The Business Model of a Circular Economy in the Innovation and Improvement of Metal Processing

Abstract

A circular economy (CE) appears to be a crucial tool enabling the sustainable use of natural resources, which is also essential for achieving the Sustainable Development Agenda by 2030. Compared to the traditional linear economy policy based on the “take-make-use-dispose” principle, the CE approach guided by the “designed to be remade” principle offers immense opportunities. Not only does it drastically reduce the need for primary resources, but it also revolutionizes the management of both resources and waste. The CE is significant for metal processing companies due to increased control over resources and waste reduction. Furthermore, it enables the efficient utilization of natural resources and minimizes the negative environmental impact, translating into the sustainable development of metallurgical activities. Additionally, recycling processes in metal processing can also have financial benefits by reducing the raw material procurement costs and lowering the waste disposal fees. The CE business model of the innovation and improvement of metal processing involves optimizing resource usage through continuous material processing and reuse. Companies develop advanced recycling technologies, implement efficient resource management strategies, and adopt service-oriented business models like leasing or part exchanging. These initiatives aim to increase value addition and minimize waste. Additionally, the ongoing investment in research and development facilitates the introduction of innovative processes and materials, leading to operational enhancement and environmental sustainability. The main aim of this study was to develop a CE business model for a metal processing company. This model allowed for identifying the key elements influencing the operations of companies in this industry in terms of the CE. Research was conducted through triangulation using various methods, such as focus group interviews, surveys, and individual in-depth interviews. This study was supplemented with an investment decision-making algorithm according to the CE and the CE business model canvas for metalworking enterprises, with a focus on those producing metal products subsequently covered with galvanic coating. The presented results also propose application in other SMEs within this industry sector.