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Bangkok – 25 February 2026: Marking the first-ever collaboration of three industry leaders, Taokaenoi Food & Marketing Public Company Limited, or TKN, a manufacturer of seaweed snacks distributed domestically and internationally, SCG Chemicals, or SCGC, a leading integrated polymer and solutions provider for sustainability, and Dow Thailand Group, or Dow, a global leader in materials science, have jointly announced the signing of a landmark Memorandum of Understanding (MoU) to revolutionize the snack industry through the “Food-Grade Circular Packaging by Advanced Recycling Technology” project. This initiative aims to sustainably address plastic waste challenges under the concept of closed-loop recycling. This collaboration entails utilizing multi-layer packaging waste from the production processes of Taokaenoi, which was previously difficult to recycle. This waste will be processed using the advanced recycling technology of SCGC and converted back into circular feedstock. Following this, Dow will utilize the feedstock to produce new, clean, and food-grade plastic resins. These resins will then be safely used to manufacture food packaging for the Taokaenoi brand once again. It is anticipated that the packaging will be ready for commercial distribution by the end of 2026. Ms. Orrapat Peeradechapan, Chief Executive Officer of Taokaenoi Food & Marketing Public Company Limited, said, “Taokaenoi is committed to creating happiness for consumers through high-quality snacks, alongside prioritizing ESG (Environmental, Social, and Governance) principles by emphasizing sustainable economic, social, and environmental development. This collaboration represents a significant milestone that transforms the ‘challenge’ of hard-to-recycle packaging into an ‘opportunity’ to establish a practical circular economy. It is not merely about waste disposal, but rather about creating new value from used plastic. We do not only deliver great-tasting products, but we also aim to deliver a better world to consumers through eco-friendly packaging innovations that are clean, safe, and tangibly reduce environmental impacts. This will drive our business to grow alongside genuine sustainability.” Dr. Suracha Udomsak, Chief Operations and Innovation Officer of SCGC, said, “This collaboration reflects the capability of SCGC in utilizing advanced recycling technology to manage plastic packaging composed of multiple materials, which is difficult to recycle, and converting it back into circular feedstock. This feedstock can be used to produce new plastic resins (Certified Circular Polyolefin Resin), which possess properties and quality entirely equivalent to standard virgin plastic resins in all respects and are safe for direct food contact. As a result, the materials can be reused to manufacture food packaging for Taokaenoi. In addition, our process has achieved the globally recognized sustainability certification, ISCC PLUS (International Sustainability and Carbon Certification), throughout the entire supply chain, making SCGC the first company in ASEAN to achieve such certification. This partnership is considered a crucial step in driving SCGC’s goal of reintegrating used plastic into the circular economy system at a volume of 500,000 tons per year by 2030, through collaborations with business partners across the entire value chain.” Meanwhile, Mr. Vichan Tangkengsirisin, President of Dow Thailand, added, “As a materials science leader, Dow is proud to support this collaboration in Thailand by applying our technology to produce circular plastic resins from used flexible packaging feedstock with performance equivalent to fossil-based plastics. Dow Thailand Group’s polyethylene facility in Rayong is ISCC PLUS certified for its capability of converting advanced recycled feedstock into high quality, food grade circular resins. This initiative represents an important step toward closing the plastics loop in Thailand and advancing Dow’s sustainability ambition to transform the waste through collaboration with customers and value chain partners.” This collaboration serves as a model for the comprehensive management of used multi-layer plastic packaging. It reduces the accumulation of plastic waste in the country and decreases the consumption of new resources. This aligns with the sustainability goals of Taokaenoi, SCGC, and Dow, reinforcing the role of the business sector in tangibly driving the circular economy to build a sustainable future together.
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Chandra Asri's purchase of Singapore refinery bring scale, risk

SINGAPORE – While Chandra Asri’s deal to buy Shell’s Singapore refinery will see it join the ranks of South-east Asia’s largest petrochemicals players, it is taking on the risk of running an ageing facility in a highly competitive sector.

In taking over Shell’s Bukom facility, which dates to 1961, Indonesia’s Chandra Asri Pacific will acquire an asset that is less efficient than more modern plants, but which gives it a second naphtha cracker, expands its product portfolio and renders plans to build a greenfield complex in its home country unnecessary, analysts and industry insiders said.

Owning a refinery for the first time will also give Chandra a ready source of feedstock, from crude oil facilitated by Swiss trading house Glencore, its minority partner in the deal, which can help sell its products into global markets.

“Glencore as its partner means Chandra Asri can harness this trading giant’s strengths in not only the trading sphere but also on the logistical front,” said Mr Salmon Lee, head of polyester at Wood Mackenzie.

“It’s a very significant step in Chandra Asri’s stepping up its game in the increasingly competitive petrochemical industry,” he added.

The companies did not disclose the value of the deal, but brokerage Jefferies estimated sale proceeds of US$300 million (S$406 million) to US$500 million.

Shell in 2023 invited more than a dozen companies, including numerous Chinese petrochemicals firms, to look at its Bukom assets in a process managed by Goldman Sachs, sources have said, with Chandra Asri one of the earliest to show interest.

The purchase, to close by year end, will give Chandra Asri nearly two million tonnes per year of ethylene capacity, leapfrogging it into South-east Asia’s top three, according to Reuters calculations, behind Thailand’s PTT Global Chemical and Siam Cement Group’s facilities in Thailand and Vietnam.

Chandra Asri had planned a second Indonesian cracker with a target start-up date of 2026 to 2027, but industry sources said the acquisition of Shell’s cracker offered a cheaper option in a high-cost environment.

“We see a possibility that Chandra Asri may no longer proceed with its plan to build a second Indonesia cracker project given the geographical diversification after merger and acquisition,” Citi analyst Oscar Yee wrote.

Asked about its previous expansion plan, Chandra Asri told Reuters: “As an integral part of our growth strategy, we actively seek opportunities to build partnerships with diverse entities, both to nurture organic business and pursue strategic M&A.”

Competition, risk

With the Bukom purchase, Chandra will steal a competitive march on rival Lotte Chemical Indonesia’s planned one million ton per year cracker, expected to come online in mid-to-late 2025.

However, the ageing Singapore plant brings challenges, given an industrywide squeeze on petrochemical margins.

Most steam cracker operator margins in Asia, excluding China, were negative in 2023, with an upturn likely only in 2028, Wood Mackenzie calculations show.

A September report by the consultant said Bukom was the weakest integrated refinery-petrochemical site in Shell’s portfolio, with integrated net cash margins below the global weighted industry average of US$14 a barrel.

North-east Asian plants making naphtha-based monoethylene glycol, a major product at Shell’s site, averaged losses of US$94 a ton in 2022 and 2023 due to overcapacity and weak China demand, said analyst Ann Sun from market intelligence firm ICIS.

Singapore is also set to increase its carbon emissions tax from $5 a tonne now to $25 in 2024-2025, $45 in 2026-2027 and $50-$80 by 2030, which analysts say could add millions of dollars to refiners’ costs. REUTERS