ITOCHU, Borealis and Borouge announce collaboration to enable uptake of renewable polypropylene in the Japanese market
September 25, 2020
ITOCHU Corporation (headquartered in Minato-ku, Tokyo; Yoshihisa Suzuki, President & COO; hereinafter “ITOCHU”), Borealis AG (headquartered in Vienna, Austria; Alfred Stern, CEO; hereinafter “Borealis”) and Borouge Pte Ltd (headquartered in Singapore; Wim Roels, CEO; hereinafter “Borouge”) jointly announced today that they have the strategic intent to jointly evaluate how to enable uptake of renewable polypropylene (PP) in the Japanese market.
The developments of climate change are attracting attention in Japan and overseas, and countermeasures are urgently required. Under these circumstances, Japan has formulated a basic plan to introduce approximately two million tons of renewable plastic products by 2030. There is a need to shift to renewable plastics, which feature enhanced environmental considerations without compromising the superiority of plastics.
Polypropylene is a principal raw material characterized by its high strength and high heat resistance. It is used extensively, including in food containers, daily commodities and automotive parts. Meanwhile, it has been considered difficult to commercialize polypropylene production from renewable materials due to the many technical difficulties in the production.
Since its foundation in 1994, Borealis has been in business in at least 120 countries as a world-class plastic and resin manufacturer. In the environmental sector, it engages in manufacturing and sales of renewable plastics and recycled resins. In March 2020, it embarked on the commercial production of renewable PP and is now working to expand sales in Europe and around the world.
The renewable PP is made from sustainable feedstock from organic waste and residue streams. Unlike using feedstocks produced with agricultural crops suitable for food and livestock feed, this renewable feedstock is composed of various wastes and residues like from vegetable oil production or used cooking oil from the food industry. Re-using waste products to manufacture renewable feedstocks further enhances their appeal from a sustainability perspective. This step clearly showcases Borealis’ EverMinds ™ ambition in terms of thinking circular. The traceability from the point of origin to the final product is ensured through the mass balance model and ISCC Plus certified by a third-party independent body.
ITOCHU aims to enhance its corporate value by addressing social issues through its core business. ITOCHU will move forward with the expansion of the global renewable plastics business, particularly in Japan and in Asia. It targets to commercially launch Japan’s first food containers and packaging materials made of Renewable PP by the end of 2020 as well as other sanitary goods, miscellaneous daily goods, cosmetic containers, office supplies, home electric appliances, automotive parts and other items in many different fields.
ITOCHU will actively use its Group networks in Japan and overseas to create a new business model in the domain of renewable plastics and to accelerate actions towards achieving a society for sustainable global development.
Borouge provides innovative plastics solutions for the packaging, energy, infrastructure, mobility, healthcare and agriculture industries. Borouge is working to bring about a plastics circular economy on several fronts, including developing new disruptive packaging designs for re-use and recyclability, and introducing mono-material solutions that enable recyclability and help to unlock value for customers while supporting their sustainability goals.
Borouge is also actively working across the entire value chain to drive innovations in quality, supply and usage of recyclate materials, and create ready to use, value-adding solutions that our customers require to advance their circularity. Borouge aims to be a one-stop shop to its customers for all their sustainable packaging requirements.
About Borealis and Borouge
Borealis is a leading provider of innovative solutions in the fields of polyolefins, base chemicals and fertilizers. With its head office in Vienna, Austria, the company currently has around 6,900 employees and operates in over 120 countries. Borealis generated EUR 8.1 billion in sales revenue and a net profit of EUR 872 million in 2019. Mubadala, through its holding company, owns 64% of the company, with the remaining 36% belonging to Austria-based OMV, an integrated, international oil and gas company. Borealis provides services and products to customers around the world in collaboration with Borouge, a joint venture with the Abu Dhabi National Oil Company (ADNOC). Borealis and Borouge aim to proactively benefit society by taking on real societal challenges and offering real solutions. Both companies are committed to the principles of Responsible Care®, an initiative to improve safety performance within the chemical industry, and work to solve the world’s water and sanitation challenges through product innovation and their Water for the World programme.