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 Partners with Dow to Sustainably Tackle Plastic Waste by Developing Recycling and Renewable Solutions to Build the Circular Plastic Economy

SCG Partners with Dow to Sustainably Tackle Plastic Waste by Developing Recycling and Renewable Solutions to Build the Circular Plastic Economy

Date: 6 Sep 2019

BANGKOK – September 6, 2019 – Dow and SCG today signed a collaboration agreement to develop new complete recycling solutions to add value to plastic waste and prevent them from ending up in the environment. This agreement is an attempt to create a circular economy for plastic in Thailand. “Our industry and society as a whole must do a better job of capturing and reusing plastic by scaling investments in collection, waste management, recycling technologies and new end-markets,” said Jim Fitterling​, chief executive officer of Dow. “Dow continues to join forces with partners across the globe to more effectively reuse and recycle plastic waste. Working together with companies like SCG we can create a world where no plastic ends up in the environment.” The agreement was signed today upon the shared vision to close the loop of plastics waste management for the reduction of plastic leakage to the environment. The products anticipated from this collaboration are outputs of mechanical recycling, feedstock recycling as well as renewable feedstock which include but are not limited to recycled resin, recycled products made from plastic waste, petrochemical feedstocks from plastic waste and renewable plastic resins. “This collaboration not only represents our joint commitment in taking action to solve the problems through technology and making real changes but also provides us with new business opportunity, enhancing sustainability and bringing about practical solutions for recycling and upcycling of plastic waste in Thailand.” said Roongrote Rangsiyopash, President and CEO of SCG. “Circular economy is an economic opportunity as much as a solution to a pressing environmental issue,” said Jonathan Penrice, president of Dow in Asia Pacific. “We will build on Dow’s unique materials science and application knowledge and our 50-year experience in Thailand to develop solutions that maximize the value of plastics in the country.” This collaboration is aligned with the Thai government’s ambition to drastically increase the recycling rate of plastic waste in the country by 2027. Plastic waste in the environment is considered a critical environmental issue which Dow and SCG have innovated around in the past, such as developing certain technologies to incorporate materials derived from transformed plastic waste in polymer modified asphalt roads. This solution will add value to low or no value plastic waste such as multi-layer plastic packaging and contaminated plastic waste. Most businesses today operate a linear system, whereby natural resources are extracted, transformed into products, and eventually disposed of. A circular economy, on the other hand, is aimed to reuse, renew and recycle valuable resources thereby reducing environmental impact. SCG and Dow are founding members of the Alliance To End Plastic Waste, a not-for-profit organization, partnering with the finance community, government and civil society, including environmental and economic development NGOs to make the dream of a world without plastic waste a reality.
SCG's Collaboration with DMCR on Solving the Marine Waste Issue in 13 Pilot Provinces and Launching the Autonomous "SCG Smart Litter Trap 4.0" Prototype

SCG's Collaboration with DMCR on Solving the Marine Waste Issue in 13 Pilot Provinces and Launching the Autonomous "SCG Smart Litter Trap 4.0" Prototype

Date: 22 Aug 2019

Bangkok –August 22, 2019 Mr Cholanat Yanaranop, President of Chemicals Business, SCG delivered 20 SCG-DMCR Litter Traps to Dr Wijarn Simachaya, Permanent Secretary of the Ministry of Natural Resources and Environment, in order for the Department of Marine and Coastal Resources (DMCR) to install along with the DMCR’s floating litter traps at the river mouths and canals within 13 pilot provinces to reduce the amount of waste entering the seas and the installation is expected to collect 30 tons of wastes in 6 months. SCG also launched the "SCG Smart Litter Trap 4.0" Prototype with an autonomous system to collect wastes in the areas of still water or where the floating litter traps cannot reach. SCG-DMCR Litter Traps, developed in collaboration by Chemicals Business, SCG and the Department of Marine and Coastal Resources (DMCR) to be installed at the river mouths and canals, are designed with a 2-way entrance system using the efficient water flow and pressure principles to collect wastes and prevent the leak influenced by the tides. Chemicals Business, SCG and the DMCR have signed a memorandum of understanding for the "Development Project of Floating Litter Traps for Installing at the River Mouths and Canals” on the 24th of June, 2019, where SCG-DMCR Litter Traps have been installed in 5 areas around Rayong River mouths and canals in Samut Sakorn province leading to satisfactory results. Each of the initially installed SCG-DMCR Litter Traps is capable of collecting and containing 7.7 kilograms of river wastes per day and more SCG-DMCR Litter Traps are to be installed in 20 areas within 13 pilot provinces. Dr Wijarn Simachaya, Permanent Secretary of the Ministry of Natural Resources and Environment, said that in order to solve the ocean waste issue we need to implement waste management systematically on land and in the sea as the marine wastes greatly destroy marine resources and, therefore, it has become a major crisis in Thailand that must be solved systematically and completely. The collaboration between all sectors are extremely important, for instance, the collaboration between the Department of Marine and Coastal Resources (DMCR), Ministry of Natural Resources and Environment, and SCG to co-develop SCG-DMCR Litter Traps and to be the Chair of ASEAN for 2019 in solving the ASEAN’s marine waste issue, a significant part towards minimising the marine waste issue regionally and globally. Mr Jatuporn Burutpat, Director-General of the Department of Marine and Coastal Resources (DMCR), said that wastes mostly enter the seas via rivers and canals as Thailand has over 500 rivers and canals connected to the seas, according to the Department of Marine and Coastal Resources’ research. The SCG-DMCR Litter Traps will be installed in 20 areas within 13 seaside provinces, including Rayong, Chachoengsao, Samut Songkhram, Prachuap Khiri Khan, Phetchaburi, Surat Thani, Songkhla, Nakhon Si Thammarat, Pattani, Phang Nga, Phuket, Satun, and Ranong, and they are expected to reduce at least 30 tons of marine wastes in 6 months. Mr Cholanat Yanaranop, President of Chemicals Business, SCG, said that SCG is well aware of the marine waste issue and the collaboration between the DMCR and SCG is a vital beginning where the latest innovation has been brought in to solve the issue. The offered “SCG-DMCR Litter Traps” will be in the care of the DMCR and SCG will constantly follow up the results and research the management of sea-based wastes in order to create the added value, according to the circular economy concept, as well as to prevent them from re-entering the seas. In addition, SCG has utilised their robotics expertise to innovate and develop the "SCG Smart Litter Trap 4.0" Prototype to collect wastes in the still water or hard-to-reach areas by implementing the Machine Learning (ML) and Internet of Things (IoT) techniques to increase the efficiency of waste management and to facilitate the officers. The "SCG Smart Litter Trap 4.0" Prototype is also driven by solar power to save the energy and expected to be ready to use by the end of 2019.