Thailand Rises to World’s Second Spot in “Bioplastic Industry Hub,” Boosting Investments of 37 Billion THB
Thailand attains the 2nd global position as “Bioplastic Industry Hub,” sparking investments of 37 billion THB, reducing carbon emissions and sustainably fostering business resilience.
The Board of Investment (BOI), Thailand, reported progress in the bioplastics industry, one of the target industries under the BCG Model. Thanks to abundant raw material resources, a skilled workforce, and clear government support measures, both Thai and foreign investors have shown increasing interest in investing in the bioplastics industry in Thailand. This has led to Thailand’s rise to the current second position globally as a bioplastics industry hub.
Over the past five years, the BOI has promoted investments in 24 Bioplastic projects, with a total investment value exceeding 37,000 million THB. The success of these investments represents another policy milestone, as the government’s policies have encouraged both public and private sectors to embrace “The BCG Model Economy.” The BCG Model is set to be a pivotal foundation for attracting increased investments in the future.
SCG Chemicals Public Company Limited or SCGC, one of the largest integrated petrochemical companies in Thailand and an industry leader in Asia, aiming to grow business together with creating sustainable development, signed a joint venture (JV) agreement with Braskem, the leading global biopolymer producer in Brazil. This joint venture aims to produce bio-ethylene (Green-Ethylene) from agricultural based ethanol instead of fossil-based ethylene with capacity of 200KT annually. Green-Ethylene will be used for production of bio-based Polyethylene (Green-PE or Green-Polyethylene), which has low carbon footprint and is used in a variety of products, from packaging for food and beverage to personal and home care products, and houseware, to name a few. Green-Polyethylene will be commercialized under I’m green™ brand to meet megatrend of fast-growing global demand for environmentally friendly plastic especially Asia and Europe. The project will be located in Map Ta Phut, Rayong, Thailand.
Tanawong Areeratchakul, Chief Executive Officer and President of SCG Chemicals Public Company Limited or SCGC added: “SCGC aims to develop Green Innovation, for example, environmentally friendly polymer (Green Polymer) and innovation for Low Carbon solution through increasing Green Polymer product portfolio to reach 1 million tons annually by 2030 following ESG standards (Environmental, Social, and Governance).”
This joint venture and partnership between SCGC and Braskem for bio-ethylene production for Green Polymer is one of the essential strategies of SCGC to expand green business, satisfying the soaring demand from megatrend of environmentally friendly plastic which has robust growth rate especially in Asia and Europe. Thus, this joint venture aims to produce agriculture-derived bio-ethylene instead of fossil ethylene by world leading technology. The business of the joint venture is in accordance with the guidelines for the development of Bio-Circular-Green Economy: BCG model of Thailand.
Roberto Bischoff, CEO of Braskem said: “We are always looking for opportunities to expand the I’m greenTM bio-based PE offer to deliver circular low carbon alternatives to our customers to meet their increasing demand for sustainable solutions. This partnership with SCGC is aligned with our commitment to produce 1 million tons of green products by 2030, replacing fossil with renewable feedstock, and contributing to lowering the carbon footprint of our industry.”
I’m green™ Bio-based Plastic by Braskem-SCGC
I’m green™ bio-based polyethylene is a plastic made from a sustainably sourced renewable raw material (ethanol from agricultural sources) instead of traditional fossil feedstock (e.g., naphtha from oil). This promotes a significant reduction of the plastic’s carbon footprint which helps combat Climate Change. I’m green™ bio-based Polyethylene is used in a variety of products, from packaging for food and beverage to personal and home care products, toys, houseware, and plastic bags, to name a few. It can also be mechanically or advanced recycled just as regular polyethylene.
The combination of Braskem’s bio-based plastics know-how with SCGC’s expertise in PE production and strong position in the Asian market coupled with sustainability vision provides a solid business basis for the joint venture. The green ethylene plant will be located in Map Ta Phut, Rayong Thailand and will enable the production of the I’m green™ bio-based polyethylene that is the first of its kind outside of Brazil.
