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Business opportunities can be created through constant product and services development in response to infinite consumer needs, which keep changing due to technological advances, evolving lifestyles, as well as climate change, which has caused a shift in energy trends and spurred greater eco-consciousness. While all of this presents a challenge, it also brings an opportunity for business growth.
SCG Chemicals Public Company Limited (SCGC) implements strategies to drive its business by developing high value-added (HVA) products and services to meet industrial needs that are related to megatrends and show signs of massive growth. SCGC has over 560 researchers and tech experts both in Thailand and overseas* as well as innovation networks and partnerships with various world-class organizations to help it accelerate the expansion and commercialization of its research. Thanks to an annual investment of over THB 1 billion in product research and development across 2019-2021, SCGC currently owns over 473 patents*. In 2021, its HVA sales accounted for 35.8% of its total sales. (* Data as of December 31, 2021)
SCGC’s HVA products and services are developed in anticipation of five emerging megatrends across industries expected to show massive growth in the future. These megatrends consist of increased packaging use due to the expansion of the food delivery service and the rise of eco-friendly packaging; greater focus on well-being and aging society; energy-saving vehicles; greater urbanization and expansion of infrastructure; and transition to green energy. All of these serve as the foundation for SCGC’s innovation development, which gives it HVA products to introduce to the market to grow its revenue and enhance the quality of life for all.
With rising demand for packaging and eco-consciousness among consumers, SCGC has been working actively to develop green polymers and has aimed to increase the annual sales to 1 million tons by 2030. SCGC’s green polymer solutions for resource efficiency comprise four core areas. (1) REDUCE: reducing resource consumption without compromising the quality with SMX™ Technology, an innovation for the production of high-quality plastic resin with enhanced strength; (2) RECYCLABLE: designing for recyclability with recyclable mono-material PE, PP, or PO packaging solutions, which allow flexible packaging to be efficiently recycled as opposed to multi-material packaging; (3) RECYCLE: recycling and enhancing used plastics using SCGC’s proprietary formulations to produce high-quality PCR resin and transforming hard-to-recycle plastics into feedstock for virgin plastic production using advanced recycling; and (4) RENEWABLE: developing biodegradable plastics and plastics made of renewable resources.
There has been growing demand for plastic automotive parts across the automotive industry thanks to their light weight and the ability to reduce fuel consumption. This is particularly true for electric vehicles, which are one of the emerging megatrends, as lightweight components can enhance performance. To this end, SCGC has been consistently working to develop lightweight automotive parts that not only have high impact strength and stiffness but also meet motor vehicle safety standards. The key challenge, however, lies in the forming process, especially of larger automotive parts, as the plastic needs to have greater flow to ensure the aesthetic quality of the finished products while also maintaining the other properties. As SCGC’s innovative plastic solutions have such outstanding qualities, they are in high demand among leading automakers.
Prompted by the COVID-19 pandemic and a transition to an aging society in various countries, people across the globe have grown more health-conscious, causing demand for healthcare products and services to spike. In response, SCGC has developed SCGC™ PP Medical resin for medical and pharmaceutical equipment, which complies with international standards and can undergo sterilization, as well as highly moldable and food-safe PVC for the production of medical devices, such as syringes, IV bags and tubes, and feeding tubes. In addition, SCGC has leveraged its material and engineering design expertise to co-develop practical medical innovations that answer real-world functional needs with its clients. These include a smart transfer wheelchair designed for greater ease of use, a smart mobile medication cart that helps ensure patient safety and reduce errors by medical professionals, and a 3D high-performance face mask for protection against viruses, bacteria, and PM 2.5 under the brand VAROGARD.
Rapid urbanization has prompted the acceleration of infrastructure and utility development in response to the growing number of people, and innovative plastic has been a popular choice of material for this purpose as it can be enhanced to have suitable properties for the task at hand and has the required durability for large-scale construction. Examples of SCGC’s plastic innovations for infrastructure include PE and PVC jackets for electrical wires and communication cables; fire-retardant cable jackets; and PE112 for large pipes for water delivery, gas transportation, and mining applications. SCGC is also the world’s first producer of a black PE112 compound (as indicated by a European patent in 2018) that has 10% higher resistance to pressure than the regular PE100 on the market and thus offers a superior alternative for infrastructural works.
As a result of climate change, people across the world have increasingly turned to alternative energy in their daily lives, and solar energy presents a highly practical option for this purpose, particularly in Thailand, because it can be produced all year round and solar panels can be installed both on the ground, on the rooftop, and on the water surface. SCGC is the first company in Thailand to successfully produce pontoons for solar panel installation in 2017 and has since expanded into the integrated floating solar farm business with SCGC Floating Solar Solutions, which not only have superior strength, durability, and buoyancy but also have a useful life of over 25 years thanks to UV resistance and do not pose hazards to marine ecosystems.
In addition to driving SCGC towards regional leadership in the integrated chemical business for sustainability, these HVA products and services also contribute to a better quality of life for all, nurture society and the environment, and serve business needs for growth.
