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Dow, SCG Chemicals sign MoU to transform 200,000 tpy of plastic waste into circular products

Dow and SCG Chemicals have signed of a first-of-its kind memorandum of understanding (MoU) circularity partnership in the Asia-Pacific region to transform 200,000 tpy 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 Southeast 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 VP, 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, CEO 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 metric MMtpy of circular and renewable solutions 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 MMtpy by 2030.

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