For more than seven years now, the Chemical Strategies Partnership (CSP), a non-profit US-based organization, has been working to promote the chemical management services (CMS) business model to manufacturing sectors across North America. This past year we have begun efforts to replicate these activities internationally, both in Asia and Europe. In Asia, CSP convened a workshop in Singapore in July 2002 and has been working with both industry and government representatives to launch a CMS initiative there. More recently, CSP has been active in Korea and is now prepared to launch a one-year initiative with support from the Korean government.

It is clear that with the rapid industrialization of Asia’s major urban centers and the pace at which many multinational corporations have established manufacturing operations in the Asian region, there is an urgent need to encourage and foster innovative and effective strategies for achieving sustainable economic development, improved environmental performance, and efficient productivity. Launching a CMS initiative in Korea offers a unique opportunity to position Korea as a leader in the region toward advancing sustainable solutions. Accelerating the utilization of CMS across Korean industries is one way to promote innovative and effective strategies for achieving environmental improvements through market-based, non-regulatory approaches.

CSP has teamed with the Korean Institute of Industrial Technology’s National Cleaner Production Center (KITECH) in Seoul, who will provide funds towards the design of an initiative to introduce CMS to Korean industries. KITECH has expressed a keen interest in introducing CMS to Korean industries and developing the knowledge and skills associated with the CMS business model. Thus, CSP will also work to develop the capacity and capability of a Korean-based partner to conduct activities similar to CSP’s with the purpose of promoting the model in the Korean context. CSP has signed a Memorandum of Understanding with the Nakdonggang Environmental Research Institute at Keimyung University (KMU) in Daegu to develop their long-term capacity for promoting CMS in Korea. KMU is an environmental research institute focused on applied research and providing technical assistance around cleaner production and “green” supply chain innovations within the automotive, textile and other industries in Korea.

CSP and our partners in Korea recognize that Korea provides an ideal setting for establishing a successful and replicable CMS initiative—the country boasts a strong manufacturing base as well as strong government and industry support for establishing best practices. Given its proximity to manufacturing centers in Taiwan, China and Japan, Korea could become a regional leader in promoting the CMS model as a supply chain best practice—a clear objective of our partners at KITECH.

CSP will work with KMU to conduct a one-year initiative that will include the following three activities:

1. Training and capacity building. CSP will work with KMU to develop the necessary skills and capabilities among staff to promote CMS in Korea. To stimulate demand for CMS services, CSP and KMU will develop materials and information on the benefits of CMS and disseminate them to Korean companies.
   
2. Demonstration project. CSP is planning to conduct a complete demonstration project with a Hyundai Motor Company plant facility in Korea. CSP will conduct a chemical cost baseline analysis and develop the business case for considering CMS. This project will also help to train the KMU team.
   
3. Planning and policy development. CSP will help design a plan for KMU and KITECH outlining activities and policy instruments to ensure the environmental potential of the CMS model and to accelerate its adoption in Korea.

Building on past experience and success, we consider this initiative in Korea particularly timely for several reasons. The CMS model embodies the product-to-service transition with chemical commodities. It has vast potential to promote sustainable production patterns across a wide array of manufacturing sectors through more focused management and sustainable consumption of chemicals in the production process. This project will draw on the larger trends in supply chain environmental management and what can be termed ‘servicizing’, and is particularly well timed with industry cleaner production and hazardous materials streamlining priorities. Furthermore, because this project is regionally based, project participants will have the benefit of more frequent informal contact and exchange of ideas, and will allow for replication across Korea and other regions in Asia.

CSP and our partners plan to launch the initiative in early May 2003. For further information on CSP’s Korean initiative please contact:

John D. Claussen
Project Director
Chemical Strategies Partnership
423 Washington Street, 4th Floor
San Francisco, CA 94111
415-421-3405 x11
john@chemicalstrategies.org