LG Chem, a chemical division of the LG Group, formed an alliance with CJ Logistics, a leading logistics enterprise in South Korea, on 6th April 2023, with the aim of recycling packaging wraps utilized at distribution centers. This partnership entails the creation of recycled wraps by the chemical firm and their subsequent supply back to the logistics company.
Here’s the Complete Story
LG Chem and CJ Logistics, based in South Korea, have recently signed a memorandum of understanding (MoU) on 6th April 2023 to collect and recycle packaging wraps disposed of at CJ Logistics' logistics centers throughout the country.
Under this agreement, LG Chem will utilize its post-consumer recycle (PCR) technologies to create recycled wraps and supply them back to CJ Logistics.
To initiate this plastic recycling and resource circulation deal, LG Chem will deliver 1,000 rolls of recycled wrap to CJ Logistics. Moving forward, LG Chem plans to further increase the number of recycled wraps by recycling additional packaging wraps from CJ Logistics.
The majority of packaging wraps consist predominantly of polyethylene (PE) materials and are primarily used to keep items secure during transportation. Despite the production of 800,000 tons of waste PE in Korea on an annual basis, only 40% of it is presently recycled.
By collaborating, LG Chem and CJ Logistics aspire to establish a practical approach for gathering and recycling packaging wraps from logistics centers.
Han Seok-hee, LG Chem's Sales Manager for Polyolefin (PO), has stated, “This partnership will aid in the creation of a circular economy for plastics and reduce carbon emissions, thereby paving the way for a sustainable future.”
Need for Thermoset Plastic Recycling Initiative
Thermoset plastics are widely used in various industries, such as automotive, electronics, and construction, due to their desirable properties like heat resistance, chemical resistance, and durability. However, they are not easily recyclable and have limited end-of-life options. This leads to a significant amount of thermoset plastic waste, which can contribute to environmental pollution and resource depletion.
According to the BIS Research report, the global recyclable thermoset market is projected to reach $987.9 million by 2031 from $536.8 million in 2022, growing at a CAGR of 7.01% during the forecast period 2022-2031.
The demand for recycled plastic materials is increasing due to environmental concerns and regulations. Therefore, the development of thermoset plastic recycling technologies can help meet this demand and reduce the environmental impact of plastic waste.
Moreover, thermoset plastics are often used in critical applications where performance and safety are paramount. Recycling these materials can help reduce the need for virgin materials and conserve resources while ensuring high-quality recycled materials that meet the required standards.
Conclusion
According to Pooja Tanna, Lead Analyst, BIS Research, “Although thermoset is a hard-to-recycle plastic, the adoption of this advanced recycling technology is limited to developed regions. The recyclable thermoset market is expected to witness a significant boost owing to the increasing focus of various countries and companies toward sustainability.”
The worldwide market for recyclable thermosets is projected to expand due to several factors, including the progress made in thermoset recycling technologies worldwide, investments and partnerships in the plastic recycling sector, and regulations that encourage plastic recycling in different nations.
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