Chemicals Business, SCG, is one of the largest integrated petrochemical companies in Asia and a key industry leader. We manufacture and supply a full range of petrochemical products ranging from upstream monomers to downstream polymers including polyethylene, polypropylene, polyvinyl chloride, polystyrene and MMA.

SCG and Thailand; Path Towards Circular Economy

SCG and Thailand; Path Towards Circular Economy

Date: 17 Sep 2019

Why we should care about circular economy The worrying fact that natural resources and energy are dwindling from our planet indicates that the world economy may face the risk of shortages of raw materials in the near future. Moreover, pollution caused by manufacturing and consumption has affected the environment. With these pressing issues, the circular economy is now a solution that has caught the attention of international organizations, governments, and corporations. The philosophy of a circular economy is focused on making the most of resources throughout their life cycle, from planning and designing, manufacturing, and consumption, to waste management and reuse, all with the aim of promoting sustainability for the economy, society, and environment. At Chemicals Business, SCG, one of the largest integrated petrochemical companies in Thailand, we feel that it is our responsibility to be a part of the movement that embraces the circular economy and reduces plastic waste, while giving back to society, to ensure sustainability for future generations. We put a tremendous effort into product development and research programs, to develop materials and innovative business models that support the circular economy. We also work with various organizations in the government and private sectors in Thailand, with the goal of making the circular economy common practice in Thailand. SCG’s view of the circular economy Waste minimization assumes complete use and utilization of resources to make finished products, ensuring that as little waste as possible is generated during the life-cycle of the goods. The very first step begins at the product-design stage where (1) through clever design, added strength can be achieved to prolong the lifetime of the product; (2) minimal raw materials are processed and the amount of waste generated is reduced in the manufacturing process to achieve the required design and functionality; and (3) more, if not all, alternative or recycled material—which is more environmentally friendly—is used during manufacturing. The waste-littering and waste-management flow in the bottom part of Figure 1 involves many stakeholders including households, infrastructure providers, and various other parties. This has proved to be one of the most difficult aspects of the circular economy as well as one of the most critical. Proper sorting is almost a must in waste management; consumers should first sort their waste into appropriate categories. This is the cheapest and simplest way to ensure that the waste collected is of high quality, and that subsequent management of the waste can be done easily whether it is recycled, incinerated, or sanitarily landfilled. SCG uses innovation to support the circular economy We have recently introduced to the world, the higher-strength polyethylene (PE) resin breakthrough, SMX TechnologyTM, using internally developed “multimodal” technology. It was created by our formulators and designers resulting in a resin with improved mechanical properties in all aspects compared with existing HDPE. Since our new HDPE has better mechanical properties than existing HDPE, it directly contributes to plastic-waste reduction in two ways: 1. Reduced material use/increased durabilityWhen the new HDPE resin is used in place of existing HDPE resin, smaller amounts are required to achieve the same mechanical and chemical properties of finished goods. We have tested the new resin in blow-molding applications and found that it requires 10% less resin to create the finished product, in this case small HDPE bottles, with the same properties as those required by manufacturers. Upgrade and replacement When used in conjunction with post-consumer recycled (PCR) resin in certain applications, our researchers have confirmed that the ratio of PCR resin that can be mixed with virgin resin increases significantly. We found that up to 2.5 times more PCR resin can be mixed with our new HDPE resin to create a finished product with the same properties as before. Lastly, our research and development team is also developing the “CIERRATM” line of performance materials. As we are all aware, mixed materials are difficult to recycle, if not impossible. In the near future, we plan to replace metallized and aluminum material in barrier layers, providing solutions for print and seal layers for mono-materials, which will allow much better recyclability. 2. Leading the way to become a key driving force through collaboration with other partiesSCG, as a leading company in Thailand, realizes the importance of developing a circular economy, which is key to achieving the goals of business and of global sustainability. For decades, we have participated in and initiated many programs with the private and public sectors. Some of the highlights of our recent ventures are outlined below. SCG has been organizing the SD Symposium event since 2010 to promote awareness about the importance of sustainable development in various areas, as well as to encourage more practical solutions that will lead to sustainable growth for businesses, society, and the environment. Last year, we held this global forum in Thailand with the theme of “Circular Economy: The future we create” with more than 1,000 attendees. Participants included leading global companies as well as the government sector, civil society, SMEs, start-ups, and local communities. The aim of the event was to create awareness and foster understanding of the circular economy, to promote behavioral changes in manufacturing and consumption, and enhance collaboration among businesses, consumers, and the government in driving the nation toward a circular economy. This practice will eventually lead to business sustainability, while also raising the quality of life, and will result in global sustainability for many generations to come. Additionally, SCG always promotes the building of collaborative networks with many parties in Thailand and beyond, to create complete circular economies. Some recent examples include a technology partnership with Dow Thailand to use recycled plastics as an ingredient in asphalt, helping to reduce ocean and community waste while also enhancing efficiency, as well as reducing carbon emissions from building roads. To conclude, at SCG we believe that the circular economy will enable us to use sufficient resources to achieve the desired result of creating zero waste in production processes, consumption, and product end-of-life management. This certainly needs collaboration from all sides, and everyone needs to start building awareness to make it happen since it requires a fundamental redesign of business and our end-to-end value chains. The transition will be a monumental task for us all but if we persevere, we will succeed and put the economy back on a path of growth and sustainability. About SCG SCG was established in 1913 following a royal decree from His Majesty King Rama VI to produce cement, the main building material for infrastructure projects that greatly contributed to the progress of the country during that period. Since its founding, SCG has grown continuously and diversified into three core businesses: Cement-Building Materials, Chemicals, and Packaging. SCG employs 55,000 people with more than $15 billion in annual revenue from sales. It collaborates through a global R&D network with 38 universities, 33 research institutions, and 140 industry partners. The chemicals business is a 100% subsidiary of SCG with revenue accounting for half of the group total. It is one of the largest integrated petrochemical companies in Thailand and a key industry leader in Asia. It manufactures and offers a full portfolio of petrochemical products ranging from upstream production of olefins to downstream production of plastic resins—polyethylene, polypropylene, and polyvinyl chloride—including fabricated products such as film, pipe, and fittings, as well as acrylic sheet. It strives to offer solutions that reflect customers’ needs, by developing innovative and value-added products and services that offer the best quality while using fewer plastic materials, to promote the circular economy.

SCG and Mahidol Partner Up   to Open “SCG – MUSC Innovation Research Center”

SCG and Mahidol Partner Up to Open “SCG – MUSC Innovation Research Center”

Date: 7 Nov 2019

BANGKOK – November 7, 2019The Chemicals Business, SCG, in collaboration with the Department of Chemistry, Faculty of Science, Mahidol University, has established SCG-MUSC Innovation Research Center, an institute dedicated to the research and development of special innovative polymers from catalysts that enhance recyclability in response to the global demand for sustainable plastic packaging. Tanawong Areeratchakul, President of the Chemicals Business, SCG, stated that the company strives to innovate high value added (HVA) products and services by placing a continuous emphasis on research and development. In 2018, thanks to an R&D investment of over THB 2.4 billion, or 1.1% of its sales revenue, the company successfully expanded the proportion of its sales from HVAs to 53% and held over 1,200 patents, which was a 40% increase from the previous year. In addition, the company is also using core ideas of the circular economy as the guiding principles for its product design, prioritizing durability, recyclability, and high performance to meet global demand, especially for plastic packaging with greater recyclability. “In this partnership between SCG and the Department of Chemistry, Faculty of Science, Mahidol University to establish SCG-MUSC Innovation Research Center, we aim to develop special innovative polymers from catalysts that improve recyclability and material recoverability for applications such as mono-material packaging. This collaboration will enhance our potential and encourage an exchange of knowledge in innovation development, enabling the Chemicals Business to offer products and services that not only meet global demand promptly but also have specifications that are better aligned with customer needs.” Assoc. Prof. Sittiwat Lertsiri, Ph. D., Dean of Faculty of Science, Mahidol University, said that this public-private partnership has marked a significant leap forward in the national research community. In addition, through this collaboration, the two organizations will create a new generation of science and technology experts and innovators for the country through a joint research program, which not only shows how this R&D partnership is concretely realized but also synergizes the strengths of both partners. Students will also be given an opportunity to become involved in the R&D program and work alongside researchers in the center. Dr. Suracha Udomsak, Vice President - CTO – Innovation and Technology of the Chemicals Business, SCG, remarked, “The Chemicals Business and the Department of Chemistry, Faculty of Science, Mahidol University have had collaborative R&D initiatives since 2007. This year, we have established SCG-MUSC Innovation Research Center at Chemistry Building at Faculty of Science, Mahidol University. This center will accelerate and improve the efficiency of research by bringing together the foundational knowledge in chemistry and advanced chemical structure analytical implements of the academic sector and SCG’s experience and expertise in scaling up and commercialization to meet customer needs while also ensuring environmental responsibility.” This partnership between SCG and Mahidol University will prompt research institutes and other organizations in every sector across Thailand to recognize the significance of research and development guided by the principles of circular economy as well as encourage commercial research for sustainable and mutual development of both businesses and the world.
SCG Showcases Plastic Innovation for Sustainability at K2019 in Germany’s Dusseldorf

SCG Showcases Plastic Innovation for Sustainability at K2019 in Germany’s Dusseldorf

Date: 28 Oct 2019

DUSSELDORF, GERMANY – October 30, 2019 Chemicals Business, SCG, has aggressively accelerated its research and development to develop products fit for the Circular Economy principles, and unveiled special-grade plastic that can maximize the proportion of recyclable plastics while maintaining its excellent functional properties and minimizing plastic and resource usage. The approach aims to respond to the global market demand for greater sustainability and enhance a competitive edge for brands and customers. Recently, it has showcased a series of plastic innovations for sustainability at K2019, the world’s no.1 trade fair for plastics and rubber in Germany. Mr. Roongrote Rangsiyopash, President of CEO of SCG, disclosed that the development of High Value-Added (HVA) products and services is among core strategies of SCG’s business operations, which the research and development placed as a vital driving force. In 2018, SCG invested a total of 4,600 MB on R&D, where the Chemicals Business’ total R&D spending stood at 2,400 MB or 53% of SCG’s R&D expenditure, and 1.1% of total sales revenue of Chemicals Business. Currently, Chemicals Business employs a total of 690 R&D personnel and has registered a total of 1,200 patents, up 40% compared to the previous year. SCG has established various ways of R&D approaches, including closed innovation and open innovation e.g., in-depth collaboration with partners to develop innovation and R&D network with the world’s leading researchers and institutes such as the University of Oxford. The approach helped drive HVA sales to as high as 53% in 2018. For the product development built to fit Circular Economy principles, Chemicals Business has established a policy to coherently reducing the production of single-use plastic by cutting it from 46% in 2008 to 20% in 2020. At the same time, it has increased the proportion of durable plastic usage - one of the HVA products - by developing products based on the Circular Economy which not only be a solution to meet the domestic and international market demand and help improve competitive edge for brands and customers, but also mitigate adverse environmental impacts and reduce greenhouse gas emissions better compared to other materials. Mr. Tanawong Areeratchakul, President of Chemicals Business, SCG, added that Chemicals Business, SCG, has showcased plastic innovation for sustainability at K2019 in Germany, the world's largest trade fair for plastic and rubber, attended by over 3,300 exhibitors. The fair is a vital indicator of trends and directions of the plastic and rubber industry. Chemicals Business, SCG, presented the booth under the theme of"Passion for a Better World",which demonstrates the company's confidence in plastic innovation built upon the Circular Economy concept as sustainable solutions to the global market demand. This year’s highlights of Chemicals Business, SCG, are superior strength polyethylene resins by breakthrough SMXTM technology developed by SCG that provide material thickness reduction, minimizing material consumption while maintaining mechanical properties. The products offer a variety of applications such as SMX™ 551BU resin for the intermediate bulk container (IBC), SCG™ HDPE S111F for high impact film with enhanced toughness, and improved puncture resistance, and SCG™ HDPE SX002JA for lightweight closure with reduced material consumption yet higher strength. Besides, SCG’s SMXTM technology can be further applied to develop gas pipes, mining pipes, and pipes that can withstand high pressure. Another intriguing trend of this year’s presentation is the ambitious approach to achieve a fullyrecyclableprocess. At K2019, Chemicals Business, SCG, has introduced the innovative concept of packaging that can substitute the Flexible Packaging that consists of multiple non-recyclable film barriers. SCG has developed Mono-Material Packaging that is eco-friendly recyclability since it contains special additives CIERRA® - Barrier developed by SCG to replace metalized film with improved control of moisture and oxygen transfer. SCG also showcased the plastic resin solutions based on the Circular Economy which are made of the mixture of special-grade SCG plastic resins and the Post-Consumer Recycled Resin (PCR), offering recommended applications of consumer bags, personal and home care bottles and carbonated soft drink closures. In addition to the plastic innovation for sustainability built upon the Circular Economy, Chemicals Business, SCG, also provides customers, brand owners, and enthusiasts with innovative service solutions covering material selection & formulation, application development, design & engineer solutions and networking, as well as professional teams anticipating to develop products and seek solutions to meet customer’s diverse demand to ensure mutual and sustainable growth for the business and the world.