Impact of Circular Economy on Waste Reduction, and Profitability of Rebar Factories — an Industrial Case Study
Hatami Delicheh, Mahyar (2025)
2025
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https://urn.fi/URN:NBN:fi:amk-202505079677
https://urn.fi/URN:NBN:fi:amk-202505079677
Tiivistelmä
This master's thesis investigates the impact of Circular Economy principles on waste reduction, resource efficiency, and profitability in rebar manufacturing, using a case study of Anahita Guilan Steel Company in Iran. The study aims to contribute to bridging the gap between theoretical Circular Economy frameworks and their practical applications in the steel industry in Iran.
A qualitative research approach was employed, utilizing an exploratory case study and a hermeneutic analysis of semi-structured interviews with key stakeholders, including managers and engineers. Thematic and comparative analysis methods were applied to assess the company’s performance before and after implementing Circular Economy strategies, particularly the establishment of a steel recycling plant.
The findings indicate that adopting Circular Economy principles significantly reduced production waste, with waste levels dropping from 10% to 2%. Additionally, the company experienced increased resource efficiency through optimized alloy composition and decreased reliance on virgin raw materials. From an economic perspective, the Circular Economy model led to cost savings by eliminating intermediary costs, reducing logistics expenses, and creating new revenue streams through by-product sales. However, challenges such as high initial investment, regulatory barriers, and market acceptance of recycled materials were identified as obstacles to wider adoption.
This study contributes to the growing body of knowledge on sustainable industrial practices and provides practical recommendations for policymakers and industry leaders. Future research is suggested to explore the long-term economic and environmental impacts of Circular Economy adoption in larger-scale steel manufacturing operations.
A qualitative research approach was employed, utilizing an exploratory case study and a hermeneutic analysis of semi-structured interviews with key stakeholders, including managers and engineers. Thematic and comparative analysis methods were applied to assess the company’s performance before and after implementing Circular Economy strategies, particularly the establishment of a steel recycling plant.
The findings indicate that adopting Circular Economy principles significantly reduced production waste, with waste levels dropping from 10% to 2%. Additionally, the company experienced increased resource efficiency through optimized alloy composition and decreased reliance on virgin raw materials. From an economic perspective, the Circular Economy model led to cost savings by eliminating intermediary costs, reducing logistics expenses, and creating new revenue streams through by-product sales. However, challenges such as high initial investment, regulatory barriers, and market acceptance of recycled materials were identified as obstacles to wider adoption.
This study contributes to the growing body of knowledge on sustainable industrial practices and provides practical recommendations for policymakers and industry leaders. Future research is suggested to explore the long-term economic and environmental impacts of Circular Economy adoption in larger-scale steel manufacturing operations.