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Kao and SCGP Strengthen Strategic Partnership to Advance Sustainable Packaging Innovation
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Kao Industrial (Thailand) Co., Ltd., a leading Japanese manufacturer of consumer products and chemicals, and SCG Packaging Public Company Limited, or SCGP, a leading integrated packaging solutions provider in ASEAN, are strengthening their collaboration in packaging innovation through the signing of a Memorandum of Understanding on Innovation and Sustainability Partnership. The partnership brings together the strengths and expertise of both organizations to further develop environmentally friendly packaging, particularly mono-material flexible packaging, which facilitates recycling and helps reduce environmental impact. It also supports preparations for European Union packaging and environmental requirements, including Extended Producer Responsibility (EPR) and the Packaging and Packaging Waste Regulation (PPWR). The collaboration extends to exploring applications of artificial intelligence (AI), digital technologies and data analytics to improve efficiency and create value across both organizations’ value chains, while jointly pursuing opportunities for future innovation and new business development.
Mr. Akira Nishimaki, President of Kao Industrial (Thailand) Co., Ltd., said, “Kao is delighted to strengthen our collaboration with SCGP through the ‘Innovation and Sustainability Partnership,’ building on the cooperation that began in 2022. Both organizations will combine their expertise and strengths to develop packaging innovations that meet consumer needs and are environmentally friendly, while promoting resource efficiency, advancing the circular economy and applying digital technologies to create new business opportunities.
“This partnership aligns with Kao’s ‘Maximum with Minimum’ concept, which seeks to maximize economic and social value while minimizing environmental impact. Kao advances its sustainability goals through its ESG strategy, the ‘Kirei Lifestyle Plan,’ which emphasizes the 4Rs—Reduce, Reuse, Replace and Recycle—and reducing environmental impact throughout the product life cycle to help create a healthier and cleaner world. Kao aims to design all its packaging to be recyclable by 2027 and achieve net zero plastic packaging waste by 2040. We believe that combining the capabilities of our two organizations will generate innovation and long-term value for consumers, society, the environment and our businesses.”
Mr. Wichan Jitpukdee, Chief Executive Officer of SCG Packaging Public Company Limited, or SCGP, said, “Kao is a business partner with whom we share a commitment to growth alongside environmental stewardship. Since signing our memorandum of understanding in 2022, our companies have combined their expertise to develop Green Carton packaging and mono-material flexible packaging that facilitates recycling.
“This renewed partnership will combine Kao’s expertise in chemicals with SCGP’s capabilities in materials, packaging and solutions to develop innovations that reduce greenhouse gas emissions, improve efficiency and meet market needs, while supporting readiness for EPR and PPWR requirements.”
One achievement of the collaboration to date is the development of mono-material refill packaging for Magiclean Natural Essence floor cleaner in the 700 mL format, made possible through the combined efforts of the partners involved. Kao and SCGP will continue to build on this innovation, increase the use of post-consumer recycled (PCR) plastic and develop pulp- and paper-based packaging that helps reduce carbon dioxide emissions. They will also develop solutions to improve packing and transportation efficiency, enhance ease of use and product display, reduce waste and promote the recovery and reuse of resources.
In addition, both organizations will explore opportunities to apply AI and digital technologies to improve efficiency throughout the supply chain and further develop their chemicals businesses. Kao and SCGP believe this partnership will deliver practical solutions that create business value and meet consumer needs for convenience, product quality preservation and packaging management after use. Together, they will advance innovations that generate business value while supporting long-term sustainability for consumers and the environment.
