SCG Chemicals, one of the largest integrated petrochemical companies in Thailand, expects to increase green polymer products to 200,000 tonnes by 2025 under its circular economy scheme and go ahead with a plan to increase the proportion of high value-added products to 50% of its sales by 2030.
Green polymers refer to environmental-friendly chemical compounds that are used as raw materials for various industries.
The company sees a new business opportunity to increase their numbers, following demand growth in the packaging, healthcare, automotive and construction sectors.
Green polymer manufacturing is in line with SCG's strategy of chemical business for sustainability, said Tanawong Areeratchakul, president of SCG Chemicals.
The circular economy model is at the centre of this strategy as it promotes using upcycling to add value to unwanted materials, making them reusable.
Among green polymers are mono-material products SCG is developing to serve many industries, including food and beverage packaging and some consumer products, he said.
Mono-materials are made up of a single type of material, which makes it easier to break up.
They can be used to make various types of products and are gaining more interest from manufacturers in many countries because of their easier recycling, said Mr Tanawong.
He said SCG is working with business partners to produce packages made of mono-materials for the food industry. The packaging products can preserve food and can be reused due to their multi-layers.
Mono-material products have potential to be developed into high value-added products, a key revenue booster for SCG, said Mr Tanawong.
He said the ongoing Covid-19 vaccination in Thailand and many countries will also be a positive factor for SCG's chemical business.
More travel and an increase in tourist numbers will help drive demand for petroleum and plastic products, said Mr Tanawong.
He expects the company's revenue in 2021 will be also driven by its Map Ta Phut olefins plant in Rayong, following a recovery in the global petrochemical industry.
In the previous year, SCG Chemicals recorded a revenue of 146.87 billion baht.
