SCG Chemicals plc (SCGC; Bangkok, Thailand) has recently invested in new technologies and machinery at Sirplaste in Portugal, following the acquisition of a 70% stake in Sirplaste-Sociedade Industrial de Recuperados de Plástico, S.A. (Sirplaste) through SCG Chemicals Trading (Singapore) PTE in April 2022. This investment is undertaken to expand the production capacity of recycled high-density polyethylene or High Quality Post-Consumer Recycled Resin (PCR) by 9,000 tons per year, or 25% of the current total production capacity. As a result, Sirplaste will have a total PCR production capacity of more than 45,000 tons per year by the second quarter of 2023. The goal is to address the ever-increasing market demand in Europe and Africa. This strengthens Portugal’s position as a leader in PCR and fits with SCGC’s corporate strategy of “Chemicals Business for Sustainability”.
Tanawong Areeratchakul, Chief Executive Officer and President of SCGC, said, “SCGC has a clear business strategy for the green polymer that fulfills the market’s need for sustainability. The decision to invest in new technologies and machinery at Sirplaste in Portugal at this time is to strengthen the High Quality Post-Consumer Recycled Resin or PCR business and expand the commercial potential to become more competitive in the global market.”
SCGC has been committed to promoting resource efficiency in line with circular economy principles to grow the total sales volume of the green polymer portfolio to one million tons annually by 2030. This also includes Post-Consumer Recycled Resin (PCR) products to support the growing customer demand, particularly among major global brands that have declared their commitments to sustainable business practices and promoted recycling and usage of PCR in packaging for products, especially in household and personal care segments. As a result, the demand for green packaging has the potential to rise in the long run, particularly in European markets.
Ricardo Pereira, CEO of Sirplaste, stated, “Our annual production capacity is currently 36,000 tons. This venture is an excellent starting point for increasing annual production capacity by 25%, or 45,000 tons. In the future, there are plans to constantly increase production capacity to support the expanding green packaging market in the long run. This serves to solidify Sirplaste’s commitment to European customers and reinforces our position as a leader in Portugal’s recycled plastics industry.”