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 Bags 2 NIA Awards at the Innovation Thailand Expo 2019

SCG Bags 2 NIA Awards at the Innovation Thailand Expo 2019

Date: 11 Oct 2019

BANGKOK – October 5, 2019Chemicals Business, SCG has won a Total Innovation Management Award in the Large Business Category and a National Innovation Award forSocial Contributions in the Private Sector Category for its “Thailand’s First Reinvented Toilet” or Zyclonic™, at the Innovation Thailand Expo 2019. Dr. Pan-arj Chairatana, Director of the National Innovation Agency (Public Organization) or NIA, presented the awards to the Chemicals Business, SCG, represented by Dr. Suracha Udomsak, Vice President – CTO – Innovation and Technology, Chemicals Business, SCG at Samyan Mitrtown, Bangkok. Dr. Suracha Udomsak, Vice President – CTO – Innovation and Technology at Chemicals Business, SCG, remarked that the company has been developing innovation, focusing on R&D for commercialization and open collaboration with leading research agencies, both domestic and international to create high value added products and services (HVAs) to cater to both in Thailand and overseas. In addition, by grounding its R&D projects in advanced research and putting in place clear research project management systems, the company has been able to develop new products, including. SCG™ HDPE H112PC, a black polyethylene compound developed with SCG’s patented technology that offers superior properties compared to regular PE100. Another example of such innovations is SMX™ Technology, which SCG has developed for the manufacturing of special-grade polyethylene resins with greater strength. Thanks to this enhanced property, the same product can be produced with less material while retaining the same strength. With this technology, SCG has created different grades of polyethylene resins that enhance product properties and can be used for different applications. In 2018, Chemicals Business, SCG applied for 180 patents in Thailand and overseas combined and set aside over THB 2.48 billion for research and development, an equivalent of 53 percent of SCG’s total research and development budget and 1.1 percent of the sale revenue of the Chemicals Business, SCG. Chemicals Business, SCG has also focused on developing innovation for society, particularly the quality of life, and has won a National Innovation Award for Social Contributions in the Private Sector Category for its “Thailand’s First Reinvented Toilet” or Zyclonic™, developed in collaboration with the Asian Institute of Technology (AIT). The collaborative project has given rise to a solution for global sanitation and sustainably elevated the level of sanitation for people across the world, especially those living in remote areas and public spaces that are in need to proper toilets and treatment systems. The distinguishing features of this innovation is the waste treatment system, which can readily disinfect waste and separate solid and liquid waste at the rate of 100%. As a result, the system releases no harmful pathogens and bacteria into the sewage system, rivers and canals, reducing the risk of communicable diseases. The treatment system also allows clean water to be recovered for reuse while transforming solid waste into useful soil conditioners for agricultural purposes. “For Thailand’s First Reinvented Toilet or Zyclonic ™, SCG is also working with world-class organizations in the sanitation industry to bring safe sanitation to about 40% of the world’s population (2.5 billion) still in need of adequate sanitation facilities,” added Dr. Suracha.
SCG'S RIL First Certified Top Tier “Eco-World Class” in Thailand, Emphasizing a Country Model for Enhancing Quality of Life and Improving Community and En

SCG'S RIL First Certified Top Tier “Eco-World Class” in Thailand, Emphasizing a Country Model for Enhancing Quality of Life and Improving Community and En

Date: 4 Oct 2019

BANGKOK - 23 September 2019RIL Industrial Estate of Chemicals Business, SCG, has been certified “Eco-World Class” from Industrial Estate Authority of Thailand (IEAT), Ministry of Industry. It is recognized as the first industrial park in Thailand to ever achieved the highest honorary status. Mr. Charoenchai Prathuangsuksri, Managing Director of Rayong Engineering & Plant Service Company Limited (REPCO), received a trophy and certification from Mr. Teerayut Wanitchang, Deputy Minister of Industry. Mr. Rongrit Kusonlakumbot, Director of Office of Joint-Management Industrial Estate of Map Ta Phut Complex, congratulated on the achievement at Eco Innovation Forum 2019. The development of RIL Industrial Estate under Chemicals Business, SCG, as a pilot eco-industrial park shows a firm commitment of SCG to sustainable development through its business's activities. RIL Industrial Estate has been certified"Eco-Champion"with the highest score for three consecutive years, and its continual development results in a status upgrade to"Eco-Excellence"in 2017. Also, in 2019, RIL Industrial Estate has been raised to the top tier“Eco-World Class,”which make it the first in Thailand to ever attained such highest status. The achievement demonstrates the company’s commitment to serving a country model for enhancing the quality of life and improving the community and environmental standards with the mission to develop Rayong province toward an Eco-Industrial Town