Published On: Sat, Jun 11th, 2011

SCG Chemicals pushes compostable plastics

SCG Chemicals has suggested that the government strongly promote the use of compostable

plastics by consumers to encourage companies to invest in this business for commercial products.

Yuttana Jiamtragan, managing director of SCG Polyolefins, a subsidiary of SCG Chemicals that manufactures compostable plastics, said these were environment-friendly products but the consumption levels were still low. They are priced about three or four times as much as normal plastic products.

Unlike ordinary plastics, these products are made from biological raw materials and broken down into compost.

Yuttana noted that demand for them in the global market was increasing because consumers gave importance to protecting the environment and products from natural sources. Demand is expected to surge to 3.2 million tonnes by 2020, a growth rate of 15 per cent a year, but demand in Thailand is only 300 tonnes a year, most of which is imported, he said.

SCG Chemicals is the first company in Thailand to produce compostable plastics.

Strong promotion by the government would encourage companies to increase investment in compostable plastics in response to increased demand of consumers.

When consumption increases, the country will benefit, especially by boosting farmers’ income, because the raw materials of compostable plastics are cassava and sweet corn.

Somsak Borrisuttanakul, president of the Thai Bioplastics Industry Association, said the government, PTT Group and SCG were developing a pilot project for producing compostable plastics.

The association has proposed to the Finance Ministry a tax reduction for companies that manufacture products from compostable plastics, but the ministry has not approved this yet, he said.


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