Chemicals Business, SCG, has expanded its circular economy ambitions toward “Chemicals Business for Sustainability” according to ESG principles. Recently, it signed the Share Purchase Agreement to purchase shares in Sirplaste, a leading plastic recycler in Portugal. The acquisition and creation of a new joint venture will enable Chemicals Business to further develop recycling technology for high-quality post-consumer recycled resin (PCR) and expand the distribution to other continents to meet the rising demand for PCR. The approach also aims at promoting resource efficiency and reducing global warming effects.
Under the share purchase transaction, SCG Chemicals, a subsidiary wholly owned by the Siam Cement PCL (BKK: SCC), through SCG Chemicals Trading (Singapore) Pte. Ltd. acquired 70% stake in Sirplaste-Sociedade Industrial de Recuperados de Plástico, S.A. (Sirplaste) on 27 April 2021. The transaction is expected to be completed by 2021. The existing shareholders will continue to hold 30% stake and co-manage Sirplaste with SCG Chemicals.
Tanawong Areeratchakul, President of Chemicals Business, SCG, revealed, “The signing of the share purchase agreement to acquire shares in Sirplaste is another significant step forward for Chemicals Business, SCG, in advancing circular economy pursuits. The joint venture between SCG and Sirplaste will strengthen our HVA portfolios to cater to the growing recycled resin demand, meeting the needs of brand owners worldwide and green-minded customers. It will also help to improve our technology development of high-quality PCR and expand our distribution to other continents. This creation of circular economy business models will not only help the company achieve meaningful business growth but also promote resource efficiency and reduce global warming effects.”
SCG will continue exploring possibilities on circular economy business in other aspects to follow the business direction “Chemicals Business for Sustainability” with the circular economy roadmap encompassing four main areas throughout the supply chain: 1) Design for recyclability, 2) Post-consumer recycled resin (PCR), 3) Advanced recycling process, and 4) Bioplastics, to achieve meaningful business growth and environmental stewardship in accordance with ESG.
Ricardo Pereira, CEO of Sirplaste, said, “Sirplaste and SCG share a common interest in resource maximization. The joint management and exchange of expertise will help speeding up the development of technologies and recycled resin innovations at a faster pace. The high-quality PCR produced by Sirplaste have been certified by EuCertPlast, the Europe-wide certification scheme that validates traceability of feedstock in the production of PCR. Customers, brand owners, and consumers can rest assured that they are provided with transparency of feedstock origin, which helps reduce waste and add value to post-use plastic.”
Sirplaste is the largest plastic recycling company in Portugal. It produces and sells products to domestic and foreign markets with an annual capacity of 36,000 tons per year.
Published on: May 13, 2021