SINGAPORE (ICIS)--Thailand’s SCG Chemicals plans to expand the capacity of its Portugal-based subsidiary Sirplaste by 25%, in response to strong demand for recycled plastics in Europe.
The recycling firm has an existing 36,000 tone/year capacity post-consumer recycled resins (PCR), of which 9,000 tonnes/year is recycled high-density polyethylene (R-HDPE).
SCG Chemicals recently completed acquisition of a 70% stake in Sirplaste, which sells its recycled plastics output in Europe.
The planned expansion will go hand in hand with upgrading to high-quality recycled production capacity to cater to a growing market in line with SCG Chemicals’ environmental goals, according to its parent firm - Thai conglomerate Siam Cement Group (SCG) - in a presentation to investors on Friday.
SCG Chemicals is looking at growing its environment-friendly or green polymer portfolio to 1m tonnes by 2030 and decarbonize current operations by 20% by 2030 from 2021 levels, with the goal of going carbon neutral by 2050.
The company has built Thailand’s first advanced recycling demonstration plant, and is “targeting creation of green feedstock and food-grade resins with virgin-like characteristics”, SCG said in the presentation.
The advanced recycling demo plant in Rayong province with about 4,000 tonnes/year capacity was launched in late January 2021.
The demo plant is expected “to develop and scale-up chemical recycling technologies that can turn post-use consumer plastic into recycled feedstock for virgin plastic resin production for petrochemical plants,” according to SCG Chemical’s website.
SCG Chemicals is currently seeking regulatory approval for a planned initial public offering (IPO) on the Stock Exchange of Thailand (SET).