SCG Chemicals (SCGC), a unit of Siam Cement Group, Thailand's largest cement maker and industrial conglomerate, plans to increase production of green polymers to serve growing global demand.
Production is to follow the circular economy concept, which involves upcycling to add value to unwanted materials, making them usable again.
"SCGC will continue to make green polymers like plastic beads by turning plastic waste into usable polymers through a purification process," said Sakchai Patiparnpreechavud, president and chief executive of SCGC.
The company aims to make up to 1 million tonnes of green polymers by 2030.
Demand for green polymers is high, especially in the packaging industry because eco-friendly packaging materials are needed for consumer products.
"Consumers in the global market want green products. Buyers in Europe are concerned about the environment issues," said Mr Sakchai.
SCGC also plans to develop new green products that are derived from high-performance polymers.
The company needs to focus on value-added products to ward off strong competition and help reduce global waste and consumption of natural resources, Mr Sakchai said.
In 2024, SCGC forged a partnership with Dow, a US-based chemical company, to push ahead with sustainable plastics. Both companies agreed to jointly drive and elevate the circular plastic ecosystem in Asia-Pacific throughout the value chain by transforming 200 kilotonnes per year, or 200,000 tonnes of plastic waste, into circular products by 2030.
The partnership will accelerate technological development in mechanical recycling and advanced recycling.
Mr Sakchai said he expects better business prospects in the petrochemical industry, which is facing a supply glut, in the second quarter of this year as US tariffs should help increase the petrochemical spread to US$400 per tonne, up from $330-350 per tonne, thanks to lower crude oil prices caused by US trade policies.
Petrochemical spread refers to the difference between the prices of chemical products and their costs, resembling a profit margin. Crude oil is a key raw material for the petrochemical industry and determines its production costs.