Dow and SCGC partnership to transform 200KTA of plastic waste into circular products

Dow and SCG Chemicals (SCGC), recently signed a first-of-its kind memorandum of understanding (MOU) circularity partnership in the Asia Pacific region to transform 200KTA of plastic waste into circular products by 2030.

The partners intend to accelerate technology development in the value chain to enable recycling through both mechanical recycling (MR) and advanced recycling (AR) and convert a broader range of plastic waste into high-value applications.

Senior Leaders witness signing of a first-of-its kind circularity partnership in the Asia Pacific region to create an effective platform for plastic recycling. From left to right from SCGC: Chatri Eamsobhana, chief commercial officer; Suracha Udomsak, chief innovation officer; Mongkol Hengrojanasophon, chief operations officer; Sakchai Patiparnpreechavud, chief executive officer and president; Tanawong Areeratchakul, advisor to the President & CEO, SCG. From left to right from Dow: Chatchai Luanpolcharoenchai, Thailand president; Bambang Candra, APAC commercial vice president, Packaging & Specialty Plastics; Ekkasit Lakkananithiphan, senior regional commercial director, Thailand; Kodak Xiao, senior business sustainability director, P&SP APAC; Libby Tavares, associate R&D/TS&D director

The initial phases are expected to include establishing a value growth partnership for post-consumer recycled materials (PCR) with current suppliers, and developing technology solutions in waste sorting, MR and AR in Thailand. The phases aim to build a robust materials ecosystem in South-east Asia. This ecosystem will ultimately enable better plastic waste collection, recycling and management, and accelerate plastic circularity.

The parties anticipate that subsequent phases of the partnership will include sourcing of plastic waste feedstocks in Southeast Asia including potential expansion into other parts of the regions including Mainland China, Korea, Japan, Taiwan, Australia, and New Zealand.

"Asia has one of the largest sources of convertible plastic waste. We want to disrupt how the region currently handles waste and structure a new model that values, sources, and transforms plastic waste. Our partnership with SCGC will enable both companies to be key players in enabling greater circularity in the region by leveraging our complementary portfolio, research and development capabilities, and technology licensing," said Bambang Candra, APAC commercial vice president, Packaging & Specialty Plastics, Dow. "Combined with our existing technical expertise in producing high-performance resins, our customers will also find value in the optimisation of total cost in use, availability and quality of plastic waste across the materials ecosystem."

"This collaboration between SCGC and Dow marks a significant milestone where two leading organisations in sustainable plastics will join forces to drive and elevate the circular plastic ecosystem in the Asia Pacific region efficiently throughout the value chain," said Sakchai Patiparnpreechavud, CEO and president of SCGC. "SCGC is ready to leverage its expertise in green polymer and compound technology to enhance the performance of plastic resins. This initiative aims to restore the value to used plastics according to circular economy principles through mechanical recycling and advanced recycling processes while maintaining properties that satisfy customers' needs. This will enhance business potential and support the growing demand for high-quality PCR in the global market, from packaging to electrical appliances, reflecting SCGC's Low Waste, Low Carbon approach concretely."

"Dow Thailand is proud to begin a new chapter in our 57-year journey in the country with a groundbreaking circular economy partnership alongside our trusted partner, SCGC. Our 37 years of shared commitment to excellence and sustainability make SCGC the ideal partner to explore the new joint business opportunities, and together, we aim to further enhance the value we deliver to our customers and contribute to a sustainable future for the region," added Chatchai Luanpolcharoenchai, President, Dow Thailand.

The partnership supports Dow's "Transform the Waste" target which aims to transform plastic waste and other forms of alternative feedstock to commercialise 3 million metric tons of circular and renewable solutions annually by 2030. The partnership also addresses SCGC's sustainability goals under the "Low Waste, Low Carbon" initiative, striving for carbon neutrality by 2050. SCGC is also reducing greenhouse gas emissions by 20% and expanding its production capacity for its green polymer portfolio with a sales target of 1 million tons per year by 2030.