Pandora Opens Largest Jewelry Factory in Vietnam, Powered by Renewables
The $150 million facility aims to increase production by 50% while significantly reducing the company's carbon footprint.
Danish jewelry company Pandora has inaugurated its new $150 million fine jewelry crafting facility in Ho Chi Minh City, Vietnam. The company states this is the world's largest facility of its kind and is powered entirely by renewable electricity, utilizing 100% recycled gold and silver.
The expansion is designed to increase Pandora's manufacturing capacity by 50%, producing up to 60 million pieces of jewelry annually. The company projects this move will cut its carbon footprint by 17%.
Pandora's decision to expand its manufacturing base to Vietnam, after 37 years in Thailand, aims to enhance flexibility and supply chain resilience. The company cited Vietnam's skilled artisans, favorable business environment, and strong infrastructure as key factors in its choice.
The new facility employs 7,000 workers and is powered by solar panels on its rooftops and collaborations with local solar farms. This commitment to renewable energy aligns with Vietnam's goal of achieving net-zero emissions by 2050, though the country still relies heavily on coal.
Pandora transitioned to using 100% recycled silver and gold in August 2024. The recycled metals are sourced from various items, including medical equipment and cutlery, refined by suppliers in Europe and Asia. Experts note that while gold is highly recyclable, silver can tarnish and requires cleaning. The process of ensuring recycled content involves rigorous auditing to prevent the addition of newly mined materials.
According to Saleem H. Ali, who leads the program on critical minerals and inclusive energy transitions at the United Nations University, the shift to recycled gold and silver is a significant step. He highlighted the difficulty in tracing the origin of gold once it has been melted, particularly in regions with high demand like South Asia.
The company's sustainability officer, Mads Twomey-Madsen, stated that Pandora hopes its commitment to recycled metals will stimulate market demand. Pandora initially absorbed the premium cost of recycled materials and invested in building more reliable supply chains.
While jewelry manufacturing has a lower emissions intensity compared to sectors like aviation or cement, the industry-wide adoption of recycled gold and silver could prevent an estimated 58 million metric tons of carbon dioxide emissions annually, comparable to the total emissions of New York City. The challenge of recovering valuable metals from waste, such as the growing global e-waste stream, remains a significant environmental concern, often involving exposure to toxic substances during informal recycling processes.