- First in the Asia Pacific
market to seek a holistic value chain solution for circular
plastic.
- 200KTA of plastic waste will be processed through both
advanced and mechanical recycling by 2030.
- Partnership expands 37-year long successful JV in
Thailand to enable circular
solutions in the region.
MIDLAND,
Mich., May 16, 2024 /PRNewswire/
-- Dow (NYSE: DOW) and SCG Chemicals or SCGC, today
announced the signing of a first-of-its kind memorandum of
understanding (MOU) circularity partnership in the Asia Pacific region to transform 200KTA of
plastic waste into circular products by 2030.
The partners intend to accelerate technology development in the
value chain to enable recycling through both mechanical recycling
(MR) and advanced recycling (AR) and convert a broader range of
plastic waste into high-value applications.
The initial phases are expected to include establishing a value
growth partnership for post-consumer recycled materials (PCR) with
current suppliers, and developing technology solutions in waste
sorting, MR and AR in Thailand.
The phases aim to build a robust materials ecosystem in South-east
Asia. This ecosystem will
ultimately enable better plastic waste collection, recycling and
management, and accelerate plastic circularity.
The parties anticipate that subsequent phases of the partnership
will include sourcing of plastic waste feedstocks in South-east
Asia including potential expansion
into other parts of the region including China, Korea, Japan, Taiwan, Australia, and New
Zealand.
"Asia has one of the largest
sources of convertible plastic waste. We want to disrupt how the
region currently handles waste and structure a new model that
values, sources, and transforms plastic waste. Our partnership with
SCGC will enable both companies to be key players in enabling
greater circularity in the region by leveraging our complementary
portfolio, research and development capabilities, and technology
licensing," said Bambang
Candra, APAC commercial vice president, Packaging &
Specialty Plastics, Dow. "Combined with our existing technical
expertise in producing high-performance resins, our customers will
also find value in the optimization of total cost in use,
availability and quality of plastic waste across the materials
ecosystem."
"This collaboration between SCGC and Dow marks a significant
milestone where two leading organizations in sustainable plastics
will join forces to drive and elevate the circular plastic
ecosystem in the Asia Pacific
region efficiently throughout the value chain," said Sakchai
Patiparnpreechavud, chief executive officer and president of
SCGC. "SCGC is ready to leverage its expertise in green
polymer and compound technology to enhance the performance of
plastic resins. This initiative aims to restore the value to used
plastics according to circular economy principles through
mechanical recycling and advanced recycling processes while
maintaining properties that satisfy customers' needs. This will
enhance business potential and support the growing demand for
high-quality PCR in the global market, from packaging to electrical
appliances, reflecting SCGC's Low Waste, Low Carbon approach
concretely."
"Dow Thailand is proud to begin a new chapter in our 57-year
journey in the country with a groundbreaking circular economy
partnership alongside our trusted partner, SCGC. Our 37 years of
shared commitment to excellence and sustainability make SCGC the
ideal partner to explore the new joint business opportunities, and
together, we aim to further enhance the value we deliver to our
customers and contribute to a sustainable future for the region,"
added Chatchai Luanpolcharoenchai, Dow Thailand
president.
The partnership supports Dow's "Transform the Waste" target
which aims to transform plastic waste and other forms of
alternative feedstock to commercialize 3 million metric tons of
circular and renewable solutions annually by 2030. The partnership
also addresses SCGC's sustainability goals under the "Low Waste,
Low Carbon" initiative, striving for carbon neutrality by 2050.
SCGC is also reducing greenhouse gas emissions by 20% and expanding
its production capacity for its green polymer portfolio with a
sales target of 1 million tons per year by 2030.
About Dow Thailand Group
Dow started its
business in Thailand in 1967, then
expanded through a joint venture with SCG in 1987 (in
2022, SCG Chemicals rebranded to
SCGC). At present, Dow Thailand Group consists of Dow's
wholly owned subsidiaries and SCGC-DOW joint ventures.
In addition, there is also a Solvay and Dow joint
venture in Thailand. Dow Thailand
Group is the largest manufacturing base for Dow in the Asia Pacific, with many manufacturing
facilities in Rayong province. Its strategic markets
in Thailand are packaging,
building and infrastructure, and mobility industries. More
information could be found
at https://th.dow.com/en-us or the Thai
Facebook www.facebook.com/DowThailandGroup/
About Dow
Dow (NYSE: DOW) is one of the world's
leading materials science companies, serving customers in
high-growth markets such as packaging, infrastructure, mobility and
consumer applications. Our global breadth, asset integration
and scale, focused innovation, leading business positions and
commitment to sustainability enable us to achieve profitable growth
and help deliver a sustainable future. We operate manufacturing
sites in 31 countries and employ
approximately 35,900 people. Dow delivered sales of
approximately $45 billion in 2023. References to Dow or
the Company mean Dow Inc. and its subsidiaries. Learn more about us
and our ambition to be the most innovative, customer-centric,
inclusive and sustainable materials science company in the world by
visiting www.dow.com.
About SCGC
SCG Chemicals or 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.
For further
information, please contact:
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Sarah Young
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Manatcha
Raksamata
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Dow
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SCGC
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+1.989.638.6871
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+66 64991
4156
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syoung3@dow.com
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manatcsa@scg.com
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Apiradee
Poopirom
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Dow
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+66 24917296 / +66
81802 6933
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papiradee@dow.com
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X: https://twitter.com/DowNewsroom
Facebook: https://www.facebook.com/dow/
LinkedIn: http://www.linkedin.com/company/dow-chemical
Instagram: http://instagram.com/dow_official
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SOURCE The Dow Chemical Company