ELMAS was awarded the prize of “Excellence in Circular Economy”

We are honoured that, following a rigorous and transparent assessment by a panel of environmental and sustainability experts, ELMAS SRL was awarded the prize of “Excellence in Circular Economy” for the second consecutive year at the Green Report Gala, which took place on Thursday, January 18, 2024, in the Throne Hall of the National Museum of Art of Romania.

Here is an excerpt from the report prepared by Green Report for this year’s Gala:

“Elmas SRL never ceases to surprise the market in which it operates. The jury included. Whereas last year it was the clear winner with a circular model for ‘life-span expansion’, this year the company joined the competition with a much more complex model: ‘selling the product as a service’.  

Elmas SRL is one of the first to change the approach to the purchase and use of elevators: switching from selling the elevator and maintenance services to providing complete services by leasing the elevator for long-term use by the beneficiaries. The manufactured/installed equipment remains the property of the manufacturer who ensures its maintenance, repairs, while replacements of parts are not charged extra to users, the parts/components replaced return in the production process and are reused for other interventions, thus reducing waste. 

The manufacturer of the elevator has control over the equipment produced and installed, which remains its property for the duration of the leasing, and bears full responsibility for its operation, manages the cost of maintenance, reparations, and spare pats. The manufacturer has a long-term schedule for maintenance activities and, by default, for necessary expenses and workforce. Users enjoy a flawless operation of the elevator and good transport conditions. The investor pays a monthly rent established in the rental agreement, without any other additional costs (except for damage resulting from vandalism), according to representatives of Elmas SRL.

Although the model is in the early stages (the launch of the first pilot project in Brașov for a 10-storey building), the jury has appreciated the enormous potential of the circular business model, the complexity and value of the benefits generated in the long term, taking into account:

• the creation of a service with a unique value proposition.

• the creation of recurring and predictable revenue streams from subscriptions to use the elevator.

• the efficient use of resources and waste prevention by delivering the product as a service.

• the reduction of operational costs, the increase in the ability to manage the service and the recovery of the residual value at the end of the life cycle.

• the increase in profitability as there are less investments in production.

The challenge of implementing this model resides in the fact that it usually requires o substantial change of the value proposition and additional areas of expertise. The model is attractive for companies that have high operational costs, the capacity to manage services and to recover the residual value of the product at the end of the life cycle. It is likely that the implementation of such a model will be more and more visible, especially in the area of heavy machinery.”

We would like to take this moment and congratulate the Green Report team for organising an exclusive event and all the winners at the Gala!