This acquisition agreement was jointly signed by Mr. Tanawong Areeratchakul, CEO and President of SCG Chemicals or SCGC, and Mr. Ben Kras, Chief Executive Officer of Recycling Holding Volendam BV. SCGC will acquire a 60% stake in Recycling Holding Volendam BV through SCG Chemicals Trading (Singapore) Pte. Ltd.
Mr.Tanawong Areeratchakul, CEO and President of SCG Chemicals or SCGC, said, "SCGC aims to grow the sales of SCGC GREEN POLYMER(TM) portfolio to one million tonnes per year by 2030. SCGC previously invested in Sirplaste, a leading polymer recycling company based in Portugal. We have expanded our investment in the upstream business, which entails the collecting and sorting of plastic waste, a crucial aspect of the recycled polymer manufacturing business that is directly related to the growth of the green polymer products. The investment in Kars will result in a fully integrated recycling business chain that encompasses plastic waste collection, recycling, processing, and reaching European brand customers, in line with SCGC's strategy to encourage continued growth into Chemicals Business for Sustainability."
Kras Netherlands is primarily engaged in collecting and sorting used plastic and paper from households and industrial sectors. In 2021, Kras recorded a total revenue of EUR 92.7 million, or approximately THB 3,475 million. It has the capacity to source and collect 160,000 tonnes of plastic waste per year, and a production capacity of 9,000 tonnes of recycled plastic resin and will expand to another 9,000 tonnes. It also holds a stake in companies engaged in polymer recycling, transportation solutions, and packaging for sustainability.
Ben Kras, Chief Executive Officer of Recycling Holding Volendam BV said, "Kras operates a fully integrated waste materials management business for hundreds of companies in Europe. With more than 70 years of expertise, Kras can source and manage waste materials and invest in recycling-related businesses. One such investment is a stake in REKS LLC, a manufacturer of PCR in Kosovo with a production capacity of 9,000 tonnes per year and is likely to double in growth by 2023. It also holds a stake in Circular Plastics BV, a Dutch company that provides sustainable transportation and packaging solutions. With SCGC's expertise in manufacturing eco-friendly plastics, the company will be able to increase its presence in European markets and generate long-term returns."
The investment in Recycling Holding Volendam BV or "Kras" will strengthen SCGC's GREEN POLYMERTM portfolio, encompassing four areas: (1) REDUCE - reducing resource consumption and maximizing resource efficiency; (2) RECYCLABLE - design for recyclability; (3) RECYCLE - recycling; and (4) RENEWABLE - developing environmentally friendly bio compostable plastics and plastics made from renewable resources. Particularly, the RECYCLE category is anticipated to experience exponential growth. In Europe, the demand for green plastics continues to rise. Currently, SCGC has invested in recycling-related businesses in Europe through two companies: Sirplaste in Portugal and Recycling Holding Volendam BV (Kras) in the Netherlands.