Tie-ups: Dow/SCG tie up for recycling of plastic waste in Asia; Alpla/Re-Purpose to build EUR60 mn recycling facility in South Africa

US materials firm Dow and Thailand’s SCG Chemicals recently signed a memorandum of understanding (MOU) circularity collaboration in Asia Pacific to convert 200 kilotonnes/year of plastic waste into circular products by 2030.

The partners plan to expedite value chain technology development in order to enable recycling via both mechanical recycling (MR) and advanced recycling (AR), as well as transform a greater spectrum of plastic waste into high-value products.

The early steps are intended to form a value-growth collaboration with current suppliers for post-consumer recycled materials, as well as create waste sorting, MR and AR technology solutions in Thailand. The phases aim to establish a healthy materials ecosystem in Southeast Asia. This ecosystem will eventually enable better plastic waste collection and recycling.

The parties anticipate that subsequent phases of the collaboration will include sourcing of plastic waste feedstocks in Southeast Asia, including potential expansion into other parts of the regions like China, Korea, Japan, Taiwan, Australia and New Zealand.

The deal will allow both companies to play a vital role in promoting greater circularity in the region by leveraging Dow's complementary portfolio, research and development capabilities, and technology licensing, Dow noted.

The partnership supports Dow's "Transform the Waste" target which aims to transform plastic waste and other forms of alternative feedstock to commercialise 3 million tonnes of circular and renewable solutions annually by 2030.

The partnership also addresses SCGC's sustainability goals under the "Low Waste, Low Carbon" initiative, striving for carbon neutrality by 2050. SCGC is also reducing greenhouse gas emissions by 20% and expanding its production capacity for its green polymer portfolio with a sales target of 1 million tonnes/year by 2030.

In other news, Alpla Group and South African recycler Re-Purpose have announced a strategic partnership that will advance sustainable packaging solutions and strengthen the feedstock value chain at the first PET recycling facility in Africa.

Alpla is investing EUR60 million in the construction of a recycling plant in Ballito in the South African province of KwaZulu-Natal. Construction of the plant on the 90,000-sq-m site is well advanced. From the beginning of 2025, the plant is expected to produce over 35,000 tonnes of recycled PET (rPET) annually.

Durban-based Re-Purpose is one of the market leaders in the reverse logistics of post-consumer plastic waste through source-oriented collection programmes. With four material recovery facilities around KwaZulu-Natal, Re-Purpose is developing and empowering local communities and buy-back centres to collect and divert a significant volume of plastic waste. The model is also creating hundreds of jobs and income for previously disadvantaged people.

The partnership combines the recycling expertise of ALPLA and the innovative reverse logistics of Re-Purpose. By joining forces, the two companies aim to develop innovative solutions and promote the circular economy. At the same time, a large number of jobs will be created in KwaZulu-Natal, neighbouring provinces and potentially throughout the country.

As part of the collaboration, Re-Purpose will maximise the utilisation of its current baling centres and set up new centres to make it easier for people to collect PET bottles. Re-Purpose will also assist Alpla in building a strategic supplier base for PET bottle bales and work with key stakeholders to expand community reach and separation at source programmes. The aim is to contribute to the collection of 5,000 tonnes of PET per month. This volume is expected to be required for the full capacity operation of Alpla’s recycling plant from 2026.

Re-Purpose brings its expertise in baling with machinery and in developing collection models from the source. The partnership strengthens the company’s impact and drives the widespread adoption of collection programmes with buy-back centres, waste pickers and schools.

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