Eco-Structures Caribbean

Millions of plastic bottles are discarded into the environment annually, they are discarded into streams, gullies and landfills and have caused irreversible damage to the natural and built environment. Eco-Structures re-purposes these plastic bottles and integrate them as input substitutes into concrete solutions such as blocks, grasscrete and pavers among others. The Eco-Structures solutions will be stronger, lighter and provide superior insulation when compared to their conventional counterparts.

Plastic bottles feature heavily among the list of solid waste pollutants that infiltrate Jamaica's drains, gullies and coastal areas. This has contributed to the increasingly frequent flooding events which are attributed to blocked drains and gullies which has caused significant damage to property, infrastructure and even the loss of life in some instances.

While construction practices are currently trending towards higher energy efficiency and the use of renewable solutions. Eco-Structures will usher in a new era of recycled inputs into construction solutions.

Jamaica generates approximately 800,000 tonnes of residential waste annually and upwards of 60 million plastic bottles are used and disposed of annually by a population of just under 3 million people. Blocked drains and gullies in the country's urban centres cost billions of dollars in damage as a result of flooding annually. Also, coastal pollution has had a significant impact on the country's fisheries stock which in turn impacts the livelihood of fisher folk in these areas. Another consideration is the frequent fires at the islands landfills which causes air pollution and health challenges for residents  and businesses in close proximity to these landfills.

the aforementioned issues are a direct result of improper solid waste collection and disposal mechanisms and the insufficient efforts of recycling of plastic bottles and other solid waste.

The construction industry is a growing sector with estimated growth of the sector in 2018 being approximately 3%. According to the Planning Institute of Jamaica, the growth in the Building Construction component was supported by increased activities in both the residential and commercial areas. Additionally, the increase in the government and financial institutions support for housing which is a basic human necessity as well as the increase in the hotel accommodation requirement for tourism are expected to drive a continuous growth in demand over the next 3-5 years.

Having reviewed the construction landscape, particularly residential construction, its noted that in 2017, three thousand residential units (apartment complexes and individual houses) were built across the island. Notably the law requires that 1.25 spaces of parking is required per residential units constructed. This translates to 105,000 square metres or 1,130,210 square feet of required finished parking spaces required in the year 2017.

Simultaneously, this will result in a significant reduction in the volume of PET based products which enters the environment. This will result in reduced flooding caused by blocked drains and also improvements in our fisheries stock which is impacted by these products entering the coastal environment.

ECO-Structures will be Jamaica’s first green construction solutions company. Being mindful of the massive problem that Jamaica faces in the management of its solid waste, ECO-Structures Limited developed a simple solution - repurposing our country’s nonbiodegradable solid waste by integrating it in our building material. The development of our products and services is guided by our mission which is to provide construction material that meets the sustainable development needs of our communities. Our launch product line that will soon be the buzz of the construction industry is the green hardscape concrete blocks dubbed “ECO-Block”. 

The ECO-Block product line includes pavers, concrete cube molds, kerb walls, and other non-structural concrete outputs that are made with a special concrete mixture that combines traditional aggregates with non-biodegradable material called the “eco-aggregate”. It makes our product offerings lighter and stronger with the same structural characteristics as a standard traditional concrete hardscape. Based on the specifications and the fully automated manufacturing process for the ECO-Block product line, it will effectively compete in the non-structural construction solutions marketplace as it costs less than traditional hardscapes while meeting strength requirements. And importantly it provides a solution to a debilitating environmental issue – the disposal of plastic products.

The concrete block plays an important role in the construction industry in Jamaica and the wider Caribbean. Concrete blocks have been used in the creation of various buildings, retaining wall and other structures. In this modern era, various technologies have been introduced to promote sustainability and for the climate proofing of our buildings.

The recycling of PET plastic bottles will help to enhance our construction materials, primarily concrete energy and save landfill space. Recycled PET plastic bottles can be blended with aggregate, sand, cement, and water to create concrete at a reduced cost without sacrificing performance. Reusing PET plastics as concrete additives could also redirect old water and soda bottles, the bulk of which would otherwise end up in local landfills.

PET recycling ivolves the transformation of bottles through a process which is the most commonly employed physical process to recycle PET in Jamaica. It typically involves three stages that include separation, washing, and grinding of bottles/containers. With this process, PET flakes produced can be directly employed without the need of being reprocessed as pellets in the creation of products by injection or extrusion.

From our testing of blocks applied with PET, we have observed reduced volumes of mixture (aggregate and sand) which requires less labor because the mixture is lighter and also the cost of transportation can be reduced. Another feature for blocks applied with PET are good sound insulation and better shock absorption

Jamaica uses and disposes of almost one billion PET bottles annually, equivalent to 350 bottles per person each year. Currently, only 10 per cent of these bottles are captured for recycling and export. Most of the remaining 90 per cent is disposed of along with other household waste, costing the country millions of dollars in solid waste management each year. Ultimately, most of this waste ends up in the environment, it also degenerates our coastline and causes harm to our marine ecosystems, upon which our economy depends heavily. Eco-Structures Caribbean will rescue the environment from PET bottles. reduce the possibility of flooding caused by bottles and other debris clogging waterways. contribute to reducing drastically the random dumping of an estimated 600 million polythene terephthalate (PET) bottles each year. foster a culture of recycling, reusing and repurposing ‘garbage’.

Eco-Structures Caribbean is currently serving zero (0) people as the company is currently in a prototype stage and in the process of seeking seed funding to purchase equipment and commence operations.

Our forecast for the first year of operation, we anticipate tapping into a residential market that creates approximately 3000 units annually which are mandated by Planning and Development regulations to have a minimum of 1.25 parking spaces per unit. Combine this with the development of commercial, industrial, and institutional spaces that all require external hardscapes.

In year 1 the company intends to supply a minimum of 70,000 units of external hardscape products which will have a direct impact on a wide cross-section of 25,000 individuals who will vary from home/property owners and users/customers. By year 5, it is anticipated that this amount will increase to over 400,000 units annually that will have a direct impact on over 400,000 people annually.

Eco-Structures Caribbean is innovative through ongoing research and development. This will enable innovation in our products and new additions to our construction solution offerings that are more in keeping with environmentally responsible activities.

Offers consistent quality products and service by implementing and ensuring quality standards are maintained. Also ECO-Structures will seek registration with the Bureau of Standards of Jamaica and to be ISO 9001 certified which speaks to the implementation of Quality Management System requirements for all areas of the business. In light of the company’s environmental focus, it will seek to obtain ISO 14001 certification which speaks to its implementation of framework to manage the immediate and long-term environmental impacts of the company, its products, services and processes in keeping with ISO standards.

Is Socially Responsible - through its environmentally friendly operations and products as well as its treatment of the community within which it operates and the staff that it employs, Eco-Structures will be positioned as a market leader in its class with regard to its respect for its community and the world by extension. It will also seek to obtain Leadership in Energy and Environmental Design (LEED) Certification which is the industry standard for green buildings. LEED Certification Plague on a building is a sounding board for quality and achievement in green building. It fosters a good public image and recognition as a leader in the construction industry due to the complex requirements for the certification.

The company’s goal is to provide eco-friendly alternatives to traditional construction products, produce high quality products that meet or exceed regulatory standards, positively impact the communities we serve and the people we employ, to be process driven and service oriented and to safeguard returns for our shareholders. During the first year, the company will roll out its initial product offerings which are environmentally friendly external concrete outputs and hardscapes called ECO-Blocks. They offer the same structural stability as a traditional hardscape but at a lower cost and with a positive environmental impact. ECO-Blocks may be used in gardens, parks, driveways, parking lots and along road ways.

The company’s long term goals (5 years) include expanding to markets outside of Jamaica (entry to Haiti and Guyana in particular) and extending its company offerings to include:

• ECO-Asphalt - involves the melting of plastic for use in asphalt when paving roads. More energy efficient production and storage process and releases fewer harmful chemical emissions in production.
• Green Roof Technology - uses the natural functions of plants to filter water and treat air in urban and suburban landscapes (Wikipedia, 2016). Some ecological benefits include reduced energy consumption for cooling, stormwater retention, filtration of acid rain and air pollution.
• Leadership in Energy and Environmental Design (LEED) Certification for buildings - is a rating system devised by the United States Green Building Council (USGBC) to evaluate the environmental performance of a building and encourage market transformation towards sustainable design (Concrete Thinker - Portland Cement Association 2016).

The primary barrier that exists currently is that of securing financing for the purchase of capital equipment. Equipment that are key to our operations include a plastic granulator machine and an automated blockmaking machine both of which cannot be sourced locally. These machines have a combined cost in excess of USD $300,000 to source and import into the country.

Without the required capital investment for year 1, our five year outlook will be impacted.

Our plan to overcome this barrier is to source the required funds through a combination of personal loans to source and purchase used equipment. Another avenue being considered is the attracting of angel investors to provide the funds required and also provide business expertise and mentorship for the growth of the business.

The company intends to expand its footprint throughout Latin America and the Caribbean through the exportation and distribution of its products. Identification of markets where competition by alternative products is low.

Our company will conduct a significant amount of investigation into the new markets and use that information to help our company determine how we are going to run all aspects of our business in the new markets, from dealing with government regulations, to transport, logistics, pricing, and marketing. To beat the learning curve a bit, we will consider partnering with an established firm already operating in the country to handle some logistics and distribution functions.

3 of the company's 4 founders currently do work for the company.

The company is also advised by 3 advisers who independent members of its board

Eco-structures’ entry in the construction solutions market is currently being managed by two highly qualified professionals:

Mr. Kristoffer Henry is an engineering professional with over six (6) years in his field. He studied at the James Johnson School of Engineering at Howard University in Washington D.C where he gained his Bsc. in Civil Engineering (concentration in Structures/Geotechnical Engineering). His experience overseas aided in an understanding of the importance of playing a part in the development of his country. This led to his return to Jamaica in 2009, with the intention of using his skills to advance the country’s infrastructure development goals. With this in mind, he was engaged by the National Works Agency in 2011 where he obtained extensive experience in construction and development. He has since completed numerous major road infrastructure projects, participated in many developmental courses overseas and gained his professional engineering license. Recently he completed a MBA with the UWI Mona School of Business & Management.

Mr Mario Hylton has been an Urban Planner with the GoJ for the last 6 years. He has extensive experience in GIS mapping, physical and environmental planning and land use planning. He holds a BSc in Urban & Regional Planning from the University of Technology and is currently pursuing a MSc in Logistics & Supply Chain Management at the Mona School of Business & Management. He brings extensive knowledge of the built environment to the Eco-Structures team and has been integrally involved in the institutionalization of the company.

Total startup cost is estimated at $28.6 million with capital equipment representing 70% of cost (see table 1). The founders expect to finance this venture through private equity and proceeds from partnership with local investor (s). Gross revenues in year 1 is estimated at $70.4 million with total expenses of $36.6 million resulting in net profits of $2.7 million (4% net profit margin). Net profit margin is expected to increase progressively as the company strengthen its operation and expands its foot print in the construction sector. Total assets at the end of year 1 is estimated at $38.7 million with non-current assets totaling $12.9 million and owners’ equity $34.7 million. The detailed financial projections and cash flow estimates are outlined below. Relevant financial ratios are also outlined to show key liquidity positions and investor return margins. Based on the projected sales revenues and attendant costs, the company expects to break-even by fourth quarter year 1.

Eco-Structures Caribbean is applying to the Rethink Plastics challenge in an effort to overcome the barrier outlined above. With these barriers being overcome, the company will be in a position to have a triple effect on the Jamaican society and the wider region by reducing the amount of plastic bottles that end up in landfills and the marine environment; advancing infrastructure by engaging in construction in a sustainable and responsible manner; and improving lives by creating jobs and mitigating the impacts of pollution.

Massachusetts Institute of Technology

Caribbean Development Bank

Food and Agricultural Organisation of the UN