From 22 November 2022, Volendam-based family business Kras Recycling has officially entered into a strategic partnership with Thai company SCG Chemicals. What exactly does this cooperation look like? Volendam-based Kras Recycling has sold 60% of the company's shares to SCG Chemicals.
Who exactly is SCG Chemicals?
SCG Chemicals is one of the largest integrated global petrochemical companies and is a major market leader in developing circular solutions. An originally Thai company, SCG Chemicals produces products such as plastic resins, olefins, polyethylene and polyvinyl chloride.
Why partner with SCG Chemicals?
According to CEO Ben Kras, the sale of the shares was a strategic choice for the future of Kras Recycling. Thus, the sale of the shares aims to secure the company's future. Kras Recycling is therefore also very happy with the sale. According to the company, Kras Recycling - but also competitors within Europe - will face considerable challenges in the future. Think, for example, of the change from a linear economy to a somewhat more circular economy.
Both Kras Recycling and SCG chemicals agree that an integrated approach within the plastics chain is needed to achieve future-oriented goals around plastic recycling. In the coming years, more and more plastic will have to be recycled, with mechanical recycling alone no longer being sufficient. Innovative developments are therefore needed for the future, such as chemical recycling, to keep plastics that are difficult to recycle in the chain and then reuse them as raw materials. So that entering into such collaborations is vital for, in this case, Kras Recycling.
How will this collaboration affect REKS?
REKS is a joint venture between Kras Recycling, KIVO and 4 Kosovan ambitious entrepreneurs. With this joint venture, these respective companies have established a recycling plant to be able to sort, separate, wash and recycle plastic waste streams. This mainly involves waste streams from supermarket chains and distribution centres.
Now that REKS has a capital-rich and innovative party like SCG Chemicals behind it, REKS is able to scale up faster to a larger recycling capacity as well as implement the latest innovations faster. The supply of the highest quality recycled plastic for KIVO is ensured by agreed guarantees on budgeted volumes.
