Federation of Thai Industries certifies two pilot projects of SCG Chemicals "Eco Factory", the First Ever in Thailand.

SCG Chemicals, Asia Pacific''s leading manufacturer of chemical products, is a pioneer in developing high value-added (HVA) plastic pellets for producing high-standard sterile medical equipment. We are dedicated to continuously strengthening entrepreneurs in HVA products. Our goal in delivering the best quality and results to our clients is a reflection of our principle of conducting business based on mutual success. Mr. Yuttana Jiamtragan, Managing Director of SCG Polyolefins (a subsidiary of SCG Chemicals), stated that under the vision of becoming Southeast Asia''s leader in sustainable business, SCG Chemicals aims to develop HVA products to distinguish and add a competitive edge to our products, and also to answer the needs of our clients and consumers by providing high-quality products under the SURE concept: S (Safety): Because consumer safety is our priority, the development of our products, production process and product functions are all done with regards to safety. For example, our high-quality plastic pellets (designed for producing medical equipment) are certified under international standards. SCG Chemicals'' future goal is to become the first among ASEAN members to develop a premium-grade plastic that is compatible with sterilization methods using Gamma radiation, ensuring consumers of the highest level of product safety. U (Users Come First):SCG Chemicals manufactures premium-grade plastic pellets for producing high-quality products that will be easy to process and convenient for users of the end product. R (Research and Development):Research and Development (R & D) for HVA products is an intensive process as it requires particular knowledge, skills and understanding at each and every stage of the process. In 2010 alone, SCG Chemicals invested 370 million Baht into R&D to innovative new work processes as well as products. E (Excellence): Quality excellence is what distinguishes SCG Chemicals'' HVA products from ordinary plastic pellets or other commodities. HVA products are a continuously growing business, which is evident in SCG Chemicals'' sales volume of HVA products. In 2009, the sales volume of HVA products reached 27% of total sales and SCG Chemicals plans to increase this number to 50% by 2012. SCG Chemicals'' main products include plastic pellets for flexible packaging, auto parts and medical devices. As Asia is transitioning into an aging society, there will inevitably be greater concerns for health, sanitation and issues relating to illness and diseases. This, along with the expansion and increasing popularity of health/medical tourism and beauty care businesses in Thailand, has contributed to the continuous growth of Thailand''s medical equipment industry. "Based on information from 2007, worldwide industrial use of plastics in the production of medical devices amounted to 3.2 million tons annually, out of which 473,000 tons (15%) were polypropylene," says Yuttana SCG Chemicals, as a leader in high-quality plastic pellets of various grades, is internationally accredited and is under the process of developing plastic pellets that can be sterilized with Gamma radiation, which can be use for producing syringes, syringe caps, sampling bottles, test tubes and other forms of clear/transparent medical equipment. With equally high quality as imported plastics but at lower production costs, Thailand will be able to reduce the level of dependency on foreign plastics. Additionally, Thailand''s healthcare industry will be able to save costs on equipment, thus allowing healthcare to become more affordable as well as enabling more people to receive healthcare. Moreover, since the production cost of SCG Chemicals'' materials is lower than of elsewhere, SCG Chemicals will be able to export to foreign markets, all having high demands for raw materials as production of medical equipment continues to grow. "Our goal is to be able to produce 35,000 tons of polypropylene, in domestic sales as well as exports, by 2015. With this level of production capacity we will be able to attain 30% of the market share in Thailand," says Yuttana. SCG Chemicals has exported plastic pellets to over 100 countries worldwide and has representative sales offices abroad in 8 different countries: Myanmar, Vietnam, the Philippines, Indonesia, China (Shanghai and Guangzhou), Japan and Dubai.

Mr. Cholanat Yanaranop,President of SCG Chemicals, Mr. Yuttana Jiamtragan, Managing Director of SCG Performance Chemicals Company Limited, Ms.Wanida Boonyalai Managing Director of Pun Pun Playground and Toys Company Limited - a manufacturer and supplier of children toys and playgrounds and SCG Foundation provided Q-Desks and Smile Land playground which are made from high-quality plastics worth 450,000 Baht to create imagination, learning and happiness among children at Ban Bungtakard School, Rayong province.

Mr. Dhirath Udhayanang, Managing Director of Nawaplastic Industries (Saraburi) Co.,Ltd, receives QCC Promoter Award for Top Management from Mr. Athit Wuttikaro, Deputy Permanent Secretary of Ministry of Industry at Thailand Quality Prize 2014 organized by Technology Promotion Association (Thailand – Japan) at the Bi-tech Exhibition and Convention Center, Bangna. The award is given to high-ranking executives dedicated promoting and driving QCC activities both within and beyond the organization. The award will be presented only when there are qualified recipients.

Mr. Apichai Chareonsuk, Managing Director of TPE, Mr. Nipat lumLertlucksanachai, Manager of the PE unit, Mr. Sunthorn Prosopchingchana, Manager of the HDPE 4 production unit at Thai Polyethylene Co.,Ltd (TPE), and Mr. Pirote Kanchanaplee, Production Manager and Acting Manager for the aromatics and public utilities division at Rayong Olefins Co.,Ltd (ROC), jointly received Green Industry Level 4 certificate from the Ministry of Industry. The event took place at the launch of the Green Industry project held by the Ministry of Industry to recognize entrepreneurs committed to conducting environmentally-friendly operations and developing continuously. Green Industry refers to industry committed to environmentally-friendly entrepreneurship to achieve sustainable development by focusing on continuous development and improvement in production process and environmental management along with concern for society both within and beyond the organization throughout the supply chain.

SCG Chemicals' business practices have been based on sustainable development. This is aimed at creating a balance between the economy, society and the environment so that we can all live together sustainably. SCG Chemicals is also striving to establish model eco factories by implementing eco innovations in factory processes and management. This includes everything from eco-friendly material selection to manufacturing processes and research and development to major maintenance activities or "Turnarounds". A turnaround is when factory machinery is shut down for major maintenance every 5-6 years. Maintenance and repairs are done on both small and large machinery as well as other parts of the factory to keep them in good working condition and able to carry out safe manufacturing. The maintenance at SCG Chemicals is conducted according to "Green Turnaround" guidelines, which takes impacts on communities and the environment into consideration. The highlight of this GreenTurnaround is the Enclosure Ground Flare. This innovation was aimed at improving the elimination of gasses from manufacturing processes. Factories generally use High Pressure Flare systems, which involves high-pressure steam. The loud noise of the high-pressure steam being pumped through pipes and the high heat from the flares can be a disturbance to nearby communities. However, the enclosure groundflare system uses differences in temperatures to move air, instead of using high-pressure steam, to draw-in air for combustion. This reduces noise while ensuring a more complete combustion with no smoke. The flare is contained in a combustion chamber, ensuring that no light and heat escapes into the atmosphere. Environmental management was also incorporated into this turnaround. For example, waste and garbage was clearly sorted into hazardous and non-hazardous categories for reuse and recycling, it was then transported to waste facilities which have been certified by the Department of Industrial Works, GPS devices were also installed on all vehicles carrying hazardous waste in order to track their locations. Furthermore, the plant tried to reduce waste by using biodegradable materials instead of waste that needs to be buried. Air, noise pollution and waste water was carefully controlled through theinstallation of an odor control room and scrubber to reduce the emission of Volatile Organic Compounds (VOCs), the installation of silencers, regulating maintenance times and treating waste water from all activities to meet standards before being released out of the plant, etc. At SCG Chemicals, importance is given to the environment and surrounding communities. Before every Green Turnaround, a Job Impact Community Analysis – JICA – is conducted. Representatives from environmental as well as occupational healthand safety organizations are invited on site periodically to inspect the precautions taken against any side effects possibly caused by the activities listed in the JICA to ensure that the works do not affect surrounding communities. Furthermore, communication and public relations campaigns involving the communities, government agencies and related parties are organized. These include informative posters, public announcements, SMS notifications, open house activities inviting community members to visit the plant and OMOC Knock Door activities in which management visit the surrounding communities to meet and greet residents and explain about the Green Turnaround. SCG Chemicals believes that industries, the environment and communities can co-exists if all parties remain open-minded to the advantages offered to society at large. Furthermore, if the management of such activities meets the standards for sustainable development, they will lead to improved quality of life, a better society and sustainable environment.

Mr. Yuttana Jiamtragan, Managing Director of SCG Performance Chemicals, Mr. Apichai Chareonsuk, Managing Director of Thai Polyethylene Co., Ltd. and team received Advanced Special Award for TPM Achievementfrom Japan Institute of Plant Maintenance (JIPM) at the awards ceremony TPM Ceremony Award 2013 held on March 12, 2014 at the Kyoto International Conference Centre in Kyoto, Japan