How recycling is strengthening supply chains in Paraguay

Sustainable supply chains are an important lever for connecting economic growth and environmental responsibility. German company the WEIG Group shows how this can succeed in practice. The company has been operating in Paraguay since 1978 with its subsidiary Grupo Yaguarete, where it produces solutions for paper, cardboard and plasterboard with a resource-saving approach. 

The initial situation in the country was persistently challenging – only around a quarter of waste was being recycled, large quantities were ending up in landfill, and recycling companies relied on expensive paper imports.

In 2017, a develoPPP project with the WEIG Group was launched to strengthen local supply chains in Paraguay. Investment was channelled into new collection points, awareness campaigns and a digital platform for more efficient management of recycling streams. As a result, the measures led to higher-quality waste paper, more stable structures and stronger local value creation. 

The develoPPP project laid the foundation for closer cooperation with DEG, and this developed into a long-term partnership. Subsequently, two DEG financing arrangements were put into place to drive the Group’s growth in Paraguay and to modernise the site and make it more energy efficient.  This cooperation is supported in various areas by DEG Impulse’s Business Support Services .