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SCG to apply circular economy in RI units
Diversified Thai conglomerate SCG plans to implement the concept of the circular economy in its operations in Indonesia after having successfully applied it at home
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iversified Thai conglomerate SCG plans to implement the concept of the circular economy in its operations in Indonesia after having successfully applied it at home.
Currently, SCG operations in Indonesia consist of more than 20 companies in several business units, including SCG Cement, SCG Building Materials, SCG Chemicals and SCG Packaging.
SCG president and CEO Roongrote Rangsiyopash said the company planned to expand its operations in Indonesia at its SCG Chemicals unit while putting forth the concept of the circular economy, similar to its ongoing expansion in Vietnam.
“Our expansion in Indonesia will basically follow the same trend [as Vietnam]; on one hand, we will expand value creation from an economic standpoint, but at the same time making sure that our product and services are suitable to the concept of the circular economy,” Rangsiyopash said recently on the sidelines of the 2018 Sustainable Development Symposium his company held in Bangkok, Thailand.
Rangsiyopash did not elaborate about the details of its circular business model in Indonesia, but said its operations in the archipelago would ensure the inclusion of sustainability in its strategy.
According to the World Business Council for Sustainable Development, the concept of the circular economy moves away from the traditional “take-make-dispose” economic model to one that is regenerative by design.
The goal of this concept is to retain as much value as possible from resources, products, parts and materials to create a system that allows for a long life, optimal reuse, refurbishment, remanufacturing and recycling.
SCG’s official website says its chemicals unit currently operates in several areas in Indonesia, including Banten, West Java, under PT Chandra Asri Petrochemical, as well as Surabaya and Gresik, East Java, under PT TPC Indo Plastic and Chemicals and PT Siam Maspion Terminal.
Rangsiyopash said the company would further expand its packaging unit in Indonesia by also applying the circular economy.
The unit has several operations in Tangerang, Banten, where it makes products such as carton boxes, among others.
SCG sustainable development committee chairman Cholanat Yanaranop said it mobilized strategies to ensure the implementation of the circular economy.
It has been implemented at the company’s packaging plant in Ratchaburi, Thailand, where products use recycled materials that are manufactured into goods, which are durable and can be recycled after being disposed of.
At its packaging plant, for example, SCG uses recycled carton boxes, which undergo treatment before manufacturing.
Wastewater produced during the manufacturing process also undergoes treatment so it can be reused to supply energy to the plant.
The treated water is also used for the irrigation of agricultural land in nearby areas.
End users of the product can recycle the carton boxes for SCG to use again.
