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A S l A ’ S L E A D l N G m aga z l ne f o r t h e p las t l c s and r u b b e r l nd u s t r y
In this issue
Volume 38, No 270
publlshed slnce 1985
A S l A’ S L E A D l N G magaz l ne f o r the plastlcs and rubber lndustry
Features
9 Manufacturing Industry
Trends in the plastics manufacturing sector shed light on prevailing challenges that are being addressed through the implementation of strategies focused on digitalisation, AI and new product development
Publisher/Editor-in-Chief
12 Machinery News
Tel: +31 547 275005
Machine maker Coperion has developed a process solution for energy-efficient manufacturing of ABS blends, with the Coperion ZSK Mc18 twin-screw extruder playing a key role; the company has also launched its new recycling centre that caters to material handling and feeding; extrusion, compounding, pelletising, material post-processing and deodorisation
13 Environmental, Social and Governance (ESG)
Arthur Schavemaker Email: arthur@kenter.nl Associate Publisher/Executive Editor Tej Fernandez Tel: +6017 884 9102
ESG considerations are being touted as a transformative force for sustainability, focusing on interviews with Vietnamese chemical firm Stavian Chemical, and Singapore-based ESG stalwart, INCIT (International Centre for Industrial Transformation)
Email: tej@plasticsandrubberasia.com
17 Digitalisation
Email: gel@plasticsandrubberasia.com
This article by Raj Kaushal, Senior Business Development Manager, APAC at James Fisher AIS, explores how digitalising Indonesia’s oil/gas sector will allow benefits such as reducing asset downtime and improving worker productivity and on-site execution efficiency
19 Packaging
Highlights are the use of less materials made possible by ExxonMobil’s solutions in logistics/thermoformed packaging; South Korean packaging maker JaeKwang has entered the CPP flat films market with a five-layer line from machinery maker Reifenhäuser; while other suppliers tie up for sustainable seaweed/rice packaging in Japan/South Korea
21 Sustainability
In this interview with consulting firm EY Industries’ Atul Chandna, it can be seen that industries are moving towards supply chain resilience, sustainable practices, and technology advancements
Regulars 1 Industry News 5 Materials News
Sustainability is a reckoning force in the rubber sector, too, against the backdrop of curbing deforestation and significantly reducing the environmental footprint A S l A ’ S L E A D l N G m A G A z l N E f o r thE pLAStlcS AND rubbEr lNDuStry
Circulation Stephanie Yuen Email: stephanie@taramedia.com.my Layout/Design Prestige Trading Email: prestige9a@gmail.com Permits ISSN 1360-1245
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information contained in this publication is correct,
Is the goal of attaining sustainability mobility achievable? With the focus on electric vehicles and battery electric vehicles, the race is on to find the least possible emission emitters
DIGITAL
Angelica Buan
Whilst every effort is made to ensure that the
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On the Cover
trade readers in the plastics and rubber industry. Please
As we round up 2023, it can be seen that Sustainability has been a major influencer in both the plastics and rubber sectors. 2024 holds promise of further technological developments to push the environmental theme across
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INDUSTRY NEWS
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Technology provider Lummus Technology and biotechnology company RWDC Industries have tied up to expand manufacturing and global licensing of PHA resin. Lummus and RWDC are also cooperating on global PHA deployment initiatives. Lummus has also acquired rights to license and market ester grade acrylic acid technology, and light and heavy acrylates process technology from Air Liquide Engineering & Construction, thereby expanding its portfolio for propylene production. German specialty chemicals company Evonik and chemical/ mineral specialties group Lehvoss Group are partnering in industrial 3D printing. Lehvoss will develop its own 3D printing formulations under its Luvosint branding and include Evonik's polymer powder Infinam PA613 in its product portfolio. Japan’s Teijin Limited has sold its entire stake in GH Craft Co, an equity-method subsidiary of Teijin’s composites business in Japan, to TIP composite Co. Terms were not disclosed. US-based Berry Global Group is evaluating strategic alternatives
for its Health, Hygiene and Specialties segment (HH&S), which accounted for 22% of consolidated net sales for the packaging firm in fiscal 2022 but for the third quarter, saw a 7% decline in volumes due to lower demand. •
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US-based Tredegar Corporation is selling its flexible packaging films business Terphane to affiliates of Oben Group for net debt-free consideration of US$116 million. It has 500 employees with manufacturing sites located in Brazil and New York. Saudi Aramco and Jiangsu Eastern Shenghong Co (Eastern Shenghong) are discussing the possible acquisition by Aramco of a 10% strategic equity interest in Jiangsu Shenghong Petrochemical Industry Group Co (Shenghong Petrochemical), a wholly-owned subsidiary of Eastern Shenghong. Singapore-based private equity firm ShawKwei & Partners has invested US$34.3 million in US silicon battery materials manufacturer Group14. The latter manufactures an advanced silicon battery technology for lithium-ion batteries used in electric vehicles (EVs) and electronic products and devices.
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Ineos Enterprises has acquired Eramet Titanium & Iron (ETA) from Eramet for US$245 million. It consists of an ilmenite transformation plant in Norway producing titanium slag which is used in the pigments industry. Dutch distribution firm IMCD has acquired 100% shares of speciality distribution company Needfill Co in South Korea. Established in 1991, Needfill has partnerships with global suppliers and serves the paint, coatings, inks, textiles, electronics, and polymer markets. US chemicals firm Eastman Chemical Company is selling its Texas city operations to supplier of acetic acid Ineos Acetyls. It includes a 600,000tonne/year acetic acid plant and all associated third-party activities at the site.
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Additive manufacturing firm Stratasys has completed the sale of the Stratasys Direct urethane facilities located in Poway, California, to the Lamarjean Group.
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China's Sinopec has signed an equity agreement with Kazakh state-owned oil and gas firm KazMunayGas JSC for a 30% stake in a planned PE project in Kazakhstan. The
US$7.7 billion project has a design capacity of 1.25 million tonnes/ year. •
Italian chemical firm Versalis has acquired the entire share capital of Novamont, of which it already owned 36%, from Mater-Bi, a subsidiary of Investitori Associati II and NB Renaissance.
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Circular economy firm Cyclyx International, a joint venture between Agilyx and ExxonMobil, has sold 25% equity ownership to chemical firm LyondellBasell.
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Packaging specialist Alpla has taken over shares of Paboco from its joint venture partner Billerud. The Danish joint venture develops biobased packaging solutions made from pulp.
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Private equity firm One Equity Partners (OEP) has sold Walki Holding Oy, a panEuropean supplier of sustainable packaging solutions, to Oji Holdings Corporation, a Japanese paper products technology company.
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Mumbai-based recycler Dalmia Polypro Industries Private has received a commitment for an ECB loan of US$30 million from the US International Development Finance Corporation (DFC) to DECEMBER 2023
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Industry News
INDUSTRY NEWS fund a 171,000-tonnes/ year greenfield recycling facility in Nashik, Maharashtra. •
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Azul 3D, a 3D printing start-up, has closed a Series A transaction of US$15 million from existing and new investors, including from US materials firm DuPont, Beta Lab and GS Futures.
Israeli materials firm UBQ Materials has closed US$70 million funding, led by US investment firm Eden Global Partners as well as TPG Rise Climate, TPG’s Rise Fund, Battery Ventures, and M&G’s Catalyst. It will support investments such as UBQ’s industrial-scale 80,000 tonnes/year
UBQ resin facility in Netherlands, converting 104,600 tonnes/year of waste into a new raw material. •
Plant-based materials company Algenesis Corporation has raised US$5 million in funding led by First Bight Ventures, with Circulate Capital, and others.
Algenesis’ patented Soleic technology is said to be the world’s fully biodegradable and compostable bioPU made from plants and algae. •
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LyondellBasell is closing one of its two PP production units at its Brindisi location in Italy, due to poor outlook. It will close the 235,000 tonnes/ year-Spherizone unit by end of this year. As well, Jiangsu Fenghai High-Tech Materials has selected LyondellBasell’s Lupotech T highpressure PE technology for a new manufacturing plant in Lianyungang, Jiangsu Province, China. It will be employed for two EVA copolymer lines with a capacity of 200 kilotonnes/year. Ineos and Sinopec are in a 50:50 joint venture to build a 300 kilotonnes/year ABS plant in Tianjin, China. The plant, which is currently under construction by Sinopec, will be based on Ineos’s Terluran ABS technology and is planned to come on stream in 2025. DECEMBER 2023
Meanwhile, Sinopec and Sabic and have started up a new 260 kilotonnes/year PC plant at their 50-50 joint venture, Sinopec Sabic Tianjin Petrochemical Co (SSTPC), in China. Established in 2009, SSTPC is a mega-size petrochemical complex that already consists of nine world-scale production plants producing chemicals, PE and PP. •
Speciality catalysts maker Ecovyst Inc. is doubling its silica catalyst production at its facility in Kansas, US, by 2025. Silicasupported catalysts play a crucial role in the production of HDPE and LLDPE.
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Industrial firm PPG has completed an expansion of its powder coatings plant in Sumaré, Brazil. The US$2.7 million project increased the production capacity of the facility by 40%.
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US materials firm Dow has started operations of its new MDI distillation and prepolymers facility at its US site in Freeport, Texas. It replaces Dow's capacity in La Porte, Texas, and will enable the company to supply an additional 30% of product to customers.
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ExxonMobil has started up two new chemical production units at its Baytown, Texas, facility. The US$2 billion expansion is part of ExxonMobil’s plans to deliver products from its US Gulf Coast refining and chemical facilities. The new performance polymers line will produce 400,000 tonnes/year of Vistamaxx and Exactbranded polymer modifiers.
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French energy firm TotalEnergies is building a mechanical recycling unit for plastic waste at its Grandpuits site by 2026. It will produce
Japan’s Asahi Kasei has invested in US-based start-up NFW, a producer of non-petroleum-based leather alternative for car interiors. 30,000 tonnes/year of compounds containing up to 50% recycled plastic material. Meanwhile, TotalEnergies and Austria’s Borealis recently celebrated the start-up of their Baystar joint venture’s US1.4 billion, 625,000 tonnes/year Borstar PE unit, which doubles the current production capacity at Baystar’s site in Pasadena, Texas.
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Malaysia’s Petronas Chemicals Group (PCG) is to construct Asia’s largest advanced chemical recycling plant with a capacity of 33 kilotonnes/year. The plant will be located in Pengerang, Johor, and is targeted to be operational by 2026. PCG will utilise Plastic Energy’s technology.
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Turkish-Belgian chemical recycling company Synpet Technologies, with the backing of Swiss trading/manufacturing entity Kolmar Group that acquired a stake in the company in a
INDUSTRY NEWS first capital round, will construct a recycling plant at the Port of Antwerp. In the first phase of the EUR100 million project, it aims to process 180,000 tonnes/ year of wet-rejected plastic waste. By 2030, Synpet aims to have a processing capacity of 720,000 tonnes of plastic waste to produce circular naphtha. •
Covestro has commenced operations at its first mechanical recycling (MCR) compounding line for PCs at its integrated site in Shanghai, China. It will produce 25,000 tonnes/year of PCs and blends containing MCRs. Covestro aims to
supply 60,000 tonnes/ year of recycled-content PCs in the Asia Pacific region by 2026. As well, Covestro recently broke ground on its TPU production site in Zhuhai, China. To be built in three phases, it will have a maximum production capacity of 120,000 tonnes/year of TPU after the final phase of expansion, with completion of the first phase targeted for 2025 and final phase in 2033. Covestro has also expanded its production capacity for Platilon TPU films, as well as infrastructure and logistics, in Germany. This site of Epurex Films, a wholly owned subsidiary
of Covestro, houses R&D, application development and production for semifinished products. •
Carbios has been granted the building permit for what it says is the world's first PET biorecycling plant, allowing construction to start. The plant will be built in Longlaville, France, on a 13.7-ha site adjacent to the existing PET production plant of Thailandbased chemical firm Indorama Ventures, its strategic partner. The facility will be commissioned in 2025, processing up to 50,000 tonnes/year of post-consumer PET waste.
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Speciality chemicals firm Lubrizol and Grasim Industries Limited, a flagship company of the Aditya Birla Group, have broken ground on the first phase of a 100,000tonne CPVC resin plant in Vilayat, Gujarat, India. The facility located at the Grasim Industries’ site will be the largest single-site capacity for CPVC resin production globally, designed to meet rising CPVC demand for piping applications in India. It will utilise Lubrizol’s CPVC resin technology.
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Japan’s Sumitomo Chemical is constructing a pilot facility for producing propylene
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Industry News
INDUSTRY NEWS propylene directly from ethanol, which is attracting attention as a sustainable chemical raw material. Located at the Sodegaura site of its Chiba Works, it will be completed by 2025. •
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Belgian materials firm Solvay is starting up operations at its Taiwan-based Shinsol Advanced Chemicals joint venture plant for the production of electronic-grade H2O2, a chemical agent in wafer cleaning. Located at Tainan Technology Industry Park, the plant will have an initial capacity of 30,000 tonnes/year. Meanwhile, Solvay and Orbia’s Fluorinated Solutions are in a joint venture to create the largest PVDF production facility for battery materials in the North America region. Orbia and Solvay intend to use two production sites: one in Augusta, Georgia, for finished products and one in St. Gabriel, Louisiana, for raw material conversion to needed intermediates. Both plants are expected to be operational in 2026. Engineering firm Samsung Engineering has been appointed the contractor for the FEED contract of a 600,000 tonnes/year PDH plant and 500,000 tonnes/year PP plant at the Yanbu Industrial Complex in Medina Province, Saudi Arabia, by Alujain National Industrial Co. DECEMBER 2023
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French firm Arkema is doubling its organic peroxide production capacity at its Changshu site in China. The start-up of the EUR50 million expansion is expected in early 2025. Also in China, Arkema has begun production of Sartomer specialty UV/LED curing resins in Nansha. US materials firm DuPont has opened its new adhesives production facility in Zhangjiagang, East China. DuPont has also opened its new FFKM Kalrez manufacturing site in Delaware, US, to meet growing demand from the semiconductor and industrials sectors. US-based Ascend Elements is partnering with South Koreabased SK ecoplant and its e-waste recycling subsidiary, TES, to build a US$65 million lithiumion battery recycling facility in the US. The 100,000-sq-ft facility will disassemble and shred 24,000 tonnes/year of used EV batteries and gigafactory scrap. It is expected to start up by 2025. SK ecoplant will be the majority owner (64%) with Ascend Elements owning 25% and TES owning 11% of the new joint venture. South Korea's materials maker SKC is building a manufacturing plant for biodegradable plastics in Vietnam’s Hai Phong city. Set to be operational in 2025, the
facility will generate an output of 70,000 tonnes/year of PBAT. •
Germany-based Revalyu Resources has broken ground on its first PET recycling facility in the US, located at Gateway Regional Park in Statesboro. The US$200 million plant will have a capacity of 90,000 tonnes/year of postconsumer PET plastic and will be completed in Q3 2025.
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Swiss chemical firm Clariant has officially opened its new production facility for halogen-free flame retardants in Daya Bay, Guangdong. The CHF60 million investment into the plant’s first production line will provide local customers with access to Exolit OP flame retardants. A second CHF40 million line is under construction and expected to be onstream in 2024.
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Italian firm RadiciGroup has inaugurated its first industrial site owned in India dedicated to the manufacture of engineering polymers.
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Japanese chemical producer Tosoh is building a MDI splitter in south Vietnam's Ba Ria–Vung Tau province, targeting to begin by 2026. It will have a capacity of 100,000 tonnes/ year of monomeric and polymeric MDIs,
using crude MDI as a feedstock. •
Germany’s Röhm has expanded its presence for MMA and PMMA production in China. It also building another PMMA plant in Worms, Germany. China is the largest market for MMA and PMMA in the world.
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Envalior’s planned expansions at the Jiangyin and Changzhou production sites in China have been completed, with a new compounding line built at each location. Both facilities produce materials for the automotive, electrical and electronics markets, among other segments. Envalior is a joint venture of DSM Engineering Materials (DEM) and Lanxess High Performance Materials – under the ownership of global private equity firm Advent International and chemicals company Lanxess.
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Toray Advanced Materials Korea (TAK), the South Korean subsidiary of Japanese firm Toray Group, recently broke ground on its new facility for carbon fibre production in Gumi, South Korea. The new facility, which is TAK’s third unit for carbon fibre production, will increase manufacturing capacity in Korea by 3,300 tonnes to 8,000 tonnes/year.
With the ever increasing focus on environmental sustainability, the world faces a pressing need to tackle the ecological impact caused by extensive plastic use. Biomaterials are beginning to emerge as a promising solution to address this challenge, according to Angelica Buan. Too much of plastics The global food packaging market is on an upward trajectory, projected to soar from nearly US$1.2 trillion in 2023 to surpass US$1.4 trillion by 2028, as reported in Smithers’ The Future of Global Packaging to 2028. Asia commands the largest market share, accounting for US$470 billion of world packaging sales in 2023, followed by North America with US$270 billion and Western Europe with US$234 billion. The insatiable demand for plastics, continuous waste production, and ineffective management, are unsustainable
However, alongside its rapid growth, a challenge b e y o n d e c o n o m i c c o n d i t i o n s a n d s u p p l y ch a i n d i s r u p t i o n s i s e m e r g i n g i e . s u s t a i n a b i l i t y. T h e Organisation for Economic Cooperation and Development (OECD) report, Towards Eliminating P l a s t i c Po l l u t i o n b y 2 0 4 0 , u n d e r s c o r e s t h a t t h e c u rr e n t b u s i n e s s - a s - u s u a l s c e n a r i o — m a r k e d b y relentless plastics demand, waste generation, and mismanagement — is unsustainable. Without ambitious, coordinated, and global policy action, this trend will persist, perpetuating the increase in plastic waste. Over the last two decades, plastics production has more than doubled and is projected to surpass 1.2 billion tonnes/year by 2060. The report also foresees a proportional rise in plastics leaking into rivers and oceans, estimated to soar from 6 million tonnes in 2020 to over 9 million tonnes. This exponential increase in plastic usage and waste volume will significantly amplify adverse consequences for the environment, climate, and health.
Materials News
Biomaterials: wonder materials that are beyond plastics Despite anticipated improvements in waste collection and recycling, plastics use and waste are predicted to surge by over 50% above 2020 levels by 2040. While advances in waste management will reduce plastic leakage, an estimated 23 million tonnes is still expected to escape into the environment by 2040. Treaty to curb plastics consumption Targeting the elimination of plastic pollution, the High Ambition Coalition to End Plastic Pollution (HAC), consisting of 62 Ministers from various nations, has been formed to create policies and strategies for a circular plastics economy. It aims to eliminate plastic pollution by 2040 through an ambitious treaty that manages the entire life cycle of plastics, safeguarding human health and the environment. T h e H AC ’s g l o b a l s t r a t e g i c o b j e c t i v e s i n c l u d e restraining plastic consumption and production to sustainable levels; establishing a circular economy for plastics that safeguards the environment and human health; and achieving environmentally sound management and recycling of plastic waste.
The High Ambition Coalition to End Plastic Pollution, with 62 Ministers from various nations, aims to craft policies for a circular plastics economy and eliminate plastic pollution by 2040 DECEMBER 2023
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Materials News T h e g r o u p a i m s t o a ch i e v e s p e c i f i c g o a l s t h a t include banning harmful plastics, creating global sustainability standards, setting worldwide targets for sustainable plastic use, ensuring transparency in plastic production, improving commitments and controls over time, monitoring every stage of plastic use, and providing support for technical and financial assistance and assessments. Is US’s biomanufacturing agenda the right step? According to HAC, plastics use has skyrocketed in the last 30 years. A major part of this growth comes from making more single-use plastics for packaging and consumer goods, causing half of the plastic waste. As the negati ve impacts of single-use plastics become more evident, researchers are increasingly exploring alternatives such as biomaterials, derived from plants, bacteria, and fungi, offering promising substitutes for conventional plastics. T h e a d m i n i s t r a t i o n o f U S Pr e s i d e nt Joe Biden and Vice President Kamala Harris has highlighted biomaterials as part of an effort to enhance American b i o t e ch n o l o g y a n d g l o b a l m a n u f a c t u ring. As one of the leading consumers of plastics, the country’s Department of Defense's investment of US$1.2 billion in bioindustrial infrastructure is expected to bolster stronger supply chains and innovation.
In the US biomanufacturing strategy, scientists are creating eco-friendly alternatives derived from plants, algae, or microorganisms that easily decompose, reducing the impact of plastic waste
This strategy spans across various sectors such as plastics, fuels, medicines, addressing concerns related to health, climate change, energy, food security, and national safety. As part of the biomanufacturing strategy, scientists are developing eco-friendly alternati ves to regular plastics, utilising materials from plants, algae, or microorganisms. These biomaterials easily decompose in nature, lessening the impact of plastic waste.
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However, Greenpeace USA’s plastics project highlights a disparity. Despite the Biden administration taking initial steps to address plastic pollution, the project suggests that the plan lacks comprehensiveness. It implies that by concentrating on bioplastics and recycling, the administration may not be tackling the root cause. Instead, advocating for reducing the production of single-use plastics and advocating for a shift towards refillable and reusable systems are seen as more viable solutions. The reasoning is that solely relying on recycling and material substitution may not effectively resolve the primary concern of plastic pollution. Harnessing low environment impact of biomaterials Biomaterials, derived from natural sources such as plants, bacteria, and fungi, offer a compelling alternative to traditional plastics. Not only do these materials possess the necessary physical properties for effective packaging, but they also present a sustainable approach to addressing the plastic pollution crisis. Using seaweed extract to make biopolymers is often considered a better option for reducing our dependence on fossil fuel-based plastics. Seaweed is abundant, renewable, and biodegradable. The extraction and processing of seaweed into biopolymers typically have a lower environmental impact compared to the production of regular plastic. A u s t r a l i a ’s F l i n d e r s U n i v e r s i t y a n d G e r m a n biomaterials developer one • fıve have teamed up to pioneer an innovative biopolymer coating derived from seaweed extracts, offering a sustainable remedy for fastfood packaging waste. Flinders University researchers Peng Su, Chanaka Mudugamuwa, and Dr. Zhongfan Jia examined the biopolymer coating for potential applications in fast-food wrappers and other types of packaging
This eco-friendly substitute aims to supplant conventional fossil-based plastic coatings prevalent in grease-resistant fast-food packaging. Besides meeting standard packaging needs, the new prototype offers an environmentally circular solution. Claire Gusko, Co-Founder of one • fıve, underscores its ability to combat harmful plastic pollution while employing environmentally regenerative resources. Led by Zhongfan Jia and Peng Su, this initiative spotlights native South Australian seaweed, demonstrating a commitment to sustainable methods.
Materials News The conversion of seaweed extracts into functional biopolymer sheets seeks to replace traditional plastics, significantly reducing pollution in the global packaging industry. According to Flinders University and one • fıve, they are striving to upscale production, envisioning a tr a n s f o r m a t i v e s h i ft i n t h e p l a s t i c s i n dustry by decreasing reliance on highly polluted materials. Team up for food packaging made with renewable materials Meanwhile, Neste, a provider of renewable and circular f e e d s t o ck s o l u t i o n s f o r p o l y m e r s a n d ch e m i c a l s , has partnered with Japan’s Mitsui Chemicals and its subsidiary, Prime Polymer, to offer more sustainable food packaging for Co-op, a brand under the Japanese C o n s u m e r s C o - o p e ra t i ve U n i o n ( J C C U ) . I n i t i a l l y focusing on seaweed snack packaging, the collaboration introduces biobased raw materials, replacing fossilbased ones in the production process. Future plans include extending this approach to pack aging for additional products. Lilyana Budyanto, Head of Sustainable Partnerships APAC at Neste's Renewable Polymers and Chemicals business unit, emphasises the significance of this shift, acknowledging that even small changes, such as altering seaweed snack pack aging, can mak e a substantial environmental impact. Neste supplies renewable Neste RE, a polymer feedstock derived entirely from biobased materials. Mitsui Chemicals and Prime Polymer process this feedstock into renewable PP named Prasus, utilised for JCCU's food packaging. The resulting packaging is said to maintain the same quality and performance as its fossil-based counterpart, with differences lying in its reduced carbon footprint and the substitution of fossil materials during production.
The mass balancing method allocates the renewable material to the plastic packaging. Notably, the seaweed snack packaging is the first to receive Japanese Eco Mark certification as renewable plastics made via mass balancing. Cellulose-based food packaging to replace single-use plastic VTT Technical Research Centre of Finland has achieved groundbreaking results in a pilot-scale study utilising foam forming technology to produce highly extensible cellulose-based webs for rigid packaging applications. The formable cellulose-based webs exhibit up to 30% extensibility, a significant improvement compared to typical commercial boards with 3-6% extensibility. This advancement allows the creation of sustainable 3D pack aging solutions, offering an alternati ve to rigid plastic packages. The innovation supports the shift toward more environmentally friendly materials, particularly in the food packaging sector, providing a commercially viable and sustainable option.
VTT has also scaled up its bioplastic facility to produce cellulose films, which can serve as an alternative to conventional plastic for food packaging
Neste, Mitsui Chemicals, and Prime Polymer collaborated to offer more sustainable food packaging solutions for CO-OP, such as plastic packaging made with renewable materials for its seaweed snack
The foam-formed cellulose-based packaging aligns with the Single-use Plastics Directive and the European Commission's proposal for Packaging and Packaging Waste Regulation, offering an affordable and easy-toadopt alternative for brands aiming to reduce their reliance on single-use plastic. Kristian Salminen, Lead of Bio-based Products at VTT, highlights that VTT's collaboration with Gruppo X di X Gruppo and Lappeenranta-Lahti University of Technology (LUT), allowing seamless integration of the product into existing product packaging lines without process alterations, can significantly reduce costs. This also underscores the potential for widespread adoption by brands in the industry. DECEMBER 2023
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Materials News The development is part of a broader research program involving collaboration with 54 companies and the Regional Council of Central Finland to upscale alternatives for plastic products. Pr i o r t o t h i s , V T T i n i t i a t e d t h e p r o d u c t i o n o f sustainable packaging materials for the food industry. In March, it unveiled a EUR1.5 million investment in its cellulose films pilot facility, aimed at scaling up renewable cellulose alternatives' production methods. This material is intended to replace the commonly used plastic film in modern food packaging. The investment enables the facility to commence testing and developing processes for mass-producing these films, vital for the packaging industry. Transparent plastic films have long been crucial in global food packaging, safeguarding items like bread and candy, yet their multiple-layered composition makes recycling challenging, leading to their disposal in landfills post-use. Ali Harlin, Research Professor at VTT, emphasises the necessity of replacing PP film, a widely used polymer crucial for food preservation but a major contributor to environmental pollution. With this pilot facility, VTT says its aim is to expedite sustainable packaging solutions in the food sector, c r a ft i n g n ov e l m a t e r i a l s t h a t c a t e r t o c u s t o m e r s ’
requirements. The facility's focus is on developing easily recyclable cellulose-based films for food packaging and biobased barrier materials for various mediums like films, paper, and cardboard.
VTT Technical Research Centre of Finland achieved groundbreaking results in pilot-scale foam forming to produce highly flexible cellulose-based webs for rigid packaging
Manufacturing Industry
Trends in plastics manufacturing The prevailing challenges faced by plastics manufacturers are being addressed through the implementation of strategies focused on digitalisation and new product development. Furthermore, despite the lower-than-expected adoption, technologies like AI present are a silver lining, says Angelica Buan in this report. Exploring transformative potential of Industry 4.0/5.0 The plastics manufacturing industry is grappling with persistent challenges like potential economic uncertainty, a skilled labour gap, supply chain disruptions, and regulations for achieving net-zero emissions. To bolster production, competitiveness, and investments, the industry is poised to adopt strategies that target these obstacles head-on. Certainly, in 2024, technology will play a significant role, helping manufacturers tackle upcoming challenges while improving efficiency and business resilience. Smart factories, the integration of Artificial Intelligence (AI), and the development of new and sustainable materials are among the scenarios companies are exploring to elevate their operations and generate added value.
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Manufacturers, worldwide, including those in the ASEAN region, are increasingly exploring into digital technologies under the banner of Industry 4.0. This surge is propelled by advancements in storage and computing capabilities, resulting in widespread adoption across various industries. Insights from consultancy firm McKinsey’s survey conducted in the ASEAN region reflect a notable confidence in the transformative potential of Industry 4.0/5.0. The majority of respondents anticipate the emergence of new business models and improved performance through the adoption of these frameworks. Yet, within the region, there's a spectrum of adoption rates: some are limited adopters, some are lagging behind, and others are leading the charge in digital technology.
Manufacturing Industry The implementation of smart factory solutions enhances asset efficiency, labour productivity, product quality, and significantly reduces costs while prioritising safety and sustainability within manufacturing operations. Smart manufacturing encompasses various technologies and solutions, including AI. Augury, a provider of industrial AI solutions enhancing machine and process health, recently released its The State of Production Health 2023 report. This study surveyed over 500 US and Europe-based manufacturing executives, primarily from organisations representing consumer packaged goods, food and beverage, paper, building materials, cement, wood, mining, oil and gas, and chemical industries, with global revenues exceeding US$100 million. Globally, manufacturers, including those in the ASEAN region, are progressively delving into digital technologies within the framework of Industry 4.0
Against this backdrop, PRA queried Raimund Klein, CEO of Singapore-based International Centre for Industrial Transformation (INCIT), about how the Asian manufacturing sector is adapting to global trends such as Industry 4.0/5.0 and the Internet of Things (IoT). Klein emphasises that, both in ASEAN and globally, the implementation of Industry 4.0 across processes, technologies, and organisations is still in its early stages. On a global scale ranging from 0 to 5, the aggregated digital transformation data stands at "1.55," signifying the early phase of this transition, he explained. Klein also touched on Industry 5.0 and the encryption of physical systems, highlighting the necessity of establishing communication protocols among collaborative robots (cobots) for effective cooperation. Regarding IoT connectivity, he noted a deficiency in products, especially in supporting SMEs and mediumsized companies. Despite these businesses prioritising automation, Klein emphasises the strategic importance of measuring the impact of their technologies. Enabling IoT is crucial to drive productivity and visualise the real impact of these advancements, he said. Consequently, it is evident that ASEAN manufacturers need to catch up in seizing the vast opportunities presented by these technologies, avoiding the risk of overlooking potential benefits. Rise of smart manufacturing with AI According to audit consultancy Deloitte’s 2024 manufacturing industry outlook, the majority of surveyed manufacturing executives believe that smart factory solutions will drive competitiveness in the next five years. Deloitte’s research consistently demonstrates improvements in cost, throughput, quality, safety, and revenue growth through smart factory technologies, combining capabilities in IoT, cloud and edge computing, AI, and vision systems, among others.
Augury's report shows divided views: while tech adoption aids workforce upskilling, full Industry 4.0 implementation remains a goal for few global manufacturers
The report indicates a mixed sentiment regarding the manufacturing direction. While most executives believe that technology adoption will positively impact workforce upskilling efforts, the goal of implementing Industry 4.0 remains for only a fraction of manufacturers globally. External factors such as supply chain disruptions, workforce challenges, environmental crises, and impending regulations are accelerating the industry's need to adopt technology rapidly. Regarding AI investment, the report signals a surge in commitment, with only a small fraction planning to reduce AI spending in 2023 (3%), while a substantial majority (63%) plan to increase their AI budgets. However, despite widespread AI use, there's considerable variability in quantifying its impact, leaving leaders uncertain about its overall value. The report identifies upskilling the workforce as the primary objective for leveraging AI in 2023, followed by increasing capacity and streamlining supply chain visibility. In terms of AI applications, the report emphasises production health—integrating insights from machines, processes, and operations—as a key area, ranking closely behind supply chain optimisation. DECEMBER 2023
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Manufacturing Industry Augury's CEO/Co-Founder, Saar Yoskovitz, stresses the importance for industrial leaders to address existing challenges while viewing AI as a supportive tool for jobs. Strategising for scalable success and making substantial progress in sustainable production goals are crucial, leading to enhanced workforce skill sets, reduced environmental impacts, and improved financial performance for organisations embracing this approach, he adds. Circular and sustainable materials gaining priority The push for circular plastics stems from the urgent concern about plastics pollution, driven by the industry's massive growth. Forecasts predict a doubling of production by 2040, amplifying the perilous consequences for climate change, nature loss, and pollution. By 2050, plastic-related emissions might comprise 15% of allowable emissions, posing a threat to global warming goals. Annually, 11 million tonnes of plastic waste flows into oceans, with potential tripling by 2040. Adopting a circular economy model could yield significant benefits, reducing ocean-bound plastics by over 80%, curbing virgin plastic production by 55%, and saving governments US$70 billion by 2040. This transition could also cut greenhouse gas (GHG) emissions by 25% and generate 700,000 new jobs, primarily in the global south. These findings were pivotal in the End Plastic Pollution resolution adopted by the United Nations Environment Assembly (UNEA) in 2022. Circularity involves extending product use, promoting reuse, and enhancing plastic collection, sorting, and recycling. Leading agencies like the European Environment Agency (EUA) advocate reducing unnecessary packaging and embracing circular design principles. Emphasis is also placed on using renewable materials like recyclable biobased plastics, focusing on feedstocks that don't compete with food production. Manufacturers are exploring bioplastics and compostable alternatives as well as increasing the utilisation of recycled materials to meet environmental standards while balancing competitiveness and sustainability, though these options require significant initial investments. Ramping up recycled content in materials Up until this day, manufacturers have made bolder steps in ramping up the use of AI and other advanced technologies to increase recycled material content for products. Electrical/electronics company Hitachi Ltd, for example, has developed AI-driven technology to optimise plastic moulding conditions, enabling the expanded use of recycled plastic materials. This innovation leverages AI to stabilise the quality of moulded parts by controlling the moulding process using in-mould sensor data. This ensures consistent quality even with varying properties in recycled materials across
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different production lots. By deploying this technology, Hitachi says it aims to support a circular economy by reducing waste plastics through the widespread application of recycled materials. Recycled materials from various waste plastics often exhibit fluctuating properties between production lots due to contaminants. This variability has posed challenges for operators seeking to maintain quality when moulding new plastics from inconsistent recycled materials. Consequently, manufacturers tend to limit the use of recycled materials to those with consistent properties. Thus, Hitachi's breakthrough by using in-mould sensor data is able to successfully stabilises the quality of plastic moulded parts made from diverse recycled materials, without relying on manual adjustments by skilled operators. Hitachi's AI technology, featuring training and inverse analysis modes, is able to develop a predictive model for the quality of moulded parts by incorporating recycled material features and moulding conditions. Technology moves in recycling In recent years, the recycled plastic market has gained significant importance due to global efforts promoting recycling and the use of recycled materials. These expanding initiatives are fostering a surge in demand for recycled plastics. According to research firm Technavio, the market for recycled plastics is projected to grow by US$18.37 million tonnes between 2022 and 2027, with a CAGR of 4.75%. The Asia-Pacific region held the largest market share in 2022 and is expected to experience a notable 56% incremental growth. This growth is driven by increased use of recycled plastics in sectors such as automotive, textiles, and construction. Moreover, advancements in smart packaging technologies and the implementation of regulations promoting sustainable production methods across industries are further contributing to this expansion. Additionally, AI is emerging as a significant trend in the plastic waste management market. AI facilitates more efficient management of recycling and waste sorting plants. Through the use of smart recycling bins, waste can be monitored and sorted at the time of disposal, marking a significant advancement in waste management practices. In 2021, conglomerate Unilever and the Alibaba Group teamed up to develop an AI-enabled recycling system in China, targeting high-grade plastic packaging for quick reintroduction into the circular economy. The initiative, named Waste-Free World, aims to reduce plastic waste and foster a circular approach to packaging. Through this venture, Unilever plans to significantly reduce its virgin plastic use and increase the use of recycled plastic by 2025. The project installed 20 recycling machines equipped with advanced AI technology in Shanghai and Hangzhou. These machines automatically identify and sort plastic bottles when users scan a QR code using Alibaba's Alipay e-wallet service, simplifying the recycling process. Consumers receive Unilever coupons and green energy
Manufacturing Industry
Alibaba's Jet Jing and Unilever's Rohit Jawa jointly led a closed-loop recycling initiative that aims to foster a circular approach to packaging
points for their contributions, promoting sustainable practices. This recycling initiative not only supports Unilever's commitment to reducing plastic usage but also aligns with the Shanghai government's plans for a countrywide plastic packaging management system, aiming for a more circular economy. Unilever and Alibaba envision this collaboration as a crucial driver for China's circular economy in plastic packaging by 2025. Era of innovative plastics The global plastics industry is poised to explore sustainable solutions for both production and use. Ongoing innovations aim to render the sector ecofriendlier by introducing novel types of polymers tailored for sustainable purposes, complemented by advancements in environmental regulations.
UK research firm Smithers forecasts that the global highperformance plastics market will reach over US$245 billion by 2024, marking a small but swiftly growing segment, constituting less than 1% of total plastics consumption. Smithers' analysis outlines significant trends and factors influencing the high-performance plastics industry in the near future. Notably, there's an expected surge in demand for these plastics, commonly employed in non-essential durable goods and industrial applications. This growth, surpassing global GDP, is projected due to manufacturing shifts, particularly in the APAC region. Furthermore, the report stresses the importance of integrating high-performance plastics in new applications right from the product design phase. Additionally, there's a heightened emphasis on sustainability and recycling, underscoring the need to manage the life cycle of these plastics to address environmental concerns.
Smithers predicts that the high-performance plastics market globally will exceed $245 billion by 2024, representing a small yet rapidly expanding sector, accounting for less than 1% of total plastics use
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Machinery News Coperion energy-efficient process for ABS blends licensed by Zhejiang Zonepic German compounding/extrusion machinery maker Coperion has developed a process solution for particularly energy-efficient manufacturing of acrylonitrile-butadiene-styrene copolymer (ABS) blends, with the Coperion ZSK Mc18 twin-screw extruder playing a key central role. Thanks to short raw material residence time in the ZSK extruder and gentle product handling, Coperion’s process solution achieves an extraordinarily high ABS blend product quality. ABS is a thermoplastic engineering plastic which combines numerous positive mechanical properties and chemical stability, which make it ideal for multiple uses in the electric and automotive industries. Technology licensing and engineering company Zhejiang Zonepic Petrochemical Technology Co., located in Hangzhou City, Zhejiang Province, China, is a licensor for the emulsion grafting-bulk polymerisation ABS blend method that allows for the production of ABS blends in general grade, food grade, flame retardant grade and electroplating grade. For this solution the company has permitted to design several large installations with multiple ZSK 133 Mc18 twin-screw extruders. Two systems have recently started production: one plant is at Lihuayi Lijin Refining & Chemical Co. with an output of 200 kilotonnes/year, and the other at Zhejiang Petroleum & Chemical Co. with an output of 400 kilotonnes/year.
Coperion’s recycling centre is up and running
ZSK extruders for maximum energy-efficiency ABS blends consist of synthetic rubber polymers HRG and SAN (styrene-acrylonitrile). Coperion has developed a particularly energy-efficient process solution for manufacturing ABS blends.
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Chinese Licensor Zhejiang Zonepic Petrochemical has commissioned ABS blend manufacturing plants using Coperion ZSK extruders
The ABS emulsion emerges wet from a reactor following its manufacture. In Coperion’s solution, it passes through a screw press before the HRG – still damp – is introduced downstream via a Coperion ZS-B side feeder into the process section of a ZSK extruder. The energy-intensive thermal pre-drying of the ABS is thus eliminated. Using gravimetric Coperion K-Tron feeders, SAN and additives are likewise introduced into the ZSK extruder. SAN, additives and HRG are intensively and homogeneously mixed in the ZSK process section, all the while handled very gently, so that the product does not yellow, nor does the polymer break down. In comparison to conventional manufacturing processes, Coperion’s solution operates with markedly lower energy consumption. Moreover, the portion of residual monomers is reduced to an absolute minimum. Frank Lechner, General Manager of Process Technology and Research & Development at Coperion, is convinced of the importance of Coperion’s development: “We’re proud to see how both of these large installations from Zhejiang Zonepic Petrochemical Technology Co have successfully taken over production for ABS blends. These machines are already proving on a daily basis how energy-efficient their operation is. At the same time, they deliver a constant, extremely high product quality that underscores how our innovative process development precisely meets our customers’ requirements. Even our newest development, providing a way to further reduce ABS production’s energy consumption, has already met with great interest – as has our solution for manufacturing ABS blends for direct contact with food products.” New Coperion test centre for optimising plastics recycling In other news, Coperion has successfully launched operation of its new Recycling Innovation Centre.
Machinery News In this high-tech test centre for plastics recycling applications, every recycling process step – from material handling and feeding to extrusion, compounding, pelletising, material post-processing and deodorisation – can be tested. Extensively equipped recycling systems are available that can be modified in myriad ways, depending upon the specific requirements of the recyclate to be produced. Coperion says its new centre is the perfect complement to the Herbold Meckesheim Test Centre, where customers can simulate and test the mechanical pretreatment of plastic, allowing customers to experience first-hand the significant reduction in organic impurities by using Herbold Meckesheim’s hot washing system, as an example. Herbold Meckesheim has been part of Coperion’s Recycling Business Unit since 2022. The recycling centre is located in Niederbiegen near Weingarten, Germany, directly adjacent to Coperion’s existing test centre for Bulk Solids Handling. Along with proprietary R&D projects, first tests have been performed for customers, in which new, sustainable products and recycling processes have been developed and tested. Coperion says its process engineers can modify the available recycling technologies such that the recompounds are manufactured with the highest
efficiency possible while maintaining a consistently high level of product quality. The results achieved can then be scaled up to production level thanks to the constant base parameters of all Coperion technologies. Every new technological development from Coperion that optimises plastics recycling has been integrated into the recycling centre’s machinery and can be tested there. For example, in the area of material conveying, the energy-efficient Fluidlift ecodry flash drying process is available – moisture remaining in recycling grinds following the washing process is reduced during material transportation. Moreover, the Mix-a-Lot bulk solid mixer, which can create premixes including flakes or powders, and the innovative buffer hopper solution using the ARW discharge agitator as well as the Smart Weigh Belt (SWB) feeder are integrated in the system. Coperion has also installed the ZS-B MEGAfeed side feeder, especially for extruding and compounding plastic recyclates with bulk densities starting as low as 20 kg/cu m at high throughputs. With its innovative design, the ZS-B MEGAfeed handles flakes and fibres such that they can be fed into a ZSK twin-screw extruder in large quantities without energy-intensive compacting.
Environmental, Social and Governance (ESG)
Sustainability turns a new leaf with ESG practices Beyond merely being a buzzword, ESG considerations are being touted as a transformative force enabling businesses to pivot successfully toward sustainability, reports Angelica Buan in this article, focusing on interviews with Vietnamese chemical firm Stavian Chemical, and Singapore-based ESG stalwart, INCIT (International Centre for Industrial Transformation).
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usinesses are increasingly recognising the importance of operating with a broader purpose, acknowledging their impact on the environment, society, and corporate governance. This recognition has propelled the Environmental, Social, and Governance (ESG) framework to the forefront, assessing companies across three key areas: environmental responsibility, social impact, and governance practices. When considering whether or not to invest in a firm, investors using an ESG framework analyse its ESG features. These investors, who expect companies they hold to commit strongly to ESG criteria and
reporting, perform their own ESG research on firms or rely on third-party ESG evaluations. Evidently, there is a pressing need to address ESG concerns in supply chains. According to accounting firm PwC’s report titled "Asia Pacific’s Time Responding to the New Reality," published in 2022, regulatory changes and identifying supplier risks are major ESG concerns. Yet, fewer companies prioritise ESG reporting and metrics. Without adequate investment in management capacity and infrastructure, smaller local players risk exclusion from global supply chains due to an inability to meet ESG expectations. DECEMBER 2023
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Environmental, Social and Governance (ESG) According to a PwC report, there is a need to tackle ESG issues in supply chains, emphasising regulatory shifts and identifying supplier risks as crucial concerns
This exclusion could concentrate production in deeper tiers of the supply chain, increasing supply chain risks, and potentially undermining customer trust in case of disruptions. Plastics and Rubber Asia (PRA) interviewed Vietnam-based chemical distributor and producer of biodegradable plastic packaging Stavian Chemical, and INCIT (International Centre for Industrial Transformation), a Singapore-based ESG institution and independent non-profit entity on advocating manufacturing transformation. Both companies provide insights about ESG, including how they assimilate ESG standards into their businesses and how they foresee ESG impacting the industries in the ASEAN region and globally. Stavian Chemical: meeting the growing demand for green consumption Stavian Chemical is a contributor to the advancement of manufacturing sustainability, with expertise in key developments within the polyolefins industry in Asia, according to Tony Dinh, Chairman/CEO, who discusses his company's vital role in the industry's expanding sustainability agenda. The company, ranked among the top 22 global chemical distributors, has evolved into a prominent distributor and producer of resins, plastic finished
products, petrochemicals, and chemicals across Asia, Europe, North and Latin America, and Africa. Dinh’s approach has not only positioned the company as a global sustainability benchmark but has also solidified its standing in innovation. PRA: In response to the increasing focus on environmental issues, can you provide examples of how Stavian Chemical is actively working to improve the sustainability of its chemical supply chain? "We do not view ESG strategy as a checkmark on a 'to-do' list of an investment proposal or big fancy words to recruit, but we genuinely incorporate ESG targets into our corporate strategy and business plans, along with financial goals, " says Stavian Chemical's Tony Dinh
Tony Dinh: As a forward-looking organisation, we prioritise our ESG programmes with a strong commitment. We do not view ESG strategy as a checkmark on a "to-do" list of an investment proposal or big fancy words to recruit, but we genuinely incorporate ESG targets into our corporate strategy and business plans, along with financial goals. This is a real challenge, as there will always be a big gap between strategy and implementation plans with actual results. However, since sustainability is unquestionable, we ensure appropriate resource allocation to promote ESG strategy, and we trust that it's all worth the effort. We're sourcing our suppliers with sustainability targets in mind, using a compliance-driven approach from all perspectives, such as human, social, economic, and environmental impacts. PRA: How have you integrated ESG principles into your corporate performance practices?
Stavian Chemical proactively takes a Circular Economy approach to develop its end-product portfolio, including biodegradable and plant-based packaging products
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Tony Dinh: We detail our ESG implementation plans in the short, medium, and long term, including carefully considering natural resources or environmental-related business decisions, implementing comprehensive human resource development and structure, and the best corporate performance practices for the company. Specifically, we have established a new business line of biodegradable recycled plastic resin besides highperformance polymer resin trading and distribution.
Environmental, Social and Governance (ESG) This is to meet market demand and promote strong green consumption and lifestyles, given the background of tightening regulations from international authorities on recycled raw materials to minimise plastic waste. As well, we proactively take a Circular Economy approach to develop our end-product portfolio, including biodegradable and plant-based (eg. moulded pulp) packaging products. INCIT: ESG gaining momentum in the ASEAN Raimund Klein, CEO of INCIT, shares insights into the pivotal role of ESG in reinforcing companies' sustainability agendas. He also underscores how the ASEAN can derive benefits by incorporating ESG practices to enhance its competitiveness. INCIT provides an array of frameworks and tools to “start, scale, and sustain manufacturing transformation journeys” These offerings include the Smart Industry Readiness Index (SIRI), said to be the world's first independent digital maturity assessment for manufacturers; the Consumer Sustainability Industry Readiness Index (COSIRI), a comprehensive framework and set of tools designed to help manufacturers embed sustainability into all of their operations. Also included are ManuVate, an innovation platform that enables idea generation across the entire value chain using crowdsourcing principles and Global Executive Industry Talks (GETIT), a thought leadership platform where business leaders may engage with like-minded professionals, experts, and luminaries to discuss the latest industry advancements. PRA: How do companies/industries incorporate principles into their business practices to contribute to the sustainability agenda? (In the first place, what is the benchmark for sustainability)? Raimund Klein: ESG is unfortunately challenged by the absence of a clear definition, resulting in a negative perception and its association with greenwashing. The absence of specific guidelines on measuring and improving sustainability/ESG contributes to this issue. Amidst these concerns, the question arises: why transform a company into a sustainable one? An intriguing response provokes thought: "How hot was your summer this year?" - implying the growing relevance of sustainability in our changing climate. PRA: What are some key ESG metrics and indicators that investors and stakeholders use to evaluate a company's commitment to sustainability? Raimund Klein: A 360-degree sustainable maturity check involves examining sustainable strategy, sustainable business targets, green business modelling, cash flow allocation, and focusing on sustainable business processes such as energy, water pollution, and land use.
"ESG is unfortunately challenged by the absence of a clear definition, resulting in a negative perception and its association with greenwashing, " opines INCIT's Raimund Klein.
Furthermore, it involves addressing greenhouse gas (GHG) scopes 1 and 2, which cover direct emissions from controlled sources and indirect emissions related to purchased electricity or other resources. Additionally, evaluating GHG scope 3 entails assessing indirect emissions from customer usage or supplier production, considering both upstream and downstream impacts, with a specific focus on optimising each scope individually. Moving forward, there is a need to create a circular product design and to define the cradle-to-grave process. This phase also involves exploring clean technology utilisation, optimising its usage, and involving the workforce and leadership in ESG target setting and fulfillment. Meanwhile, 'G' (Governance) is a crucial component in obtaining a 360-degree maturity profile of a company's ESG/Sustainability maturity. Governance, along with physical/ reputational/policy risk mitigation, is also integral to ESG/sustainability considerations. PRA: How are the countries in ASEAN including ESG principles in their plans to be more sustainable, and what are the results so far? Raimund Klein: ASEAN member countries are taking various steps to integrate ESG principles into their sustainability plans. ESG considerations have gained importance in the region due to increasing awareness of environmental and social challenges, as well as the recognition of the role of good governance in achieving sustainable development. Here are some ways in which ASEAN countries are integrating ESG principles: Several ASEAN countries were working on or had already implemented regulations and policies related to ESG reporting and disclosure. For instance, Singapore introduced mandatory sustainability reporting guidelines, and Indonesia developed a roadmap for sustainable finance. Some ASEAN countries are promoting green finance initiatives, including the issuance of green bonds and the establishment of green investment funds to support environmentally sustainable projects. Improved corporate DECEMBER 2023
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Environmental, Social and Governance (ESG) governance was a focus, with efforts to enhance transparency, accountability, and shareholder rights. This was aimed at fostering investor confidence and attracting responsible investments. Thus, ASEAN countries are increasingly turning to technology and innovation to tackle environmental and social challenges. This involves promoting innovation in sustainable agriculture, clean energy, and the development of smart cities. PRA: What specific ESG challenges and opportunities do ASEAN countries face, and how do these impact the region's overall sustainability goals and economic development? Raimund Klein: Looking at industries in ASEAN and globally, there aren’t much differences. The primary focus is on economic development, followed by sustainability and supply chain resilience. The biggest challenge is that emerging countries within ASEAN need to focus on economic development; and sustainability may be a competing target, potentially hindering the focus on productivity. When we look at INCIT’s COSIRI ESG star rating, the significant issue lies in companies' inability to establish a baseline for measuring the GHG emissions in scopes 1, 2, and 3 at their production sites and across supply/distribution channels. PRA: How can cross-border collaboration and partnerships between ASEAN nations help address ESGrelated issues and contribute to a more sustainable and resilient regional economy?
The Consumer Sustainability Industry Readiness Index,
INCIT's COSIRI is a comprehensive framework and set of tools designed to help manufacturers embed sustainability into all of their operations
Raimund Klein: ASEAN nations can share their experiences and best practices in ESG-related initiatives. This knowledge exchange can facilitate mutual learning among countries and enable the adoption of effective strategies to address environmental, social, and governance challenges. Collaboration can enhance the efficient mobilisation of resources. Through collective efforts, ASEAN nations
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could harness their combined financial and human resources to tackle large-scale ESG projects, such as the development of renewable energy, infrastructure upgrades, and social welfare programmes. Moreover, ASEAN countries can collaborate to harmonise ESG-related regulations and standards. This consistency can make it easier for businesses to operate across borders and encourage greater foreign investment, ultimately fostering sustainable economic growth. Transforming certain negative aspects can lead to the positive development of regional ESG frameworks, aiding in aligning the goals and strategies of member states. This alignment can enable coordinated action on regional challenges such as climate change, water resource management, or the growing necessity for disaster resilience. Additionally, ASEAN cooperation can enable the transfer of sustainable technologies among member states. This may include sharing innovations in renewable energy, waste management, and green transportation, contributing to economic growth while mitigating environmental impacts. Such advancements could also positively impact export businesses. PRA: What strategies can ASEAN adopt to align skilled labour development with ESG principles to attract more investments and/or improve economic resilience? Raimund Klein: Looking at our COSIRI prioritisation index, developing human capital is vital for addressing ESG issues. ASEAN nations can collaborate on education and training programmes to build expertise in ESG fields, ensuring a skilled workforce capable of managing and implementing sustainable practices in factories. Observing the results of COSIRI in climate risk mitigation, resilience, and disaster preparedness, ASEAN nations can reduce economic risks linked with natural disasters, policy mandates, and the physical climaterelated risks within industries. Ultimately, the utilisation of ESG standards such as COSIRI is poised to bolster investor confidence in the ASEAN region. This could attract responsible investment, fostering economic growth and aligning with prevailing global ESG trends. PRA: How does the integration of ESG factors in ASEAN's sustainability agenda impact foreign investment, trade relationships, and the region's attractiveness as a destination for sustainable development projects? Raimund Klein: Well, that's not a question – it's more like a must-have statement. If you're not producing in a circular manner or integrating ESG into your organisation in the future, I would predict you will likely be out of scope in five to ten years. Your production would become obsolete!
Digitalisation
How digital twins are helping to make the invisible, visible in Indonesia’s energy industry By Raj Kaushal, Senior Business Development Manager, APAC at James Fisher AIS
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estled amidst the equatorial seas, Indonesia emerges as a mesmerising archipelagic state. A sprawling tapestry of over 17,000 islands and spanning one eighth of the Earth’s circumference, this vast expanse is a testament to nature's abundance. Amidst this beauty lies an energy-rich heart, where geothermal power is drawn from the Earth's core, and ocean tides beckon as an untapped source of renewable potential. But it also has a rich oil and gas heritage, with the industry’s production peaking in the 1990s. Challenges in Indonesia’s energy industry However, over the last few decades, the country has faced challenges such as declining reserves, ageing oil and gas infrastructure, and regulatory issues, leading to a decrease in oil production and a shift towards natural gas, as a lower emissions alternative. Oil and gas will continue to play a major role in Indonesia’s varied energy portfolio ensuring domestic energy security, but to continue to do so, certain challenges will need to be addressed. The decline in production is owed to the country’s particular set of challenges, such as investment frameworks, field development solutions and the balance between national and private entity interests. Introducing digital solutions that deliver increased efficiencies can therefore prove to be challenging. Connecting the dots and digitalising the archipelago Key to solving this is awareness that digitalisation could provide a solution to a sector with many data silos. Digitalising operations can bring a whole host of benefits such as reducing asset downtime and improving worker productivity and on-site execution efficiency, by bringing together data that helps to paint a vivid picture of an asset’s real-time status. In Indonesia, assets are typically in very remote locations with limited data connectivity. Modern digital systems can support the rapid integration of data to allow engineers and managers to instantly visualise the reality of the situation without wasting time on lengthy data gathering activities. Centralised digital systems can bring together asset data from the most remote corners of Indonesia, helping local oil and gas companies, as well as government entities which provide support and funding, to better understand the safety and operating status of energy hubs and assets within its operation.
Raj Kaushal says that the oil/gas sector will continue to play a major role in Indonesia’s energy portfolio, but it needs to digitalise operations to reduce asset downtime and improve worker productivity and on-site execution efficiency
Digitalised data is vital when dispersed teams are operating on the ground in different locations. From mobile phones to social media, digital technology connects us, helping to bring the disparate islands of the archipelago together. Digital solutions providers on the ground across the islands can help Indonesian energy producers access enriched views of their assets through centralised, digitalised systems of data management. Pin-pointing exact anomalies, faults and risks, this real-time overview of an ageing infrastructure, in remote and unforgiving environments, can plug the gaps in operations. With even newer technologies like digital twins, Indonesian operators can access reality data, helping them to monitor assets and operations across the archipelago. Through this, pre-planning of maintenance, as well as the delivery and quality assurance of major projects plays a large role in the broader regional energy context. Additionally, some digital twin software models can connect site imagery to existing data to give operators a detailed view of their assets. For Indonesia’s aging infrastructure, this could provide significant opportunities to maximise output as the assets degrade. Connecting the dots and building relationships to foster growth Whilst digitalisation might plug the gaps and connect the dots, just as it connects dispersed asset data, companies can be wary of taking a risk of investing in the search for a return on investment. However, the opportunity to deliver more value from assets remains. By partnering with software companies – those with local, geographical and historic knowledge of sites, to support exploration, drilling and production – national oil companies (NOCs) and smaller, local energy production companies in Indonesia can find their operations vastly maximised. DECEMBER 2023
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Digitalisation Hesitancy to change can be common, particularly when the stakes of energy security – a key concern of NOCs – are high. For this reason, digital solutions providers looking to make headway in the region need to consider adapting their approaches, building bridges with flexibility in mind. Met with wariness in some instances, these companies will be wise to take local nuances into consideration. Historically, long-lasting partnerships across the industry have been fostered through consultative-style processes. Through this, confidence is built, trust is instilled, and progress is made. By being adaptable, Indonesia’s oil and gas companies can have renewed confidence in adopting innovative technologies such as digital twins, data analytics, and predictive maintenance, by making smaller changes in the first instance, and then building on top of that success. This model could mean that Indonesian energy companies are keener to adopt advanced technologies like data analytics and predictive maintenance, ultimately bolstering their operations. With this growth, seeing a return on investment should instill further confidence in these partnerships and technologies, giving Indonesian firms the option to scale operations and adoption. And the proof has been in the pudding, with companies who have already adopted this digital approach. With digital twins providing access to reality
data, Indonesian operators have eyes on assets and operations 3,000 km away, making the invisible, visible. This has already been done at a remote LNG production facility in Indonesia, where James Fisher AIS’ R2S digital twin meant that the team could cut down on the 20 hours of flight time and boat journey to reach the facility from the nearest hub city, as well as increase collaboration across the dispersed team. Looking to the future Indonesia has previously prioritised energy security over becoming a major energy exporter. However, this could be set to change as the nation begins to take its place within the global energy transition, with agreements in place to export clean energy to Singapore, and recent progress made in prioritising natural gas and geothermal energy. Indonesia has clear ambitions to grow its energy industry across sectors and bolster its power generation too. With this, it ensures that in the future, lower carbon intensity energy sources also have a part to play in both the energy transition and energy security of the region. Across oil and gas, geothermal and natural gas, it’s clear that digital solutions and flexible business models which put energy companies and their pain points first, will be key to achieving these.
Packaging JaeKwang produces CPP flat films in a five-layer process South Korean packaging maker JaeKwang, which previously operated exclusively as a converter since its establishment in 1999, decided to take a new direction by producing films recently. This was a big step for JaeKwang, which is now the first company in South Korea to produce CPP flat films in a five-layer process. It was able to do this through the installation of its first five-layer, 1,300-kg/hour CPP film line from German extrusion machinery maker Reifenhäuser.
Reifenhäuser and JaeKwang have ensured that the CPP machine has been tailored to meet the optimum requirements of the end product. Thanks to Reifenhäusers core competencies in the hot part extrusion equipment, the Reifenhäuser team was able to fully align the line with the needs of its customer and the local raw materials. Technologically convincing for JaeKwang was in particular the feedblock system from Reifenhäuser. JaeKwang opted for a Coextrusion Adapter Pro. This enables multilayer production in low tolerances and adjustment of the layer distribution during ongoing production. The Korean all-rounder has therefore now commissioned Reifenhäuser to install a second line. In South Korea, packaging materials are designed creatively and elaborately in terms of haptics and appearance. In addition, there are growing consumer demands for functionality. Currently, for example, the so-called easy tear function JaeKwang is said to be the first packaging manufacturer in South Korea to produce CPP flat films in a five-layer process, with machinery from Reifenhäuser
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Packaging is particularly in demand for pouches. With this function, any type of pouch can be opened quickly, safely, and cleanly thanks to an integrated tear strip. This user-friendly solution can be realised by a line with a stretching unit (MDO), which JaeKwang will now install in the next step. This plant technology will also be the first of its kind in South Korea, claims the firm.
ExxonMobil collaborated with machine maker Reifenhauser and Kuraray to produce a recyclable, thermoformed package with 95% PE weight content, without compromising package functionality or optics
Downgauged air column bags for logistics; full PE thermoformed packaging for recyclability Chinese film convertor Zhejiang Jujie New Material Co wanted to reduce material use by downgauging the co-extruded polyethylene (PE) films used for its air column bags. Air column bags are widely used as protective packaging during e-commerce logistics and transportation. Thus, it collaborated with US materials supplier ExxonMobil to utilise its Exceed XP and Exceed S 9243 performance PE that can enable downgauged PE films for use of less material. The typical structure of an air column bag is PE/ tie-layer/PA/tie-layer/PE co-extrusion. ExxonMobil provided Jujie with one of its new downgauged starting formulations that uses Exceed S 9243 and Exceed XP 6056 performance PE in the PE layer of the air column bags. Starting from the ExxonMobil-provided formulation, Jujie made custom modifications to arrive at a solution that works in its five, seven, nine-layer blown lines, and Jujie then seals and tubes the film into bags with its bag making line. Data from trials conducted by Jujie demonstrated that a 45-micron film, downgauged by 10% compared to a market reference film, offered excellent burst resistance, comparable film stiffness and needle puncture performance, as well as strong cost and material savings potential, says the firm.
The success of the trial led to the commercialisation of 45-micron air column bag by Jujie, which helps to establish its technology advantage compared to other market players with the 50-60 micron products. Meanwhile in another case study, ExxonMobil collaborated on a full PE thermoformed packaging with 95 weight % PE content. It consists of a formed PE/ EVOH bottom web and PE/EVOH lid film - with both high oxygen barrier and package integrity through optimised corner thickness and puncture. The bottom web was produced with ExxonMobil resins like Exceed XP, Exceed and Enable performance PE and a special EVAL EVOH resin for thermoforming. The films were made on a Reifenhäuser Aqua Cool nine-layer barrier line. ExxonMobil resins Exceed XP 7052ML and Enable 4009MC provide puncture performance and formability, while the EVAL EVOH resin LT172B designed for thermoforming, combines low thickness with high barrier properties. The top film consists of a PE/EVOH coex film produced on a Reifenhäuser Aqua Cool nine-layer barrier line with Exceed XP 7052ML, Exceed 2012MA and EVAL EVOH high barrier resin L171B. The suppliers say that the combination of Reifenhäuser’s Aqua Cool technology and ExxonMobil’s performance resins can result in excellent optics, exceptional puncture performance and formability. The package was then formed and filled on a Multivac R126 machine according to industry standard process conditions. Under optimised thermoforming trial conditions on the R245 Multivac line, maximum line speed (>12 cycles/ minute) was achieved. ExxonMobil’s collaboration with Jujie enabled it to create downgauged air column bags for the growing e-commerce logistics industry DECEMBER 2023
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Packaging Neste and Mitsui Chemicals worked on seaweed snack packaging made with renewable materials for CO-OP in Japan
Suppliers tie up for sustainable seaweed/rice packaging in Japan/South Korea Materials firms Neste, Mitsui Chemicals and Prime Polymer, a subsidiary of Mitsui Chemicals, are working together to provide more sustainable food packaging solutions for CO-OP, a brand of the Japanese Consumers Co-operative Union (JCCU). In the first phase of the collaboration, bio-based raw materials will replace fossil ones in the production of the packaging material for a seaweed snack. Going forward, the companies intend to introduce bio-based raw materials also to packaging for further products. “Change begins with small things. In this case, it’s slices of dried seaweed,” says Lilyana Budyanto, Head of Sustainable Partnerships APAC at Neste’s Renewable Polymers and Chemicals business unit. “However, the impact of renewable plastics packaging isn’t small at all. It’s a crucial contributor to the sustainability transformation of the plastics industry and reducing emissions along the value chain. We are looking forward to the cooperation with Mitsui Chemicals, Prime Polymer and JCCU evolving.” Neste provides renewable Neste RE, a feedstock for polymers that is made entirely from bio-based raw materials. Through Mitsui Chemicals and the company’s subsidiary Prime Polymer, the feedstock is processed into renewable PP under the brand name Prasus, which is then turned into food packaging for JCCU. The packaging made with renewable materials comes with the same quality and performance as previously, when it was produced from fossil feedstock. The sole differences lie in the reduced carbon footprint of the packaging and the replacement of fossil materials during its production. A mass balancing approach is applied to allocate the renewable material to the plastic packaging. The seaweed snack packaging is the first packaging made with renewable plastics via mass balancing that has received the Japanese Eco Mark certification. In related news, chemical firm Sabic has announced that a food-contact grade of its Trucircle portfolio of certified renewable PP resins is used in the production of Hetbahn instant white rice packaging bowls by CJ
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CheilJedang, a South Korea-based global food company. The rigid bowls are the first of their kind using certified renewable PP in a ready-to-eat-rice packaging in Asia Pacific and align with CJ’s strong ‘Nature to Nature’ sustainability roadmap. Mohammed Al-Zahrani, Vice President of Sabic’s Polypropylene Business, comments: “Food brands around the world are increasingly looking for materials that will help them reduce their carbon footprint without compromising the performance, convenience and food safety of their packaging. Our certified renewable grade from our Trucircle portfolio used in CJ’s Hetbahn rice bowls meet the food-contact regulations, and offers the same ease of processing and high end-use quality as competitive all-virgin polymers.” The Hetbahn brand, which is one of the top brands in cooked rice and now expanding its product portfolio to include porridge, frozen rice, cooked rice with soup etc, was originally launched in 1996 and means freshly harvested and cooked rice and has changed consumers’ perception of Korean rice meal culture. The rice grain is polished in a strict raw material process, cooked the same day and packed in a sterile environment so that the delicious tas te of the rice can be preserved. The rice bowls are manufactured by sheet extrusion and subsequent thermoforming. The PP polymer from Sabic has a certified renewable content of 25% and provides the critical attributes of dimensional stability and heat resistance required when microwaving the rice directly in the cup. In addition to this, the used bowls can be returned into the rigid PP recycling stream to recover their material value and enable a more circular packaging industry. CJ has already started to introduce the new Hetbahn rice bowls in E-Mart stores, one of the largest grocery chains in South Korea. Grace Kim, SVP of Global Packaging R&D at CJ, adds: “We are excited to launch our very first ISCC PLUS certified food packaging with renewable PP from Sabic. It marks a significant milestone in our ongoing efforts to reduce the carbon footprint and minimise the use of fossil based feedstock in our packaging. Maintaining high standards of quality and safety is a top priority for our company while continuously delivering more environmentally friendly and sustainable packaging. We hope our initiative will inspire the global market by demonstrating the possibilities of renewable circular materials and creating the momentum toward achieving a circular economy.” Sabic and CJ Cheiljedang claim a world-first with ready-to-eat rice packaging bowls made with 25% rPP
Sustainability
Asian industries’ staying power via sustainable practices Industries are moving towards a confluence of supply chain resilience, sustainable practices, and technology advancements, according to this interview with consulting firm EY. Supply chain resilience in a disruptive era Supply chain resilience is pivotal in the face of economic, political, and environmental disruptions. Plastics and Rubber Asia (PRA) interviewed Atul Chandna, EY AsiaPacific Supply Chain Leader, who discussed the benefits and challenges of attaining sustainability against the backdrop of evolving policies, standards, and technological breakthroughs. Chandna underscores the need for adaptability and localised operations to mitigate risks. Transitioning to a circular model simplifies sourcing and enhances sustainability, says Atul Chandna, EY Asia-Pacific Supply Chain Leader
PRA: Could you elaborate on the strategic shifts towards sustainable supply chains and the role they play in enhancing resilience? Atul Chandna: Various disruptions such as Covid-19, geopolitical tensions, and ESG (Environmental, Social and Governance) pressures significantly impact manufacturers and exporters. As the world becomes highly interconnected, manufacturers and exporters are required to possess exceptional competencies for a competitive advantage. Relatedly, transitioning to a circular model simplifies sourcing and enhances sustainability. Supplier and component selection according to ESG and United Nations (UN) Sustainable Development Goals (SDG) guidelines are among the other important aspects to consider. Sustainable supply chains are becoming imperative. Additionally, localised supply chains through nearshoring/ reshoring reduce the risks of disruptions. Shorter chains enable faster responses to changes in demand, improve margins, and reduce tariffs and the carbon footprint. Integration of ESG Principles for sustainable development ESG represents a body of practices that organisations adopt to mitigate negative impacts or amplify positive influences on the environment, society, and governance frameworks. It serves as the bedrock for sustainable development, advocating concerted efforts aimed at fostering an inclusive, sustainable, and resilient future for both people and the planet.
In line with the UN’s perspective, accomplishing sustainable development relies on the harmonisation of three pivotal components: economic advancement, societal inclusivity, and safeguarding the environment, all of which collectively contribute to the well-being of individuals and societies. Chandna sheds light on how manufacturers are progressing in integrating ESG concepts into their supply chain strategy. PRA: Given recent economic and political disruptions, industries are now more aware of the importance of adopting strategies to safeguard their businesses. Similarly, ensuring supply chain resilience has become imperative. How are manufacturing companies stepping up, such as by incorporating ESG principles into their supply chain strategies, to bolster resilience and mitigate risks? Atul Chandna: In today's VUCA (volatile, uncertain, complex and ambiguous) world, our clients in the manufacturing sector increasingly recognise the value of integrating ESG principles into their supply chain strategies. These initiatives include risk mapping, supplier assessment and diversification, and continuous monitoring. To effectively manage risks, the first step is mapping and assessing vulnerabilities across the supply chain, considering environmental risks, social impacts, and governance issues. This understanding enables companies to develop targeted strategies to mitigate risks and enhance supply chain resilience. Manufacturing companies are also conducting thorough assessments of their suppliers' sustainability practices, evaluating environmental performance, labour conditions, ethical sourcing, and regulatory compliance. By working with suppliers committed to ESG principles, companies can mitigate risks and improve the overall sustainability of their supply chains. Supplier diversification also minimises disruptions caused by natural disasters, geopolitical events or shifts in the market. Long-term risk management and resilience planning rely on continuous monitoring of key sustainability indicators. This process allows companies to identify potential risks and take proactive measures to address environmental impact, labour practices, and governance issues within their supply chains. DECEMBER 2023
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Sustainability Technology as a catalyst for resiliency Enhancing the adoption of AI-powered technologies and analytics for optimising supply chains represents the path forward. Chandna foresees a future where autonomous supply chains swiftly adapt to demand fluctuations, fostering unparalleled flexibility and efficiency. PRA: What role does technology play in enhancing supply chains? Atul Chandna: To gain a competitive advantage, the industry needs to leverage Artifical Intelligence (AI)powered technologies and advanced analytics, which will increasingly reduce opacity and other complexities in today’s supply chains. This technology aids in sustainable sourcing, compliance, and the creation of a seamlessly integrated supply chain. Projections suggest that by 2035, 45% of supply chains will likely be mostly autonomous. This advancement enables exporters and manufacturers to instantly respond to changes in customer demand, adjusting supply plans and production schedules in real-time. Consequently, the supply chain becomes more flexible, efficient, and optimised. COP28's environmental imperatives The COP28 or the Conference of the Parties, the 28th UN climate meeting held in Dubai, has reignited discussions about achieving the goal set by nearly 200 countries, in Paris in 2015, to limit long-term global temperature rises to 1.5°C. Currently, the world is projected to experience warming of 2.4°C to 2.7°C by 2100, posing a significant threat to the goal. Chandna highlights the urgency of technological solutions, such as renewable energy, IoT, and blockchain, to combat climate change. These innovations enhance energy efficiency, transparency, and traceability in supply chains, he adds. COP28 highlights the 2015 Paris Agreement goal of limiting global temperature rise to 1.5C
PRA: What innovations and technologies do you anticipate will (or must) be harnessed to minimise environmental impact, enhance supply chain efficiency, and increase transparency? How do these initiatives align with COP28's focus on technology as a pivotal driver of sustainable development?
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Atul Chandna: COP28, the UN conference, focused on climate change mitigation and adaptation, and recognises the critical role of technology in addressing and combating climate change. Technological innovations are essential for identifying the primary sources of emissions and climate risks, developing informed strategies, and tracking progress. One significant technology that can contribute to sustainability goals is renewable energy solutions. By reducing reliance on fossil fuels and increasing the use of renewable sources like solar, wind, and hydropower, carbon emissions can be significantly lowered, leading to a cleaner and more sustainable energy supply. Additionally, advanced communication technologies, virtual reality, and remote monitoring tools offer opportunities for remote collaboration and reduced travelrelated emissions. IoT technologies and sensors are valuable in enabling organisations to collect large amounts of data across supply chains. Through real-time data, companies gain crucial insights into operational efficiency, energy usage, and waste management. When combined with advanced analytics, they enable informed decision-making, identifying improvement opportunities, optimising logistics, and minimising environmental impacts. Furthermore, blockchain and distributed ledger technology can enhance supply chain transparency, traceability, and accountability. These technologies provide secure and immutable records, enabling companies to track and verify sustainability-related information such as carbon credits, responsible sourcing, and ethical practices. Asian manufacturing sector in adopting ESG The incorporation of ESG concepts in Asian manufacturing represents a substantial shift toward sustainability and ethical practices. Chandna articulates how this adoption heralds a transformative phase for the sector, infusing more responsible approaches into traditional manufacturing methods and amplifying the industry's global accountability to enhance its resilience. PRA: How are businesses and organisations in Asia presently integrating ESG principles into their manufacturing and supply chain operations? Atul Chandna: With more shareholders and stakeholders asking for greater business accountability, companies in Asia are making significant strides toward integrating ESG principles into their manufacturing and supply chain operations. They are implementing environmentally friendly manufacturing processes, such as reducing waste and incorporating energy-efficient technologies. There is also an emphasis on fair labor practices and worker well-being. PRA: How do you perceive this alignment with the goals and objectives of COP28 in addressing global climate challenges?
Sustainability Atul Chandna: There are more conversations within companies about enhancing transparency, with a focus on adopting reporting frameworks like the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), and other sustainability and climate-related standards. A notable development in this regard is the establishment of quantitative targets for reducing emissions in manufacturing and supply chain operations. This aligns with the call of COP28 to take tangible actions when addressing global climate challenges. PRA: How do you envision ESG's ongoing role in advancing sustainability goals within this industry? What are the key advantages and potential drawbacks linked to the adoption of ESG principles within the manufacturing sector, both in Asia and on a global scale? Atul Chandna: ESG principles offer a broad sustainability framework, encompassing four key dimensions: people, planet, prosperity, and governance. By embracing ESG, organisations can effectively align their practices with the broader goals of sustainability and contribute to a more sustainable and resilient future. At an operational level, the implementation of sustainable practices facilitates cost reduction through resource efficiency and supply chain optimisation, as well as improved risk management strategies, enhanced corporate reputation and greater stakeholder trust. Organisations also reap the benefits of higher employee engagement. PRA: What are the significant challenges that manufacturers might face as they work to integrate ESG into their operations, and what strategies can they employ to effectively surmount these challenges? Atul Chandna: Some common challenges that we observe clients face include identifying the most relevant and material areas for ESG integration within their operations, establishing robust systems for measuring and reporting ESG performance and impact, and balancing competing objectives and managing trade-offs against other business priorities. To overcome these challenges, we support clients across industries to develop a clear roadmap for longterm sustainability that is aligned with their overall business objectives. This entails setting achievable targets, implementing monitoring systems, and regularly reporting on progress. Collaborating with suppliers, industry associations, and other stakeholders to promote sustainability and share best practices is also critical. Additionally, taking advantage of the increasing availability of green financing can help organisations manage the initial financial strain associated with sustainability investments.
Transitioning into sustainable material sourcing The significance of sustainable material sourcing in adopting eco-friendly methods cannot be emphasised. Its value goes far beyond local environmental issues; it drives industry, influences consumer preferences, and has an enormous effect on global ecosystems. Businesses that prioritise sustainably-sourced materials lower their environmental effect, advocate for ethical practices, and help to establish a more sustainable future for future generations. PRA sought Chandna's perspectives on sustainable material acquisition and supply chain resilience. PRA: Could you share insights on how manufacturers are actively lowering their carbon footprint and mitigating environmental impacts within their supply chains? Atul Chandna: Manufacturing companies are actively working to reduce their carbon footprint and environmental impacts in their supply chains. While strategies to reduce Scope 1 emissions depend on the product type, there are common strategies for Scope 2 and 3 emissions. Manufacturers can adopt renewable energy sources by installing infrastructure or working with renewable energy providers. When these options are limited, improving energy efficiency by optimising equipment, upgrading technologies, and implementing energy management systems can reduce energy consumption. Sustainable material sourcing practices, such as using recycled or bio-based materials, are a priority to lower environmental impact. This decreases carbon emissions and resource depletion. Furthermore, embracing circular economy principles also helps reduce waste and downstream emissions. Learning from developed economies EY’s Chandna highlights the importance for Asian industries to learn from developed economies, establishing partnerships, benchmarking ESG performance, and engaging with policymakers for supportive policies. PRA: How can Asian manufacturers leverage the experiences of industries in more developed economies that have already adopted sustainability practices? Atul Chandna: Asian companies can benefit from establishing partnerships and collaborations with industry leaders, participating in conferences, and workshops to share knowledge, particularly regarding ESG integration. For instance, benchmarking their ESG performance against companies in developed economies helps identify areas for improvement. Furthermore, engaging policymakers and regulatory bodies in Asian countries is essential to encourage the development of supportive policies based on best practices from more developed economies. DECEMBER 2023
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Injection Moulding Asia Automotive
Sustainable mobility powers up automotive sector Furthermore, there is a strong focus on enhancing charging infrastructures with faster capabilities and advancing battery technologies, according to the recent report from Economist Intelligence Unit (EIU)’s Automotive Outlook 2024. Nevertheless, the report also highlights that government backing for EVs could potentially intensify trade tensions, even though policymakers persist in offering subsidies for purchases, supporting manufacturing and supply chains, and investing in infrastructure. Meanwhile, audit firm Deloitte’s 2023 Global Automotive Consumer Study highlights affordability as the primary concern for US consumers in adopting EVs, while globally, the primary motivation for selecting an EV is to reduce vehicle operating expenses, surpassing climate concerns. The transition to EVs varies in pace across global markets, each encountering distinct challenges in adoption, such as charging infrastructure costs and availability. The Asahi Kasei-SKOPOS study mentioned that charging capabilities play a crucial role in purchase decisions, with range and charging time being pivotal factors for potential EV buyers worldwide.
Is the goal of attaining sustainability mobility achievable? With the focus hinged on electric vehicles and battery
electric vehicles, the race is on to find the least possible emission generators, against the backdrop of achieving sustainability.
T
he global automotive industry is undergoing a significant shift in response to the challenges it has faced in recent years. Presently, its growth trajectory is influenced by various factors, notably the heightened focus on reducing emissions. Achieving sustainability stands as a primary goal for numerous original equipment manufacturers (OEMs). Is sustainability mobility a fairy tale? Nevertheless, findings from the 2022 automotive interior survey conducted by Japanese technology company Asahi Kasei and the market research institute SKOPOS based in Cologne, Germany, indicated that the goal of achieving “sustainable mobility” is still distant, even in light of the transition to zero-emission vehicles. Moreover, the survey findings highlight that defining a “sustainable vehicle” goes beyond just drivetrain technology; it now includes considerations like the CO2 footprint during production, the incorporation of easily recyclable materials, and the commitment of vehicle manufacturers and their suppliers towards decarbonisation. This emphasises the growing importance of sustainability and transparency across the value chain from the customer ’s viewpoint. At the same time, the automotive industry faces hurdles like inflation and continual disruptions in the supply chain. Additionally, crucial trends such as the rise of electric drivetrains, advancements in digital driver assistance systems, the increasing merging of vehicles and users into digital data networks, and the potential direction of autonomous driving, collectively represent a pivotal juncture in automotive history. Despite internal combustion engine (ICE) vehicles still leading in future purchase options among consumers, there is noticeable evidence of a growing preference for electrified powertrains.
Automotive connectivity takes centrestage Elsewhere, according to consultancy McKinsey’s 2023 Global Automotive Connectivity Executive Survey, automotive connectivity is poised for significant growth. Over half of the respondents -- comprising 56 auto executives from Asia-Pacific, Europe, and the US -ranked connected cars (vehicles employing connectivity and digital features for an enhanced mobility experience) as one of the top two trends shaping the future of mobility, second only to electrification. The study predicts that by 2030, 95% of new global vehicle sales will be connected, with 12% of these equipped with level three or level four autonomousdriving capabilities. Are BEVs better for the environment? Battery electric vehicles (BEVs) are the clear winner when trying to reduce emissions in the transportation sector, according to Rystad Energy research. Despite incurring higher emissions in the manufacturing process of EVs and an enduring reliance on fossil fuel power generation in many countries, the positive environmental impact of switching to a BEV over the vehicle’s lifetime is unmistakable. The company says its analysis shows that batterypowered vehicles contribute at most half the carbon dioxide equivalent (CO2e) of diesel or gasoline cars across their lifecycle, regardless of the country of operation. Even in countries where the power grid is
EVs hoping for light at end of tunnel Starting in 2024, electric vehicles (EVs) are anticipated to experience a surge in sales and production, driven by stringent policies aimed at tackling climate change. Automakers and governments are intensifying efforts to minimise emissions and congestion through the implementation of driving restrictions, particularly in urban settings.
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Injection Moulding Asia
Lifetime emissions avoided due to BEV sales in 2022 2.0
230 million tonnes CO2e avoided: 13.7% of total emissions
1.8
Gigatonnes of CO2e
Cumulative emission avoided due to passanger BEV sales Cumulative passanger BEV emissions
25 million tonnes CO2e avoided: 19% of total emission
1.6 1.4
RystadEnergy
Automotive
Cumulative passanger ICEV emissions
1.2 1.0
0.8 million tonnes 6.9 million tonnes CO2e avoided: 0.4% CO2e avoided: 8.8% of total emission of total emission 12.5 million tonnes CO2e avoided: 10% of total emission)
0.8 0.6 0.4 0.2 0.0 China
(21.1% BEV market share)
United States
(5.2% BEV market share)
India
(0.8% BEV market share)
Note: BEV market share calculated for passenger vehicles in 2022 Source: Rystad Energy research and analysis, October 2023 A Rystad Energy graphic
dominated by fossil fuels, battery-powered cars emit about 50% of the CO2e of an ICE vehicle. As renewable sources replace coal and gas-fired generation, emissions related to the operation of BEVs could drop by 86%. Rystad says its research of lifecycle BEV and ICE vehicle emissions considers every stage of the manufacturing process and the vehicle’s operation. This includes the manufacturing of the vehicle’s body, known as body in white (BIW), powertrain assembly, maintenance, fuel and electricity-related emissions and battery production for BEVs.
Germany
(17.7% BEV market share)
France
(13.3% BEV market share)
Germany and France were chosen to reflect the European market in general and assess different power mixes, keeping other factors mostly similar. It used its base case power generation forecast for each country when evaluating lifecycle emissions to accurately reflect the evolving nature of electricity generation and its impact on BEV emissions. Each vehicle is expected to last 18 years, after which age most vehicles are scrapped. Annual distance driven varies widely by country, with consumers in the US driving longer distances. US vehicles travel on average about 23,000 km/year, compared to 19,000 km in China and about 13,500 km in Germany, France and India. When forecasting emissions over the next 18 years, Rystad says it predicted the evolution of driving distance based on historical data. Mileage in the US, China and Europe is expected to fall about 1% annually based on official driving statistics and surveys, while distances driven in India are expected to increase by 0.5% per year as the country is still in the middle of its motorisation period.
BEVs and emissions in China/US Based on the current power generation mix in China, the lifecycle emissions of a BEV are about 39 tonnes of CO2e versus almost 85 tonnes for an ICE vehicle. The difference in the US is even starker. A BEV emits 42 tonnes of CO2e across its life in the US, 58% lower than a gasoline or diesel vehicle that emits more than 100 tonnes. Of these totals, emissions related to the extraction, refining and burning of fossil fuels contribute about 90% of all ICE emissions. The breakdown of emissions across a battery-powered vehicle’s life is directly tied to its electricity consumption and how that power is generated.
The power market holds the key A country’s power mix will play a significant role in determining how quickly emissions reduction can be achieved when switching to BEVs. Whereas ICE vehicles become more emissions heavy as they age, BEVs will emit less over the years as power generation becomes greener. For instance, in Rystad’s base case scenario predicting the development of the US power grid, battery-powered cars will emit just 14% of the emissions equivalent from a gasoline or diesel car in 2041.
Looking across the board The company says it selected five countries for its analysis – China, the US, India, Germany and France – due to their diverse transportation factors like driving patterns, type of vehicle dominant in each country and varying power mixes, both historical and forecast.
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Injection Moulding Asia Automotive
100
BIW and powertrain Vehicle maintenance
-53%
Tank to Wheel 80
Electricity consumption -58%
60
40
20
0 ICEV
BEV
China
ICEV
BEV
United States
ICEV
BEV
Germany
Source: Rystad Energy research and analysis, NREL, ANL, October 2023 A Rystad Energy graphic
Stark contrasts can also be found in regions where most other factors are similar. Comparing Germany and France, the only deviation is in the emissions intensity of the grid. France, largely dominated by nuclear power, has about an 84% lower carbon intensity than Germany, which relies heavily on gas generation. Hence, emissions from charging an EV in France will be about 70% lower, resulting in around 37% lower lifecycle emissions. Performing the same comparison for a coal-heavy power mix, in the case of India, results in 43% lower lifecycle emissions. Overall, adopting BEVs – even in a status quo power mix future – will be beneficial to the environment, especially in countries with high annual mileage like the US.
How much CO2 can EV sales displace? Using this power-mix analysis, Rystad says it can estimate the BEV charging emission per year volume of emissions avoided Tonnes of CO2e through BEV sales, assuming China United States Germany France India United States (status quo power mix) driving distance is the same 3.5 across both vehicle types. The average displacement 3 factor varies widely by country depending on 2.5 driving patterns and model 2 availability. For instance, China has low annual average 1.5 mileage and widespread BEV model availability, leading 1 to an almost 1:1 emissions 0.5 displacement factor. However, BEV adoption in the US can 0 vary hugely from state to 41 31 032 033 034 035 036 037 038 039 040 23 024 025 026 027 028 029 030 state. European countries 2 2 20 2 20 2 2 2 20 2 2 2 2 2 2 2 2 2 2 have anywhere from a 0.8 to Source: Rystad Energy research and analysis, NREL, ANL, October 2023 A Rystad Energy graphic 1.1 displacement factor.
RystadEnergy
Tonnes of CO2e
-58%
RystadEnergy
To illustrate this, 5 million passenger BEVs were sold in China in 2022, versus 17 million ICE cars. Battery production Assuming each of these BEVs emits Well to tank 39 tonnes CO2e in its lifetime and an Methane/NOX ICE emits 85 tonnes CO2e, ICE sales would emit 1.4 gigatonnes CO2e -41% total, while the BEVs sold will add about 200 million tonnes of CO2e to the environment. However, if the same 5 million BEVs had been ICEs, added emissions would have been around 430 million tonnes CO2e. ICEV BEV Thus, BEVs result in a lifecycle emissions reduction of 230 million India tonnes CO2e – almost 14% of total passenger car emissions. A similar analysis in the US shows this figure at 25 million tonnes CO2e. “Overall, battery electric vehicles are clearly the right technology to reduce emissions in the transportation sector. Switching to a BEV will reduce long-term emissions despite a larger environmental impact at the beginning of the vehicle’s life. Contrary to some claims, electric car adoption is not a fool’s errand; it will slash emissions in the long run and accelerate the energy transition,” says Abhishek Murali, senior clean tech analyst with Rystad Energy. Given these trends, it is evident that individual mobility and automotive transportation will continue to play a crucial role in people’s lives globally. However, the challenges of achieving zero-net emissions, ensuring vehicle comfort, user experience, and affordability persist.
Vehicle lifecycle emissions in select countries
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Rubber Journal Asia Sustainability
Southeast Asia’s rubber sector rooting for sustainability Promising solutions are emerging in the form of sustainable rubber practices, aimed at curbing deforestation and substantially reducing the environmental footprint within the rubber sector, adds Angelica Buan in this report.
Tyres have the biggest market share and employ a combination of natural and synthetic rubber to provide the necessary performance and durability. Furthermore, natural rubber (NR) is still used in the production of medical rubber items such as gloves, catheters, and other medical equipment. The environmental impact is one of these challenges. The huge rubber plantations of Southeast Asia have historically resulted in considerable deforestation and habitat loss, particularly in countries such as Indonesia and Malaysia. This deforestation has an impact on biodiversity as well as contributing to climate change. Various players are involved in Southeast Asia’s efforts for sustainable rubber. Governments are putting legislation in place to encourage sustainable land use and to assist smallholder farmers in adopting environmentally friendly methods, while private organisations and local communities collaborate on this shared purpose. Furthermore, multinational companies procuring rubber from this region are increasingly adhering to sustainability standards and collaborating with suppliers to ensure ethical and environmentally responsible sourcing.
F
or a variety of reasons, industries play an important role in adhering to sustainable rubber practices. Firstly, demand for rubber is consistently high, particularly in areas such as automotive, construction, and manufacturing. Traditional rubber production methods, on the other hand, frequently include deforestation, monoculture plantations, and unethical labour practices, resulting in biodiversity loss, habitat devastation, and social inequalities. Industries can offset these negative effects by converting to sustainable rubber. This not only benefits the environment and communities but also helps companies meet consumer demands for ethically sourced and environmentally friendly rubber products.
Averting deforestation The expansion of rubber production resulting from growing demand for NR has significantly fueled deforestation, notably in regions like Southeast Asia. A study led by the Royal Botanic Garden Edinburgh, utilising new satellite data and advanced computer modeling, revealed that deforestation due to rubber production is three times higher than previous estimates. This is especially so in Indonesia, Thailand, and Vietnam.
The persistent demand for rubber in industries like automotive, construction, and manufacturing clashes with the environmentally and socially harmful traditional production methods involving deforestation, monoculture plantations, and unethical labour practices.
Southeast Asia to gain from sustainable rubber adoption Globally, consumer awareness and demand for sustainably sourced products are rising. Southeast Asian countries have a potential to lead the way in satisfying these demands, improving market competitiveness, and securing long-term market access for their rubber goods. Supplying over 90% of total world rubber demand, the region’s significance arises from its critical role in the worldwide rubber supply chain, as well as the environmental and socioeconomic issues connected with traditional rubber manufacturing.
The Royal Botanic Garden Edinburgh-led study, using updated satellite data and advanced modeling, unveiled a threefold increase in deforestation attributed to rubber production compared to earlier assessments. (Photo from the RBG-Edinburgh website)
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Rubber Journal Asia Sustainability Previous methods struggled to identify smallholder rubber plantations via satellite due to their size and similarity to forests. But with improved satellite imagery, the researchers detected over 14 million ha of mature rubber plantations in Southeast Asia, where more than 90% of global rubber is produced. Their mapping revealed that over 4 million ha of forests have been lost since 1993 due to rubber-related deforestation—equivalent to the size of Switzerland. Alarmingly, more than 1 million ha of rubber plantations were established in key biodiversity areas. This underscores the need for policymakers to prioritise rubber production in domestic policies, trade agreements, and upcoming legislation, while also considering the livelihoods of smallholder rubber producers in any regulatory actions. Additionally, it marks the challenges in tracing rubber supply chains and advocates for including rubber in regulatory processes to enhance traceability efforts and promote sustainable production. It stresses the necessity of using the most reliable evidence to guide policy decisions concerning deforestation caused by major cash crops, a task made more feasible with advanced satellite observation.
Initially excluding rubber, the EUDR faced pressure for its inclusion. In November 2022, Preferred by Nature and nine other civil society members of the Global Platform for Sustainable Natural Rubber (GPSNR) jointly petitioned the EU to include rubber within the ambit of this new regulation. Violating the EUDR law could invite a range of penalties established by the EU’s national legal systems. These may include fines tied to the environmental harm caused and the value of the affected commodities. Companies found in violation could face fines of at least 4% of their annual turnover in the EU. Plus, confiscation of goods and revenue, along with suspension or prohibition of economic activities, and temporary exclusion from public procurement processes. Ratings firm S&P Global’s report on the EUDR law anticipates increased operational costs and scrutiny for companies introducing EUDR-related products into the EU market. This regulation, set to influence trade and supply chains for deforestationlinked goods over the next decade, is expected to impact major palm oil producers in Asia, agribusiness sectors in countries like Brazil and Argentina, and cocoa exports from Côte d’Ivoire and Ghana to the EU. With the inclusion of rubber, it is not unlikely that rubber manufacturers would be impacted in some way. Under the EUDR, companies must screen global suppliers to ensure that the products placed in the EU have not caused deforestation. Furthermore, the EUDR requires due diligence statements confirming supplier compliance with land-use, labour, and human rights laws, extending its impact beyond deforestation.
Divided perspectives on EU policy on deforestation Rubber producers in Asia are on edge about the potential impact of the European Union (EU)’s fresh regulations targeting deforestation. The EU’s Deforestation Regulation (EUDR) aims to restrict the import of seven key commodities, including soy, palm oil, beef, cocoa and rubber, sourced from land deforested after 31 December 2020. This regulation went into effect in June, mandating companies to rigorously screen global suppliers, ensuring compliance through mandatory checks for deforestation and forest degradation.
Indonesia makes a case to curb deforestation The Indonesian government has committed to fostering forest and land use practices that, by 2030, will absorb more carbon than they emit—a target known as the FOLU net sink target. This objective forms part of Indonesia’s Enhanced Nationally Determined Contribution (NDC), aiming to reduce greenhouse gas emissions (GHG) by 32%, or up to 43% with international assistance, by 2030.
The objective of the EU’s Deforestation Regulation (EUDR) is to limit the entry of seven primary commodities—such as soy, palm oil, beef, cocoa, and rubber—obtained from land that underwent deforestation post-December 31, 2020.
2 DECEMBER 2023
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Rubber Journal Asia Sustainability It has been mentioned that it submitted a document called Long Term Strategy for Low Carbon and Climate Resilience 2050 (LTS-LCCR), aiming to boost national climate action. It outlines a vision to peak emissions at 1.244 Mt CO2e by 2030, then drop to 540 Mt CO2e by 2050. The projection is to achieve net zero emissions by 2060. These efforts aim not only to cut emissions but also to enhance community livelihoods through sustainable forest management activities. However, the EUDR appears to have added pressure to Indonesia, which was ranked as the world’s secondlargest rubber producer in 2022, after Thailand, with a 22% market share. Declining rubber prices, exacerbated this year by rubber leaf fall disease, may lead rubber farmers to switch to other crops, potentially causing a future shortage of NR. With low rubber exports, compliance with the EUDR is anticipated to strain the country’s exports. As well, the EUDR requires proof of nondeforestation origin for commodities like rubber and palm oil to enter the EU market. However, Indonesia is negotiating with the EU, primarily focusing on palm oil, to find viable solutions.
Pirelli launched a unique logo for tyres with over 50% biobased and recycled materials, debuting with the P Zero E tyre containing over 55% eco-friendly components, emphasising their environmental commitment.
Pirelli achieved an FSC-certified tyre in 2021, sourced sustainably from forests, while materials used in P Zero E include lignin from the scrap of the pulp and paper industry; rice husk ash silica, derived from the scrap of rice cultivation. It also features circular carbon black, from end-of-life-tyre pyrolysis oil; bio-circular polymers, made from monomers derived from used cooking oils or tyre pyrolysis oil; NR, bio-resins from plasticisers derived from plant biomass; and rayon, according to Pirelli.
Pirelli tyres to contain ecofriendly materials Numerous companies are actively supporting sustainable rubber initiatives, through R&D, to find alternative sources of NR, such as guayule or dandelion rubber, which can be grown in different regions without causing deforestation. Additionally, there is a growing emphasis on certifying rubber products through schemes like the Natural Rubber Sustainability Initiative (NRSI) or the Forest Stewardship Council (FSC) ensuring that rubber is sourced responsibly and ethically. For tyre makers, demand for eco-friendly, sustainably-sourced products is an opportunity to contribute to reducing carbon footprint of the tyre manufacturing sector and halting deforestation. As such, Italian tyre manufacturer Pirelli has introduced a distinctive logo for tyres containing over 50% biobased and recycled materials, showcasing its commitment to the environment. The first tyre featuring this marking, the P Zero E, contains more than 55% eco-friendly materials, certified by Bureau Veritas, a firm involved in verifying ISO14021 certification. Third-party verification of eco-compatible materials will continue to be standard across all future products that adopt the new logo, says Pirelli. Meanwhile, Giovanni Tronchetti Provera, Head of Sustainability and Future Mobility at Pirelli, says the company is aiming for 60% biobased and 12% recycled materials by 2030, with reduced fossil-derived ingredients.
Michelin targets sustainability; hones into Indonesia Elsewhere, French tyre maker Michelin has its sights set on achieving 40% recycled and renewable materials in its tyres by 2030. It has spearheaded the development of two tyres: one for cars and the other for buses, containing 45% and 58% sustainable materials, respectively. Approved for road use, these tyres are said to match the performance of current models.
Michelin plans to reach 40% recycled and renewable materials in its tires by 2030, having introduced two new road-approved models, one for cars (45% sustainable materials) and one for buses (58% sustainable materials), both matching the performance of existing models.
3 DECEMBER 2023
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Rubber Journal Asia Sustainability Meanwhile, the tyre maker has upped its stake in Indonesia’s Royal Lestari Utama (RLU) project, from 49% to 100%, making it the sole owner. This project, in partnership with Barito Pacific Group, aims to develop sustainable rubber tree plantations in Indonesia. The initiative, which began in 2015, aims to develop conditions for long-term NR production covering nearly 70,000 ha in Sumatra’s Jambi province and 18,000 ha in Borneo’s East Kalimantan province. These areas suffered significant damage and deforestation prior to Michelin and its Indonesian partner ’s involvement, claims the company. Over a six-year period, 23,000 ha of land was targeted for rubber tree plantations, while 39,000 ha was set aside for agroforestry and subsistence agriculture. The effort intends to improve the lives of nearly 50,000 people by generating 4,000 jobs, training farmers in rubber tree production, and diversifying crops. The group has invested over EUR1 billion in Indonesia with Michelin Group Purchasing Director Vincent Rousset-Rouvière emphasising that acquiring sole ownership of RLU allows Michelin “to continue with an ambitious yet commendable long-term project that combines social welfare, environmental preservation, and economic performance”.
The use of rCB in tyres, according to Marco Musaio, Bridgestone Europe’s Head of End-of-Life Tire & Circular Economy, is an important aspect in the company’s efforts to achieve 100% sustainable products by 2050. Conversely, according to Fabien Gaboriaud, Senior Vice-President of Sustainable Materials & Circularity at Michelin, the transition from a linear to a circular value chain entails a shift in mindset and enhanced adaptability. The conversion of ELTs into cutting-edge materials that may be reused in tyres is a significant step toward reaching the goal of obtaining 40% recycled and renewable sustainable materials by 2030, he said. Toyo in R&D to fast-track sustainable materials development Toyo Tire Holdings of Europe GmbH, a sales subsidiary of Japan’s Toyo Tire Corporation in Europe, recently entered into an industry-university partnership with the University of Novi Sad in Serbia to drive R&D of sustainable raw materials on a global scale.
Michelin/Bridgestone partnership for rCB use in tyres Along the same vein, Michelin has joined compatriot tyre maker Bridgestone in advocating for expanded use of recovered carbon black (rCB) in tyre production. The companies jointly released a white paper, which points out that, globally, 1 billion tyres, representing around 30 million tonnes of material, are estimated to reach the end of their useful service life every year. Although many of the technical challenges surrounding the use of recycled and recovered materials from end-of-life tyres (ELTs) are understood, but there are significant market barriers to achieving material circularity at the scale necessary to realise material circularity in tyres, say the tyre makers. Today, less than 1% of all carbon black material used globally in new tyre production comes from recycled ELTs, due to a sub-optimal supply chain for the recovery and reuse of carbon black. They add. “Recycled carbon black presents an opportunity to reduce the tyre industry’s reliance on petrochemicals by replacing a portion of traditional carbon black with a sustainable and circular alternative without introducing performance compromises,” according to the companies. Additionally, using rCB in new tyre production can reduce CO2 emissions by up to 85%, compared to virgin materials.
The signing ceremony featured Toyo Tire corporate officer Kenta Kuribayashi and University of Novi Sad rector Dr Dejan Madic.
The joint research involves the development of renewable raw materials using plants sourced from Serbia, and the creation of recycled raw materials from waste tyres. Novi Sad is Serbia’s second-largest city and home to the university that boasts a faculty for technology, particularly renowned in rubber technology. Targeting to increase sustainable material usage to 40% by 2030 and 100% by 2050, Toyo Tire says it has initiated this collaboration to leverage the university’s expertise in agriculture. By engaging in this partnership, Toyo Tire expects to expedite global undertakings in developing sustainable raw materials and integrating them across its products. Additionally, it adds that by joining forces with the entire tyre sector ’s sustainable rubber initiatives ensures the long-term viability of the rubber industry while minimising its adverse impact on ecosystems and communities.
4 DECEMBER 2023
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