Technological watch

SCGC Collaborates with HomePro for Closed-loop Electrical Appliances

“HomePro” and “SCGC” are collaborating by signing a memorandum of understanding to introduce 'Circular Products' and launching the first-ever “Closed-Loop Circular Appliances” in Thailand.

These products, created from used electrical appliances, mark HomePro as the first retailer to make Waste Electrical and Electronic Equipment (WEEE) for Closed-Loop Circular Appliances in collaboration with SCGC.

Transforming Used Plastics into Green Polymer
HomePro, a retailer, has spearheaded this initiative to recycle used electrical appliances into a “Closed-Loop” system. This process involves managing the plastic components of used electrical appliances to re-enter a comprehensive closed-loop recycling system.

SCGC plays a crucial role by recycling using advanced technologies to transform used plastics into Green Polymer. Green Polymer is a high-quality, environmentally friendly Post-Consumer Recycled Resin (PCR), under the brand “SCGC Green Polymer™.” These materials can then be transformed into valuable new products, promoting a circular economy and providing tangible solutions to environmental challenges.

Elevating from "Concept" to "Actual Practice"
This significant collaboration not only reaffirms the commitment to sustainable business practices but also elevates the concept to actual implementation. It marks the first time in Thailand that a product line of electrical appliances, such as refrigerators, fans, and washing machines, among others, has been developed in a 'Real Closed-Loop' format, which encompasses a comprehensive recycling process.

HomePro has initiated a trade-in program, “Old for New,” to help consumers properly and environmentally responsibly dispose of used products. Post-use plastics are sorted and sent to SCGC to be recycled into high-quality “Green Polymer.” In collaboration with electrical appliance manufacturers, these materials are then used to produce “Circular Products.” These products have been available for sale at HomePro in-store and online since the end of February 2024.

Saowanee Sirariyakul, senior vice president for Marketing at Home Product Center Public Company Limited, or 'HomePro, said, “HomePro is a top retailer of electrical appliances with a major market share of 18%. Besides initiating projects that encourage consumers to recycle used electrical appliances, we also have campaigns promoting the purchase of eco-friendly appliances, such as offering discounts and loyalty points, which have been well received.

Furthermore, we have produced advertisements demonstrating the proper management of used electrical appliances before they are transformed into new products to enhance consumer awareness and help expand the market. Recent surveys have shown that 20% of consumers are willing to spend or pay 5-10% more for products that contribute to better living, such as those that save energy and care for the environment. This willingness boosts confidence in electrical appliance brands to collaborate and drive the development of Circular Products in Thailand.

Supporting Thailand’s Goal of Achieving Carbon Neutrality by 2030
Dr. Suracha Udomsak, chief innovation officer and executive vice president of SCG Chemicals Public Company Limited, or SCGC, a leading integrated chemical business for sustainability, said, “SCGC leverages its expertise in Green Polymer and Green Solutions to collaborate with HomePro. Together, we drive the recycling of plastics from used electrical appliances back into new appliances. These efforts maintain the original properties through our green polymers under the brand ‘SCGC Green PolymerTM,’ which is certified by the Global Recycled Standard (GRS). This represents a closed-loop recycling process throughout the entire supply chain, which significantly promotes the tangible development of Circular Products.

The driving force and innovation, which have met global standards, address the needs of businesses and brand owners who aim to develop businesses for sustainability. They cater to environmentally conscious consumers by creating new value for used plastics and reducing greenhouse gas emissions. The aim is to support Thailand’s goal of achieving carbon neutrality by 2030 and reaching net-zero greenhouse gas emissions by 2065.

"It is clear that the 'Closed-Loop Circular Products Appliances' currently being driven forward are about sustainability. SCGC aims to push 'SCGC Green Polymer™' to reach a sales volume of 1 million tons by 2030. Last year alone, sales exceeded 200,000 tons."

Prioritizing on Meeting the Quality Standards
Saowanee spoke about the commitment to driving this initiative, "HomePro has set a target that by 2030, Circular Products will constitute 20% of our sales, amounting to 20 billion baht from a total projected revenue of 100 billion baht. This is just the minimum, as it does not include other plastics like the 3-4 million storage boxes we sell each year, outdoor furniture, and others, all of which we aim to switch to using Green Polymer entirely."

She also emphasized the importance of collaboration, adding, "Because HomePro has a nationwide logistics network to bring used items back into the process and forward them to production facilities, where SCGC has extensive expertise. This is crucial; otherwise, we could not achieve a Closed Loop Circular Products system, as we could not circulate back effectively."

Dr. Suracha added, "HomePro’s role as a central driver ensures this initiative moves forward, not just for selling products in HomePro stores, but it also benefits the entire industry. It starts with the electrical appliance industry, which is of immense value and can propel this initiative while maintaining a production base in Thailand. For us, the focus is not primarily on profitability; rather, we prioritize doing something good first. With HomePro willing to think innovatively, SCGC is fully onboard to make this possible."

"We can say that today marks the first step. The most crucial part of this first step is finding the right partners to move forward with. SCGC has partnered with HomePro, which is also committed to this cause. This involves costs and extensive effort to build confidence and must be executed comprehensively to ensure that the outcomes meet quality standards. Product brand manufacturers have indicated that using recycled plastic is not an issue, but the quality must remain the same. This means that if the entire supply chain is not interconnected, we cannot drive this initiative forward. Additionally, having consumers who care about the environment and committed businesses is essential. Therefore, finding partners to collaborate on this is extremely important," Dr. Suracha concluded.

Source: SCGC

This project has been co-funded with the support of the LIFE financial instrument of the European Union [LIFE17 ENV/ES/000438] Life programme

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Last update: 2022-01-31