SCGC acquired a 70% stake in Sirplaste to boost manufacturing capacity and enter into the high quality post-consumer recycled resin (PCR) markets in Portugal and Europe under the SCGC Green Polymer brand
The move aligns with SCGC’s goal of becoming “Chemicals Business for Sustainability”. (Credit: Hans from Pixabay)
Petrochemical company SCG Chemicals (SCGC) has closed the acquisition of a majority stake in Portugal-based Sirplaste-Sociedade Industrial de Recuperados de Plástic (Sirplaste) to expand production capacity for recycled plastic in Europe.
SCGC acquired a 70% stake in Sirplaste to boost manufacturing capacity and enter into the high-quality post-consumer recycled resin (PCR) markets in Portugal and Europe under the SCGC Green Polymer brand.
The deal will also assist the company to support the recycled plastic industry to manufacture one million tonnes of SCGC Green Polymer per year by 2030.
SCGC bought 70% of Sirplaste’s common shares through SCG Chemicals Trading, a subsidiary of SCGC.
According to NexantECA, the acquisition is in response to the rising demand for recycled plastic in Europe, servicing the needs of multinational clients, with almost 3.7 million tonnes of this plastic-type utilised in 2021 and expected to expand at a pace of 10.6% annually over the next five years.
SCGC CEO and president Tanawong Areeratchakul said: “By leveraging on SCGC’s competitive advantages such as SMX proprietary technology, which enables plastic resins to have higher performance than standard plastic resins and will boost the efficiency of recycled plastics considerably.
“By combining their strengths, both companies will strengthen high-quality PCR and establish a dominant presence in European markets ahead of competitors.”
The acquisition of the stake in Sirplaste will strengthen SCGC’s business in high-quality PCR, one of the main products under SCGC Green Polymer.
Sirplaste CEO Ricardo Pereira said: “SCGC and Sirplaste follow similar business practices since we value resource efficiency. This collaboration will increase the potential of recycled plastics and enable them to reach a broader customer base.
“Sirplaste has long been committed to creating high-quality PCR for the world’s leading packaging manufacturers and investing in cutting-edge technologies.
“Additionally, it is certified by EuCertPlast, a European standard that verifies that raw material sources for recycled plastic resin manufacturing are developed from responsibly sourced post-consumer plastic.
“This approach will contribute to reducing plastic waste, creating new value for post-consumer plastic, and establishing true sustainability for business and the planet.”