation and relocation of foreign investors’ manufacturing bases into the country. Besides, government measures provide benefits of investment in industrial sector to boost the country’s economy. These include tax incentives specified by the Board of Investment (BOI) such as import duty exemption on machinery and corporate income tax exemption. Government financial institutions also offer incentives by providing low interest loans to support revolving fund and capital for construction of factories and buildings, and for machinery purchase. As can be seen, investment in various industrial estates along with industrial property business sector are continuously expanding, including factory, building, and warehouse for rent.

The development of industrial zones, including industrial property business, gives rise to income, employment, production, and export that help boosting the country’s economy. However, these economic activities increase energy consumption and pollution problems in production process, transportation, and construction. These negatively affect environment in surrounding areas. If entrepreneurs lack awareness and do not impose proper pollution management measures for waste problem, air pollution, water pollution, etc., society and corporate will be influenced. It will deteriorate corporate image and sustainable growth in the future. Setting the coexistence for industrial estate to grow without causing too many impacts on environment is not less important than the economic growth.

To begin with, entrepreneurs should understand the overall image of business conduct and impose solutions to cope with pollution problems in industrial sector caused by manufacturing processes and services, from the import of raw materials and production to the delivery of goods. They should prioritize this to control pollutions such as air pollution, water pollution, etc., caused by different processes in industrial sector.

To control pollution in industrial factories and to run business sustainably, entrepreneurs should be aware of business conduct regarding responsibility on environment. They should apply effective and efficient measures. One of the best measures is to prevent and to reduce pollution from the sources. These include selection of environmental-friendly production materials and limiting waste from every step of production processes. This will help reduce manufacturing costs, lower toxic from production, increase number of products, earn more income for the business, cut costs for pollution treatment, and make more profits.

Industry and Environmental Issues

Applying ISO 14001 Environmental Management System is one of the respectable measures to tackle environmental problems to be at a proper level. This is a rigorous system setting out criteria and requirements to propel and control all activities in industrial sector, not to escalate negative consequences on environment or minimize existing pollution from manufacturers to an acceptable level. This system can be utilised in all kinds of business, from large-scale corporate in industrial zones to small-scale corporate like industrial property renter. Hence, business conduct will be of high quality and environmentally considerate.

Environmental Management in Industrial Sector

  1. Changes of raw materials in production:
    • Reduce or stop using raw materials that are contaminated and use other substitutable raw materials instead.
    • Use high quality, unprocessed raw materials to decrease dangerous chemicals from production processes.
  2. Changes of industrial activities:
    • Change technologies, methods, or mechanisms in production to increase productivity per hours while also reducing wastes creating from the process.
    • Reuse materials by harnessing wastes from one process in another process, where possible, or by improving the quality of such wastes and reuse them again as materials.
    • Advance work system of personnel to achieve a more effective performance and reduce any mistakes that could lead to wastes.
  3. Modification of products: develop products to avoid or reduce certain pollutions caused by manufacturing processes and use other substitutions. For example, change package from plastic bottle, which is not easily degraded, to other types of environmental-friendly packages such as paper box, etc.
Government Roles in Environmental Management

  1. Offer opportunity for factories to progress towards pollution control by prioritizing a reduction of pollutants generated from production, instead of generating pollutants first and eliminate them later. This include using raw materials that do not cause pollutions.
  2. Use preventive measures and provide guidance and assistance on pollution control, instead of inspection and punishment.
  3. Open for a brainstorming of academics from private sector, independent entities, and government sector to determine environmental management measures that are suitable for factories to reduce any possible pollutions.
If every sector—from factory entrepreneurs, government, and other related parties act responsibly and collectively to reduce pollution problems in production processes, an opportunity for the growth of business and economy will be more sustainable.

The 304 Industrial Park is one of major land developers for industry in Thailand, specialized in industrial park and industrial property, offering ready-built factory for rent and land for industrial factory construction. This is under the support of the Board of Investment (BOI). The 304 Industrial Park in Prachinburi and Chachoengsao was thoroughly designed with high quality materials to support the start-up of entrepreneurs’ businesses. It also offers infrastructures for properties and well-equipped utility system which are ready for service. A team of experts with high experience is also available to help every business in this industrial park to run more smoothly and sustainably in terms of economy and environment.