SCGC’s Circular Plas and TOYO Sign Agreement on Joint Development of Post-Consumer Plastics into Recycled Feedstock for Petrochemicals

Bangkok - 21 June 2024 Circular Plas Company Limited (Circular Plas), led by Dr. Suracha Udomsak, Chairman of the Circular Plas Board and SCGC’s Chief Innovation Officer, and Toyo Engineering Corporation (TOYO), led by Mr. Yoshinari Miyazaki, Senior Executive Officer have entered into a joint development agreement (JDA) for the collaboration for the implementation of the capacity expansion and business opportunity for commercialization of the innovative design of equipment and engineering process relating to turning mixed post-consumer plastics into recycled feedstock for petrochemical businesses, owned by Circular Plas, an affiliate company of SCG Chemicals Public Company Limited (SCGC).

The memorandum of understanding (MOU) signed in January 2022 laid the groundwork for this ambitious project, focusing on improving processes to convert post-consumer plastics into a resource for petrochemical production. The subsequent expansion of demonstration plant capacities and the move towards commercialization are clear indicators of the project's success and potential.

The demonstration plant in Rayong province, Thailand, is a pioneering facility that has successfully converted post-consumer plastics into pyrolysis products, a raw material for petrochemical plants, thereby closing the loop in the plastic lifecycle. This achievement is not only a technical feat but also a milestone in sustainability, as evidenced by the ISCC certification.

Circular Plas's plastic-recycling technology is particularly noteworthy for its energy efficiency and environmental benefits. The innovative use of a proprietary multifunctional materials in the liquefaction process significantly reduces the temperature required for conversion, resulting in higher yields of light cracked oils and a reduced environmental footprint.

Moreover, TOYO's expertise in reactor design has been instrumental in adapting the technology to handle the variable nature of post-consumer plastics. Their efforts to enhance continuous-operation capabilities and increase capacity utilization underscore the technical prowess and forward-thinking approach of both TOYO and Circular Plas.

Currently, a new reactor jointly developed and designed between TOYO and Circular Plas is being prepared for installation in the demonstration plant. Circular Plas and TOYO expect to demonstrate this reactor system in early 2025, bringing a prospect of scaling up the demonstration plant to achieving commercialization target.

This partnership is poised to make a substantial impact on the petrochemical industry by offering a sustainable alternative to traditional feedstock sources. It also encourages the industry to adopt the circular economy approach, where waste is not an endpoint but a new beginning. The enthusiasm and dedication of TOYO and Circular Plas in pushing the boundaries of what is possible in recycling technology are truly commendable, concretely reflecting TOYO’s "Engineering for Sustainable Growth of the Global Community” mission and SCGC's sustainability goals under “Low Waste, Low Carbon” approach.

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About SCGC SCG Chemicals Public Company Limited (SCGC) is a leading integrated chemical player in ASEAN with strategic bases in Vietnam, Indonesia, and Thailand, offering a full range of petrochemical products ranging from upstream production of olefins to downstream production of 3 main plastics resins: polyethylene, polypropylene, and polyvinyl chloride. SCGC focuses on inventing "Innovation That's Real" to drive the ASEAN economy and elevate the quality of life in accordance with ESG and circular economy. SCGC develops technology and innovation toward HVAs in infrastructure, consumable packaging, automotive, health and well-being, and energy solutions, while ensuring sustainable environmental stewardship.

About TOYO Toyo Engineering Corporation (TOYO) has refined its proprietary technologies, mainly in the chemical fertilizer field cultivated by TOYO’s founder, ammonia and urea, and has expanded its business into a wide range of fields, including petrochemicals, petroleum and gas treatment, resource development and power generation. Since the construction of a plant oversea in the 1960s, we have cultivated new markets, nurtured overseas group companies, built a global network, and cooperated in and contributed to the implementation of the projects of customers around the world. TOYO will contribute to the realization of a carbon-neutral society and the rapid growth in the Southeast Asian market.