"The new production facilities are equipped with state-of-the technology to enable an efficient production and thereby reduce our CO₂ emissions," says Thorsten Dreier, Chief Technology Officer of ����AV. “With the expanded capacity, we can meet our customers' growing demand for innovative specialty films, especially in medical technology, in the region Asia-Pacific and strengthen our Solutions & Specialties segment."

����AV has been operating a production facility for Specialty Films in Thailand since 2007. The range comprises polycarbonate films from the Makrofol^® range and Bayfol^® products made from polycarbonate blends. These high-performance specialty films are used in many applications across multiple industries, such as healthcare, mobility and Identification Documents.

“The new production facilities are important to us because it enables faster time to market and at the same time expands our market access in Asia-Pacific.” says Aukje Doornbos, Global Head of the Specialty Films business entity. “With market-focused innovations and a stronger customer orientation we want to drive growth for ����AV.”

Since 2022, the Map Ta Phut site is ISCC PLUS certified, enabling it to manufacture and supply mass-balanced products. With the mass balance approach, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically allocated to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical to that of purely fossil-based products. With this drop-in solution, manufacturers can continue to use their proven formulations, equipment, and processes.

ISCC is an internationally recognized sustainability certification for biomass and bioenergy. The standard covers all stages of the value chain and is used worldwide. Customers can use these products in their established processes and apply them to meet their sustainability goals. In addition, ����AV already offers a range of films made partly with plant-based raw materials or partly from recycled plastics.

This milestone is a testament to ����AV’s commitment to becoming fully circular. The TDI CQ mass-balanced product, also known as  Desmodur® CQ, integrates bio-feedstocks into its production process, significantly reducing CO2 emissions by up to 65% compared to fossil-based products. This innovative solution also supports the transition to a circular economy. 

Far East Foam Vietnam, a Malaysian private company with over 50 years of history, is a leader in producing high-quality foam for mattresses and furniture. The company’s ISCC certification underscores its dedication to Environmental, Social, and Governance (ESG) principles, positioning it as a pioneer in integrating bio-feedstocks into its production processes among foam producers in the region. 

Mr. Chris Loo, Managing Director of Far East Foam, emphasizes the company’s commitment to raising awareness about sustainability among Vietnamese consumers. “With a keen interest in promoting mass-balanced materials and ISCC certification, Far East Foam is dedicated to educating Vietnamese consumers about sustainable practices and the importance of a circular economy. We aim to foster industry transformation and set new standards for environmental stewardship,” said Mr. Loo. 

The mass balance approach allows manufacturers to incorporate bio-feedstocks into their products without modifying their production infrastructure, significantly reducing manufacturing costs compared to traditional methods. This innovative method is relatively new in the local market but holds great potential for advancing sustainable practices. 

A Collaborative Effort for a Greener Future 

Mr. Dang Hoang Giang, Managing Director of ����AV Vietnam, proudly states, “����AV Vietnam’s introduction of the mass balance concept into the foam industry marks a crucial step in advancing sustainable product offerings in Vietnam and elevating ����AV Vietnam’s profile in the broader market. This deal is expected to inspire other companies along the related industries’ value chain to explore ways in which they can contribute to a more sustainable and brighter future. Through collaborative efforts, we will progress towards a circular economy.” 

"We are very proud of this breakthrough solution as it will enable our customers to achieve their sustainability goals faster. This is especially true for industries such as consumer electronics and audio and networking equipment manufacturers, which have ambitious sustainability goals of their own," said Lily Wang, Global Head of the Engineering Plastics segment at ����AV. "This is another step toward our vision of becoming fully circular, and an important contribution to accelerating the transformation of industries toward a recyclable and carbon-neutral future."

This type of plastic can achieve exceptional whiteness and highly saturated colors, which is typically a challenge for PCR plastics with high recycled content. This is made possible by selecting high-quality recyclates and optimizing the material composition during the compounding process. The PCR grade is manufactured with halogen-free flame retardants that meet performance requirements without increasing environmental impact. It also meets the highest V-0 rating of Underwriters Laboratories' UL 94 flammability standards.

Partnership with Jabra

����AV's Bayblend^® FR3010 R75 polycarbonate blend is used, for example, in the ear cups of Danish brand Jabra's latest Evolve2 headset series for audio equipment and video conferencing systems. This type is made of 75 percent recycled material and has a 50 percent lower carbon footprint² compared to its conventional fossil-based counterpart, but still meets performance requirements well.

To meet rising demand, ����AV is currently building a dedicated compounding plant for PCR polycarbonates at its integrated site in Shanghai. Once commissioned, which is scheduled for later this year, it will be able to supply more than 25,000 metric tons of high-quality PCR polycarbonates annually.

Climate-neutral¹ solutions through mass balancing

In addition to PCR grades produced through mechanical recycling, ����AV is also making progress with polycarbonates attributed with raw materials produced using a mass balance approach derived from bio waste and residual materials and certified to the internationally recognized ISCC PLUS standard.

The company now regularly supplies Makrolon^® RE polycarbonates with a renewable attributed raw material content of up to 89 percent³. Selected products, including climate-neutral¹ polycarbonates, are supplied with 100 percent renewable electricity under a TÜV-certified system⁴. Already at the end of 2021, ����AV supplied customers in Europe with the world's first climate-neutral¹ polycarbonates. Also the RE series is part of the CQ portfolio of circular solutions at ����AV.

The mass-balanced products demonstrate an identical good quality and performance as fossil-based polycarbonates and offer an out-of-the-box solution for customers with a significantly lower carbon footprint.

^{1 Climate neutral according to a verified life cycle assessment based on ISO standards 14040/14044. Climate neutrality is demonstrated by assessing a partial product life cycle from resource extraction (cradle) to factory gate, also known as cradle-to-gate assessment. The calculation takes into account biogenic carbon sequestration rather than first "life" pollution. It is based on preliminary data from the supply chain and replaces the electricity grid mix with renewable electricity used in the ����AV manufacturing process. No compensation measures were applied. The LCA methodology developed by ����AV is scientifically sound and corresponds to the state of the art. ID no. 0000083440:}

^{2 According to an internal calculation by ����AV based on the TÜV reviewed EcoPAss LCA method (ID No. 0000083440: )}

^{3 According to the newly published ISCC PLUS system document V3.4, oxygen atoms from ambient air that react with ISCC-certified raw materials are counted towards the sustainable fraction. ISCC PLUS ()}

^{4 Certified management system: ID no. 0000084999:}

"With this investment, we are strengthening our Solutions & Specialties segment and are committed to further expanding our growth businesses," says Sucheta Govil, Chief Commercial Officer of ����AV. "At the same time, we are responding to an increasing demand and supporting the expansion of future technologies and industries."

"We want to drive growth in the polycarbonate films business with innovation and a strong customer focus," says Aleta Richards, Global Head of the Specialty Films segment. “In doing so, we aim to intensify our collaboration with customers in the Asia-Pacific region and expand our product portfolio for the circular economy.”

Expanded range of films made from alternative raw materials

����AV already offers a whole range of , for example mass-balanced grades certified to the internationally recognized ISCC PLUS standard. Raw materials for these films are produced using biowaste and residual materials, which are taken into account in the value chain and in production and attributed to the products.

Since 2022, the Map Ta Phut site has also been ISCC PLUS certified, enabling it to manufacture and supply mass-balanced products. Customers can use these products in their established processes and apply them to meet their sustainability goals. In addition, ����AV already offers a range of films made partly with plant-based raw materials or recycled plastics.

“This CSR project is part of ����AV’s wider ambition to create additional value for the society. With the learning center the company aims to contribute to supporting Thailand on its journey towards the circular economy in full alignment with the company’s commitment to environmentally-friendly production.”

“Young generation is one of a crucial driver to transform our world to become more sustainable in the future. Therefore, we really need to seed the sustainability and circularity mindset to the children and ����AV is committed to support this in everyway we can as our company’s purpose is “To make the world a brighter place”, said Dr.Timo Slawinski, Managing Director of ����AV (Thailand) Co., Ltd.

Sustainability is a core element of ����AV’s mission and an integral part of its strategy. As a company which lives and breathes innovation and wants to grow with products and technologies that benefit society and reduce the impact on environment, ����AV sets sustainability targets which extend beyond its immediate operations , for example, the company aims to become climate neutral by 2035 and want to become fully circular along the value chain. This commitment to sustainability goes beyond declarations and has been confirmed in many projects in which ����AV has been able to realize trailblazing ideas.

The company is promoting its commitment by expanding the basis of raw materials, continuously optimizing the production process in all the plants, and enabling its customers to design their production processes in a more efficient and sustainable manner. Almost all innovations by ����AV follow the aim of bringing together the economy and environmental aspects to benefit the environment and support customer’s business success.

In its operations in Thailand, ����AV also adheres to sustainable production and demonstrates its sustainability stance. Its Map Ta Phut site fully supports the global sustainability agenda with multiple initiatives. For example, the company is now using biodiesel instead of gasoline in its on-site logistical operations. By switching to this clean-burning alternative fuel generated from renewable resources, the company reduced its carbon footprint along the value chain. The production site can now apply mass-balanced approach which is certified by international organization - ISCC PLUS to produce the products for almost entire site. The company is also currently planning to apply renewable energy in manufacturing processes with the expected benefits of reducing water and air pollution.

“We believe in the growth of the cast elastomers market and want to meet the increasing demand. With this new production plant, we achieve a significant improvement of our global infrastructure and strengthen our presence for high-performance elastomers in the Asia-Pacific region,” says Sucheta Govil, Chief Commercial Officer at ����AV. “This investment also allows us to better serve our customers, improve our customer service and it supports the growth of applications and industries with high-end performance requirements.”

“The start up of our Map Ta Phut plant is the latest step of several investments in our Elastomers business to support the Vulkollan^® brand,” explains Thomas Braig, Head of the Business Entity Elastomers. “We firmly believe in the strong potential of this historic and well-known brand and are prepared, with this investment, for its future growth and the development of its customers.”

“Our Map Ta Phut site in Thailand has been well prepared to grow and is now proud and ready to contribute to the Elastomers business while supporting ����AV's overall strategy to strengthen its Solutions & Specialties segment," added Dr. Timo Slawinski, Site Manager Map Ta Phut.

The new plant in Thailand now employs more than 25 people. The elastomers produced from the raw material are suitable for a diverse range of applications: from forklift wheels, roller coaster wheels to couplings and seals for the engineering industry, among many others. The product is one of the most powerful elastomers on the market. Its superior durability, stability and thereby lowered maintenance requirements are among the key features of the material and make it a material of choice for ever more customers and applications.

According to a memorandum of understanding (MoU) signed at ����AV’s booth at the China International Import Expo, the company will work with customers like Sherwin-Williams and Changzhou Changtu Chemical Co. Ltd, logistics solution and infrastructure partners such as Sinotrans Chemical International Logistics and Harbour New Energy Technology Shenzhen, as well as industry organizations such as Smart Freight Center China to devise new green logistics solutions to further reduce greenhouse gas (GHG) emissions across the industry ecosystem.

Truck transport in focus

In the Asia-Pacific region, around 70 percent of ����AV's goods are transported by truck, while in Europe and North America only around one-third is transported by road in each case, with inland waterways and railroads otherwise being used more frequently.

As such, the new partnership will focus on designing more sustainable means of road transportation by truck, and evaluate the viability of certain solutions under specific scenarios.

This includes the experiment of using electric trucks, which are prohibited for the road transport of dangerous goods under Chinese and European laws, for the short-distance shuttling of non-dangerous chemicals – free of limitations regarding the range. The team is also trying biodiesel, whose prices are subsidized in Shanghai, in long-haul transport of dangerous goods. Other solutions the program is looking at include hydrogen fuel cell-powered trucks. Some of the experiments will be adopted in real cases with cost and benefit estimation in the first half of 2023 under the partnership.

"The idea is to pilot, adopt and scale up low-emission fuels, vehicles and more sustainable logistics solutions with optimal costs and even financial benefits through an open platform," says Samir Hifri, Senior Vice President, Supply Chain & Logistics Asia Pacific, ����AV. "We believe the supply chain could be an essential part for the chemical industry to achieve climate neutrality, and it’s crucial for us to find a balance between economics and emission reductions through such collaboration."

Under the partnership, efforts will also be made to standardize calculations and reporting of GHG emissions. Through these efforts, ����AV and its partners hope to create a transparent and reliable certification mechanism that promotes green logistics as a widely applicable business model in the industry.

Jason You, Senior Supply Chain Director of Sherwin-Williams Asia, said: "Sherwin-Williams is committed to satisfying customer needs through quality products, excellent service and a highly trained and professional workforce and is constantly seeking ways to become more sustainable. We are excited to work with ����AV and other leading partners on this challenge. We look forward to continuing to innovate and introduce more sustainably advantaged product solutions to our customers in China and across the globe."

Key to scope 3 emissions target

Earlier this year, ����AV announced that it is aiming to become operationally climate neutral – this includes reducing both direct emissions from its own operations (scope 1) as well as indirect emissions from purchased energy (scope 2) to net zero – by 2035. The company will be reporting its scope 3 emissions target next year.

"The MoU marks an essential step in ����AV’s planned announcement of the scope 3 emission target in 2023," says Zhong Xiaobin, Senior Vice President of the Coatings and Adhesives segment of ����AV in Asia Pacific. "We expect to provide an integrated offering that combines more sustainable products and logistics services, thus supporting our customers to meet their sustainability and climate-neutrality targets and moving towards a circular economy."

“We will have to cope with this unprecedented environment for the time being. We’re therefore using all the levers available to us to steer ����AV through the current situation,” said Dr. Markus Steilemann, CEO of ����AV. “In particular, the unparalleled price increases for fossil fuels show that ����AV’s strategic focus on becoming fully circular is the right path. Our products are vital in paving the way for a fossil-free future.” 

In view of the energy crisis in Europe and a weakening global economy, ����AV is systematically ensuring its economic ability to maneuver. The company is taking short- and medium-term cost-cutting measures, for example. ����AV has also initiated various measures to reduce its gas requirements in Germany and continues to work on making its processes even more energy-efficient. Technical optimization measures, for instance, are helping to improve energy efficiency in production. One example is the use of digital sensors to monitor steam traps, enabling ����AV to use steam as efficiently as possible in production. 

Full-year guidance for 2022 narrowed 

“The further significant weakening in overall economic conditions is also affecting our business performance. Despite the significant burdens from very high energy and raw material prices, we achieved our EBITDA forecast for the third quarter,” said Dr. Thomas Toepfer, CFO of ����AV. “Based on these results, we still expect to achieve the targets we have set ourselves for the full year as well.” 

����AV has narrowed the full-year guidance for 2022 that it issued on July 29, 2022, and now anticipates that EBITDA will be between EUR 1.7 billion and EUR 1.8 billion (previously: between EUR 1.7 billion and EUR 2.2 billion) and that the FOCF will be between EUR 0 million and EUR 100 million (previously: between EUR 0 million and EUR 500 million). Return on capital employed over the weighted average cost of capital is expected to be between minus two percentage points and minus one percentage point (previously: between minus two and plus two percentage points). GHG emissions measured as CO₂ equivalents are projected to be between 5.0 million metric tons and 5.4 million metric tons (previously: between 5.3 million metric tons and 5.8 million metric tons). 

Further milestones on the path to a circular economy 

����AV continued to press ahead with its vision of becoming fully circular in the third quarter of 2022 and achieved further milestones. As part of that, the Group is committed among other things to expanding its sources for alternative raw materials and thus eliminating the use of fossil resources, such as crude oil and natural gas, in the long term. 

Since September 2022, SOL Kohlensäure GmbH & Co. KG has supplied ����AV’s Lower Rhine sites with biogenic carbon dioxide (CO₂) under a supply partnership. This gas, which among other things is obtained as a by-product from the treatment of plant residues, is used by ����AV to produce plastics such as MDI (methylene diphenyl diisocyanate) or polycarbonate. SOL will supply up to 1,000 metric tons of biogenic CO₂ this year, enabling ����AV to save the same amount of CO₂ from fossil sources. The supply volume is to be increased substantially from 2023 on. 

����AV was also able to expand its portfolio of sustainable products in the third quarter. The launch of climate-neutral MDI and renewable TDI (tolulene diisocyanate) was followed in September 2022 by bio-circular polyether polyols – a sustainable component for polyurethane foams. ����AV uses renewable precursors such as organic waste or other residual materials to produce them, thus rounding out its range of components based on alternative raw materials for making rigid and flexible foams. These are used among other things as an efficient means of thermal insulation for buildings and refrigerators or, for example, in mattresses, upholstered furniture, car seats and shoes. 

Full circularity and cross-industry collaboration throughout the value chain are also the focus at the world’s largest plastics trade show , which ends on October 26th. ����AV is presenting innovative ideas and new technologies there in the fields of electrification, smart design, sustainable living and the circular economy – such as a new process to enable different materials in multilayer film packaging to be separated completely from each other, or a new, more sustainable concept for wallboxes, which are used to charge electric vehicles. 

Increase in sales in both segments 

Sales in the Performance Materials segment in the third quarter of 2022 rose by 6.6 percent compared to the prior-year quarter and were EUR 2.3 billion (previously: EUR 2.2 billion). The reasons for that were exchange rate movements and a higher selling price level. In contrast, a drop in total volumes sold – driven primarily by a downturn in demand – had a negative effect. The segment’s EBITDA fell by 92.5 percent to EUR 53 million (previously: EUR 708 million). This is mainly due to lower margins, since higher selling prices were able to offset the rise in raw material and energy prices only to a small extent. FOCF fell by 64.0 percent to EUR 93 million (previously: EUR 258 million), in particular due to the decline in EBITDA. 

Sales in the Solutions & Specialties segment in the third quarter of 2022 rose by 6.1 percent compared with the prior-year quarter to EUR 2.2 billion (previously: EUR 2.1 billion), mainly due to exchange rate movements and a higher selling price level. In contrast, the total volumes sold – due in particular to a downturn in demand – had a negative effect. The segment’s EBITDA rose to EUR 280 million, or by 26.7 percent compared to last year’s third quarter (previously: EUR 221 million). One of the reasons for this was lower provisions for short-term variable compensation. Margins remained stable at the last year’s level since higher selling prices were able to offset the rise in raw material and energy prices. FOCF increased by 25.0 percent to EUR 65 million (previously: EUR 52 million) due to the higher EBITDA. 

High price level in the first nine months of 2022 

Group sales in the first nine months of 2022 increased by 21.1 percent to EUR 14.0 billion (previously: EUR 11.6 billion). The main reasons for that were a high selling price level and exchange rate movements. The Group’s EBITDA in the first three quarters of 2022 fell by 31.7 percent to EUR 1.7 billion (previously: EUR 2.4 billion), mainly due to lower margins. This resulted from a considerable rise in raw material and energy prices, which could only be partly offset by a higher selling price level. Compared to the previous year, net income in the first nine months of 2022 fell by 52.3 percent to EUR 627 million (previously: EUR 1.3 billion). FOCF declined to EUR –412 million (previously: EUR 1.1 billion). This can be predominantly attributed to a lower EBITDA and an increase in funds tied up in working capital, especially given the payment of short-term variable compensation for the successful fiscal year 2021.

More information

• Please find a table showing key data for the third quarter 2022 in the sidecolumn.
   
• You can find the Quartely Statement Q3 2022 at
   
• The Annual Report 2021 is available at

"All our solutions under the umbrella CQ prove that we are continuing to work on making our vision of the circular economy a reality, to help customers and partners achieve their sustainability and climate goals. In this way, we also aim to meet consumer demands for more sustainable products," says Sucheta Govil, Chief Commercial Officer of ����AV. "And this is just the beginning. In the long term, ����AV also wants to offer every one of its products in a climate-neutral¹ version."

Evocycle^® CQ: a new name for all innovative recycling technologies and cycle designs of ����AV

Plastic waste is a valuable raw material and should not simply be disposed of. Therefore, ����AV is taking pride in proving that the path to circularity is possible for all stakeholders – and makes innovative recycling a priority. For the continuous evolution of recycling, the company now introduces the name "Evocycle^® CQ". It is an extension to the CQ label and stands for recycling technologies which enable the use of recycled plastics and recycled raw materials from the ����AV portfolio within a streamlined closed-loop system.

What’s more, the company is not active here alone, rather collaborating with partners from all fields of recycling and reuse to unlock its potential across the entire value chain. That’s how it transforms the industry turning waste into valuable resources, reducing the use of fossil fuels and significantly reducing CO₂ emissions.

The first initiative is called Evocycle^® CQ Mattress: ����AV, together with partners, has developed an innovative technology for the chemolysis of polyurethane flexible foams from used mattresses, in which both main components – the polyol and the precursor to the isocyanate TDI – can be recovered. With this, end of life mattress foams are directly transformed back into renewed polyurethane building blocks.

Since last year the company is operating a pilot plant at its Leverkusen site confirming the positive lab test results. And the journey continues: ����AV is working with recycling specialists such as Interzero and Eco-mobilier², as well as other partners along the value chain, to ultimately close the material cycle for polyurethane mattresses completely and on an industrial scale.

From mass-balanced raw materials to green hydrogen

Raw materials produced from biomass and, in particular, from biowaste and residual materials are also becoming increasingly important. ����AV relies primarily on the latter raw materials because they are available in large quantities and can be used to manufacture a wide range of plastics. Through mass balancing, they are offered in the same good quality as their fossil-based counterparts without customers having to change their processing operations. ����AV works with a number of suppliers who offer the raw materials using a mass-balance approach certified to the internationally recognized ISCC PLUS standard. The starting point also includes fossil raw materials, with the biological portions being allocated to the products by a third party audited allocation method.

����AV is thus converting its production to the use of alternative and, above all, mass-balanced raw materials, in some cases also using renewable energy from wind and solar power. Many of the company's sites are now also ISCC PLUS certified, including Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp, Filago, Shanghai, Map Ta Phut and Changhua.

Green hydrogen generated with the help of wind or solar energy also plays an important role for the chemical industry – both as an alternative raw material and as a source of clean energy. ����AV, together with partners, is committed to the urgently needed market ramp-up. The company uses hydrogen and its derivatives to produce high-performance plastics.

¹ Climate neutrality is the result of an internal assessment of a partial product life cycle from raw material extraction (cradle) to ����AV's factory gate, also known as cradle-to-gate assessment.
² The company "Eco-mobilier" has changed its name to "ecomaison" at the beginning of October 2022.

Manifold collaborations for innovative smart poles

In addition to material properties and functionality, the focus is increasingly on design options. A current example of this is a smart pole designed for future mobility and smart cities – an intelligent pole with multiple functions that ����AV is presenting at the plastics trade fair.

Smart poles must demonstrate stable performance even in harsh outdoor environments, while meeting high requirements for modern urban design, functionality and, not least, sustainable development trends. In addition to its own expertise and many years of experience, as well as a portfolio of suitable polycarbonate plastics and blends, ����AV therefore relies above all on intensive collaboration with technology and innovation partners in the development of such concepts, which include suppliers, customers, OEMs, start-ups, designers and universities.

This starts with product design: designs by students from Sweden's Umeå Design Institute were used to create the 5G small cell in the upper part of the smart pole. As part of a pilot project with this institute and Deutsche Telekom, ����AV investigated how a 5G network infrastructure could be implemented in an urban environment while taking aesthetic aspects into account. Polycarbonates are ideally suited for CMF (color, material, finish) design and enable interference-free transmission of high-frequency radio signals even in harsh weather conditions. To investigate the influence of material and CMF design under different conditions, ����AV operates state-of-the-art test facilities for a wide range of frequencies up to 50 GHz at its Asia-Pacific Innovation Center in Shanghai.

Together with the Umeå Design Institute, design concepts for electric charging stations for different usage scenarios have also been developed, one of which is the charging station design built into the base of the smart pole. Finally, as part of the modern urban landscape, the design of the smart pole must fit into the architectural and cultural context of the city in which it is installed. In addition to durability, the main focus here is on the weather resistance, flame retardancy, diverse light integration options and design freedom of the polycarbonates.

Circularity requires special partnerships

The value of such collaborations becomes even clearer when the complexity of the challenges increases: A circular world often requires the involvement of all partners along a value chain – industrial designers, raw material suppliers, plastics manufacturers, customers, disposers and recyclers. Only when all stakeholders are involved and work closely together can products be developed that can be recycled cleanly, reliably and affordably so that new products can be made from them.

����AV works with partners from industry and science at all stages of a product cycle to find solutions for a more sustainable future. The exchange takes place with both established companies and start-ups. ����AV will be showcasing the results of these collaborations at the K 2022 plastics trade fair.

In September 2022, Dr. Timo Slawinski, Managing Director of ����AV (Thailand) Co., Ltd. handed-over 100 set of the working suits made from upcycling plastic bottels from the “Hands for a Brighter World” campaign to Mr. Wirat Manassanitwong, Director of the Bureau of Environment and Bangkok Metropolitan Administration to provide to the road sweepers in Bangkok. Another 50 sets were given to Mr. Thawin Phothibuathong, the Mayor of Map Ta Phut Town Municipality for the use by Department of Disaster Prevention and Mitigation work at Map Ta Phut to increase the safety of officers while on duty. These safety suites are made from upcycling plastic bottles donated by ����AV’s employees and people in Bangkok.

����AV continues to strive to make the world a brighter place by driving a circular economy and optimizing the utilization of resources and producing plastics sustainably.

PU rigid foams with MDI provide very efficient thermal insulation in buildings and refrigeration equipment. The soft foams using TDI provide a lot of comfort in mattresses and upholstered furniture, as well as in car seats and shoes. And with these polyols, ����AV is now able to offer selective prepolymers for various adhesive applications. The introduced mass balance approach enables the gradual substitution of fossil-based raw materials by bio-circular alternatives, which further improves the sustainability in these applications.

����AV produces the polyether polyols in Dormagen, Germany, using the mass-balanced precursor propylene oxide from the shared site with in Maasvlakte, The Netherlands. There, the two partners produce propylene oxide and styrene monomer as part of a joint venture. Both of the above-mentioned sites are certified according to the internationally recognized ISCC PLUS standard.

"With the introduction of both main components for polyurethanes based on alternative raw materials, we have reached another important milestone on the road to climate neutrality," says Sucheta Govil, Chief Commercial Officer of ����AV. "We can now help customers in a variety of industries meet their climate goals and drive the transition to a circular economy. At the same time, we are reducing the CO₂ footprint in various value chains."

Customers can use the more sustainable polyether polyols and isocyanates as a drop-in solution, meaning the raw materials can be quickly and easily integrated into existing production processes without the need for technical modifications. The products offer the same good quality as their fossil-based counterparts and meet the demands from various industries looking for alternative raw materials. They can be easily distinguished from their fossil counterparts through the CQ suffix in the product name. CQ stands for Circular Intelligence and highlights ����AV´s products and initiatives around circularity.

 ¹ _{The more sustainable polyether polyol as well as the renewable TDI are produced with the help of the mass balance approach using renewable raw materials – from biowaste and plant residues – which are mathematically attributed to the product.}

² _{Climate neutrality is the result of an internal assessment of a partial product life-cycle from raw material extraction (cradle) to ����AV’s factory (gate), also known as the cradle-to-gate assessment. The methodology of our life cycle assessment, which has been critically reviewed by TÜV Rheinland, is based on ISO standards 14040 and 14044. The calculation takes into account the uptake of biogenic carbon. The calculation was based on preliminary data from the supply chain. No compensatory measures were applied.}

"We are very pleased that Map Ta Phut is another major ����AV production site to be certified according to ISCC PLUS," says Timo Slawinski, Managing Director and Head of the site. "With this, we are continuing to drive forward the replacement of fossil raw materials with alternative precursors." The company received its first shipment of the mass-balanced raw materials phenol and acetone from an Asian supplier in August, producing its first batch of biocircular ISCC PLUS-certified polycarbonate in Map Ta Phut very recently.

The certificate enables ����AV to supply a wide range of mass-balanced products such as Makrolon^® RE plastics and Makrofol^® films at the cross-segment site, which have a significantly lower carbon footprint than fossil-based products. The first-mentioned plastics are part of the CQ family of circular intelligent solutions from ����AV. With the new CQ concept, the company is highlighting the alternative raw material base in its products, giving a clear indication to customers looking for such products.

In the mass balance approach, for example, bio-based or recycled raw materials are fed in at an early stage of raw material extraction and mathematically assigned to the finished products. This saves fossil raw materials and reduces CO₂ emissions, while the quality of the mass-balanced products remains identical compared to purely fossil-based ones. With the drop-in solution, customers can continue to use their proven formulations, equipment, processes and specifications. At the same time, ����AV supports them in meeting their sustainability goals.

In addition to Map Ta Phut, ����AV's sites in Shanghai, Changhua, Leverkusen, Dormagen, Krefeld-Uerdingen, Antwerp and Filago have already been certified to the ISCC PLUS standard.

"By switching to mass-balanced renewable raw materials, we aim to significantly reduce our indirect emissions in the supply chain and offer products with a reduced carbon footprint," says Sucheta Govil, Chief Commercial Officer of ����AV. "In doing so, we’re helping our customers to meet their climate goals and advance the transition to a circular economy."

New label for circular intelligent solutions

Lily Wang, global head of the Engineering Plastics segment, emphasizes the further benefits for customers: "We offer them a drop-in solution that they can quickly and easily integrate into existing production processes without requiring any technical changes. The products show the same good quality as their fossil-based counterparts." As part of the CQ family of circular intelligent solutions, ����AV offers them under the names Makrolon^® RE, Bayblend^® RE, Makroblend^® RE, and Apec^® RE. With its new CQ concept, ����AV highlights the alternative raw material basis in products and thus gives a clear indication to customers who are looking for such products.

INVIRIDIS™ brand phenol and acetone are produced from bio-attributed cumene at INEOS’ Gladbeck and Antwerp sites – without competing with the food supply. Both sites are certified according to the internationally recognized ISCC PLUS as well as the RSB standard. The raw materials have a lower carbon footprint than petroleum-based products.

Certification by ISCC PLUS and RSB underlines INEOS’ strong commitment to working with the bioeconomy and reflects the strong sustainability of INVIRIDIS™.

Gordon Adams, Business Director of INEOS Phenol, said, "As part of our sustainability strategy, we have developed these more sustainable phenol and acetone products, which we have named INVIRIDIS™. This new product range provides our customers with drop-in product options that meet their stringent quality and performance requirements. At the same time, we’re moving the industry toward a more climate-friendly economy for phenol and acetone without compromising its unique product attributes."

The line, which represents an investment of more than EUR 27 million, will be capable of delivering more than 25,000 tons of high-quality polycarbonates and blends containing mechanically recycled content annually when it is planned to be commissioned in 2023. Overall, the company aims to be capable to deliver more than 60,000 tons of polycarbonates with recycled content in Asia Pacific per year until 2026.

"The MCR production line is another exciting step we have taken to fulfill our commitment toward a circular economy and achieve our goal to become operational climate neutral by 2035," said Sucheta Govil, Chief Commercial Officer of ����AV. "Recycling plastic waste is absolutely essential to the circular economy, and addresses one of the major global challenges we face together as a society. We will continue to invest in expanding and improving our capacity for recycled plastics, and leading the industry to create materials with higher recycled content." 

"To meet the rapid growth in demand for more sustainable and circular solutions from our downstream customers, we will continue to invest in expanding our capabilities," said Lily Wang, Head of ����AV’s Engineering Plastics segment, at the groundbreaking event. "This MCR production line is the latest example of our efforts in this regard and signals our commitment to driving the transition to more sustainable products in this region, especially in China."

Repurposing a compounding facility in Thailand for the ASEAN market

����AV will also be repurposing an existing compounding line at its Map Ta Phut site in Thailand to a plant for mechanical recycling. The conversion of the plant is scheduled to be accomplished by the end of 2022 and continue to pave the way and meet market demand for polycarbonates from post-consumer recycled (PCR) content across multiple industries in the ASEAN region. Based on the current forecast, the unit will supply up to 10 percent PCR based product of its annual production volume by 2030.

Dr. Nicolas Stoeckel, Head of Operations in the Engineering Plastics segment, said: "The new developments in China and Thailand are not only about investing in capacity increase, but also about improving our capability to produce more products with higher recycled content and more consistent quality. These developments will further strengthen Asia’s reputation as the world’s leading producer of polycarbonate PCR grades."

The two facilities in Shanghai and Map Ta Phut will boost ����AV’s output of PCR polycarbonates Makrolon^® R and Bayblend^® R, which contain up to 75 percent recycled content and can contribute to a carbon footprint reduction of up to 50 percent while meeting performance and eco-labels’ requirements.

The EV Hackathon provides university students with an opportunity to gain new knowledge in electric vehicle technology through various intensive training program. It also acts as a platform for students to develop and present their creative ideas for improving electric vehicles by applying technology, business, and management mindsets to their projects.

����AV demonstrated its commitment and expertise in this topic by acting as one of the experienced speakers in the training seminar on the topic “Innovative Materials for EV Mobility”. With up to 100 creative ideas submitted, ����AV with the role as one of the judges in the competition reviewed 16 teams as part of the semi-final stage, selecting eight to go through to the final round. It will also join a judging panel for the final round (a live 24-hour hackathon event) on Aug 27-28 at King Mongkut’s University of Technology North Bangkok (KMUTNB).

"Thailand will soon be ready to enter the Asian electric vehicle production base as part of the Government's 30/30 policy, which aims to produce ZEVs (Zero Emission Vehicles). We hope to play a role in supporting and driving its foundation by embedding sustainability and technical knowledge in the next generation and encouraging them to apply it in the real world” mentioned Ms. Cholthee Chandrachoti, Head of Mobility ASEAN, who represents ����AV as a judge in this event.

The EV Hackathon strongly aligns with ����AV's own ambition on  sustainability goals by driving innovation and the action towards the goal on climate neutrality. The company is also committed to continuously supporting the UN Sustainable Development Goals (SDGs)

Dr. Timo Slawinski, Managing Director of ����AV (Thailand) Co., Ltd. said: “The EV Hackathon complements ����AV's efforts toward climate neutrality and sustainability goals. We want to empower and inspire young people to be creative as they become tomorrow's innovators for a more sustainable world.

“I want to thank the organizers and all the project partners for creating such a great opportunity that gives young Thai people a chance to share their ideas and grow to their full potential.”

More information about the hackathon, see
For more information about ����AV, see 
Follow us Facebook: 

“We can look back at what was overall a solid second quarter, and we even slightly surpassed our EBITDA forecast. Nevertheless, we are looking ahead to an increasingly challenging second half of the year. The current geopolitical situation shows us all too clearly that there is no alternative to the transformation toward a sustainable, fossil-free industry landscape,” said Dr. Markus Steilemann, CEO of ����AV. “With our vision of becoming fully circular and our ambitious climate targets, we are underscoring our position as a forerunner on the path toward a climate-neutral future.”

Full-year guidance 2022 adjusted

The Russian war against Ukraine has fundamentally changed the geopolitical situation and caused extensive consequences for the global economy. The Group therefore expects continued impacts on global supply chains, very high energy price levels, high inflation and weaker growth in the global economy. 

As a consequence of a recent significant further increase in energy costs and a further weakening global economy, ����AV adjusted its outlook for the current fiscal year on July 29, 2022. The Group anticipates that EBITDA will be between EUR 1.7 billion and EUR 2.2 billion (previously: between EUR 2.0 billion and EUR 2.5 billion) and ROCE above WACC between minus two and two percentage points (previously: between one and five percentage points). The FOCF is now expected to be between EUR 0 million and EUR 500 million (previously: EUR 400 million and EUR 900 million). ����AV expects greenhouse gas emissions to fall to between 5.3 million and 5.8 million metric tons (previously: between 5.5 million and 6.0 million metric tons). The Group anticipates EBITDA for the third quarter of 2022 will be EUR 300 million to EUR 400 million.

“In the second quarter we benefited from a faster than expected recovery after the lockdowns in China and an intact demand for our products,” said Dr. Thomas Toepfer, CFO of ����AV. “In this second half of the year, the macroeconomic risks have once again increased significantly, particularly with regard to the very high energy costs and uncertainties in gas supply at our German sites."

The company’s German sites account for around a quarter of global production capacity. ����AV is initiating various measures to reduce its gas requirements in Germany in the short term, such as by switching to oil-based steam generators. In addition, the company is continuously working to improve existing production technologies and roll out new ones in order to further reduce gas and energy consumption. If gas supplies are rationed in the further course of the year, this could result in partial load operation or a complete shutdown of individual ����AV production facilities, depending on the level of the cutback. Due to the close links between the chemical industry and downstream sectors, a further deterioration of the situation is likely to result in the collapse of entire supply and production chains.

Continued focus on the circular economy and climate neutrality

����AV has implemented further measures to drive its vision of becoming fully circular and achieving climate neutrality by 2035. In May 2022, for example, the company launched “CQ” – “Circular Intelligence”, a new concept that makes circular solutions in the product portfolio even more visible to customers. That means ����AV will in the future highlight the alternative raw material base for its products if it is at least 25 percent. One of the first “CQ” products is Desmodur^®CQ. Polyurethanes based on Desmodur^®CQ are used in upholstered furniture, mattresses or thermal insulation, among other things.

In June 2022, ����AV also opened a new Wind Technology Center in Leverkusen, where the company is conducting research into material solutions for sustainable energy generation from wind power. The focus is on faster and more cost-effective production of rotor blades and optimization of their blade properties. In this way, the service life and thus also the energy yield can be increased in order to drive the expansion of alternative energies.

Both segments post sales growth

Sales in the Performance Materials segment in the second quarter of 2022 rose by 25.8 percent compared to the prior-year quarter and were EUR 2.5 billion (previous year: EUR 2.0 billion), in particular on the back of a higher selling price level. Logistical bottlenecks caused by lockdowns due to the pandemic in China limited the segment’s further growth particularly in the APAC region. EBITDA in Performance Materials fell by 43.0 percent to EUR 367 million (previous year: EUR 644 million), mainly due to lower margins. The free operating cash flow fell to EUR –37 million (previous year: EUR 373 million), largely due to the lower EBITDA and an increase in funds tied up in working capital.

The Solutions & Specialties segment posted an 11.0 percent increase in sales to EUR 2.2 billion in the second quarter of 2022 (previous year: EUR 2.0 billion). A rise in the selling price level and exchange rate effects helped increase sales. The segment’s EBITDA fell to EUR 213 million, or by 10.1 percent compared to last year’s second quarter (previous year: EUR 237 million). This was mainly due to a decline in volumes sold and lower margins. The free operating cash flow of Solutions & Specialties fell to EUR –139 million (previous year: EUR 29 million), likewise due to an increase in funds tied up in working capital.

High selling price level impacts first half of 2022

Group sales in the first half of 2022 increased by 29.2 percent to EUR 9.4 billion (previous year: EUR 7.3 billion). That was due to a higher selling price level, exchange rate movements and the portfolio change arising from the acquisition of the Resins & Functional Materials (RFM) business from DSM. Due to higher raw material and energy prices, which however were able to be partially offset by the higher selling price level, the Group’s EBITDA in the first half of 2022 declined by 13.3 percent to EUR 1.4 billion (previous year: EUR 1.6 billion). Net income in the first half of 2022 was EUR 615 million (previous year: EUR 842 million), while the FOCF fell to EUR –445 million (previous year: EUR 692 million).

More information

• Please find a table showing key data for the second quarter 2022 in the sidecolumn.
   
• You can find the Half-Year Financial Report 2022 at
   
• The Annual Report 2021 is available at

Dr. Timo Slawinski, Managing Director of ����AV (Thailand) said, “����AV’s mission is to promote innovation and growth with profitable products and technologies that benefit society while reducing the impact on the environment. We would like to pass over value and sustainability to our future generation, therefore, we make every effort to align our vision on the direction of circular economy. By creating new ideas and innovations that benefits to reserving and making most use of the natural resources that is being scarce, bringing them back to the loop, reducing impact from plastic wastes and promoting reduction of greenhouse gas emission throughout the value chain.

In March, ����AV announced our 2035 Climate Neutrality Target, therefore, our campaign, “Hands for a Brighter World” shares a common vision and goal with the “Bangkok Magic Hands” project. This initiative comprises two of ����AV’s core values together: commitment to safety and sustainability, enabling us to turn waste into value. The results are road sweeper personal safety devices – high-visibility suits made from recycled plastic bottles - for the BMA and the Map Ta Phut Municipality.”

Ms. Khawissara Wattanapisit, Head of Communication ASEAN ����AV (Thailand), said, “The Hands for a Brighter World project is one of the latest social activities to reiterate ����AV vision for sustainable business operations under the circular economy concept to protect our limited resources. We are committed to minimizing our carbon footprint seriously to reduce the impact on climate change which, in turn, creates opportunities for future generations in the long term. This project is an outstanding example of collaboration among multiple stakeholders who are aware of the problems and working together to reduce the plastic waste problem. This collaboration not only promotes sustainability at the community level but also contributes to national and global levels. To achieve our common targets, one hand or party cannot succeed on its own, but collaboration is needed – this is where the project name stems from."

Mr. Wirat Manassanitwong, Director of the Department of Environment, BMA, revealed, “The BMA top environmental policy is to achieve Net Zero greenhouse emissions and this is well supported by the private sector, hence the creation of this network. The BMA currently encourages the private sector to collaborate on 4 types of activities: renewable energy, green zone expansion by tree planting, waste reduction & management, and traffic management. Recently we organized Earth Hour in March as 1 of 190 countries around the world to switch to electricity at night to raise awareness of energy conservation. We are also campaigning waste pollution prevention with 17 districts on the Chao Phraya river, aiming to reduce littering in the river, and have so far held activities in 3 districts.

At present, a number of corporations have volunteered to plant trees in BMA public areas or requested the BMA to arrange for areas in support of the BMA Governor's 1 Million Tree Planting Policy. The "Bangkok Magic Hands" project" is a collaboration of several parties with the BMA acting as the middleman in arranging for locations where donors can contribute. We are pleased that ����AV offer plastic waste sorting stations that are attractive and interesting to the public which helps promote actual waste sorting from all. We plan to use some of the collected PET bottles, upcycle them into PPE, and if they are can achieve existing safety standards and comfort requirements, then we will offer them to our road sweepers."

����AV is among the leading global polymers manufacturers with a vision to create a better world by driving a circular economy and optimizing the utilization of resources. We produce plastics sustainably, drawing on the benefits of alternative raw materials and renewable energies. To realize our vision we are committed to reducing plastic wastes and airborne emissions, as well as improving waste management. Moreover, we strive to innovate new technologies to recycle discarded products and materials and turn them into raw materials once again.

����AV in Thailand is committed to raising environmental protection awareness among the youth through the regular organization of educational activities and the publication of educational materials. This includes the booklet series titled "Bright Minds for a Brighter World" for primary schools in Thailand to educate the importance of waste sorting under the circular economy concept. We also organize workshops for teachers on environmental management both in Bangkok and Rayong.

In this project, ����AV, one of 13 awardees, will support 100,000 low-income people in Vietnam, Lao People Democratic Republic and Cambodia to enhance their income though the use of ����AV polycarbonate solar dryer domes in the post-harvest processes. Key interventions are holistic:  partial seeding fund for communities for solar dryer dome construction, training for farmers in food processing and handling, finally linking smallholder production with value-added food markets. By reducing post-harvest losses and improving added-value into agro-products, the project will foster benefit sharing for farmers.  The goal is to contribute to the transformation of smallholder farms from subsistence operations into profitable, commercially oriented businesses as well as strengthening their links to growing food markets. 

In May 2022, ����AV Inclusive Business Development Manager Mai Pham Phuong (Ms.)  participated in the first Bootcamp in Bangkok, together with the other South and South East Asia grantees from the two cohorts, the hub team and USAID Secretariat, gathering as a tight-knit group to share ideas, engage in value-based discussions and build new skills to create lasting change. The three-day Bootcamp include ‘unconferenced’ session exploring how to impact more farmers, improve operation and access investment, and included an interactive session on investment readiness, KPIs, gender equality and sustainability. All participants shared and promoted innovative techniques to increase their visibility and meet other grantees sharing the same vision and like-minded in the region. The last day was for exploring partnerships that can catalyze investment, increase impact for smallholder farmers and improve access to climate – resilient innovations.

During the Bootcamp, ����AV also shared the Inclusive Business mission and our way to realize toward the People, Planet, Profit value.  B Veeralakshmanan, Head – IB India and SEA is proud of the achievement.  “Winning this important grant testifies to how the cooperation between sustainability stakeholders can benefit the underserved community.  Our key to success in reaching our sustainable social transformation goals is the alignment we strive for between organizations in benefiting the people and planet.  Inclusive Business is well on track to keep our date with 2025 on impacting 10 million underserved people.”

Among the rich talent seen across the winners, it was heartening to see many Indian grantees, including our partner S4S Technologies.  We are thus able to step up our visibility and credibility in this domain, as well as seek out new partners on our onward journey of expansion in width and depth.  In the coming months, India and Vietnam will be working closely to successfully implement the project with WE4F and expect to increase our handprint in new arenas of under-represented farmer communities.  We are indeed 1 for the good of the people!

Good haptics and durability with high color intensity

Digital textile printing enables economical production of small batches, shortens time-to-market, and reduces waste volumes by up to 85 percent compared to analog printing technologies. PU dispersions are currently establishing themselves in the production of inks for digital inkjet printing processes because, among other things, they enable a stable printing process due to their low viscosity and particle size. With Impranil^® DL 1602, ����AV is launching a new anionic, aliphatic-based PU dispersion that can be used to formulate water-based pigment inks for digital inkjet printing. The dispersions show excellent stability at high shear rates. They produce very finely divided ink dispersions with good jetting behavior that are characterized by high re-solubility. "This minimizes the risk of the pressure nozzles becoming clogged. Long and therefore economical runtimes in printing are the result," explains Dr. Inga Bargende, Digital Printing Expert at ����AV. Other strengths of PU-based inks include good abrasion and rub resistance and high color and wash fastness.

Long pot life and high grain stability

The new INSQIN^® 2K PU system consists of Impranil^® HS 1062 and Imprafix^® IO 3330. It mainly targets synthetics for car interiors. The High Solid system does not require blocking agents. "Nevertheless, it is characterized by long pot lives during processing. This means, for example, that the processor does not necessarily have to use PU mixing heads. It also gives the grain a high degree of stability and is particularly resistant to hydrolysis," explains Michaelis. Potential applications include instrument panels, seats, door panels, or steering wheels.

Certificate for TPU films free of harmful substances

Several TPU (thermoplastic polyurethane) films in ����AV’s Dureflex^® product line have now been certified to the 100 by OEKO-TEX^® standard. The films are breathable, waterproof, tear-resistant and, above all, kind to one’s skin. That makes them the material of choice for sports articles and outdoor clothing, but also for furniture and seat covers for cars. In 2019, several Platilon^® brand TPU film grades have already been certified to the standard.

����AV will also be showcasing its partially biobased Platilon^® H2 EC hotmelt film at Techtextil. "It exhibits excellent adhesion during lamination, is very heat resistant and easy to process. Applications include textile labels, sealing strips, laminates made of glass and aluminum, and conductive tracks for the textile and automotive industries," explains Dr. Elmar Lins, Segment Manager Consumer & Industrial Solutions Specialty Films for the EMLA region.

Techtextil will be held at Messe Frankfurt from June 21^st to 24^th, 2022. ����AV’s booth in Hall 11 is number D12.

"The development of these resins is very important to us. After all, it contributes to the expansion of alternative energies and strengthens our strategic orientation to sustainably reduce the CO₂ footprint and take even more steps towards climate neutrality," explains Klaus Franken, Head of Application Development Wind and Pultrusion at ����AV. "To be competitive, the wind industry faces the constant challenge of reducing the Levelized Cost of Electricity. We can help here by enabling our customers to produce rotor blades faster and thus more cost-effectively. At the same time, higher energy yield through optimized blade properties and longer service life also play a role."

Close cooperation with customers

One goal of the Wind Technology Center is to develop robust materials that combine the properties important for rotor blades, such as strength, stiffness and temperature resistance. Existing products are continuously optimized and completely new formulations are developed and tested. Another goal: application technology development in close cooperation with customers. Klaus Franken explains: "Here we can simulate our customers' manufacturing processes and show how our PUR resins help them to realize both their rotor blade designs and the manufacturing process in the best possible way."

����AV attaches great importance to optimally tailoring its products to the needs of its customers. That is why a number of cooperative ventures with European and Asian wind turbine manufacturers are already in place. The focus here is on constructing and testing prototypes.

The high-tech center is located in Leverkusen and was completed and put into operation at the beginning of this year. It comprises two interconnected units: a laboratory area for chemical development and an Upscaling Plant. The latter is home to processing technology and application development.

Development and application go hand in hand

The center offers clear advantages: "Chemical development and application technology can work hand in hand here. On top of that, the physical proximity makes it easier to exchange information directly and quickly. We use identical resources and the same infrastructure and quickly obtain a comprehensive depiction of the process. This helps us to pursue our goals in a results-oriented manner and without losing knowledge, and enables us to offer new, innovative solutions to our customers," explains Technical Center Manager Frank Grimberg. "Process and plant safety, explosion protection, machine safety and, of course, occupational safety are always in the spotlight here," explains Tobias Wollersheim, who as Project Management was responsible for planning and implementing the investment.

Another positive aspect: with the innovative technology center, ����AV is increasing its attractiveness as an employer. Indeed, wind technology offers a wide range of new, interesting fields of work that arouse curiosity and offer diversity. ����AV has taken on a newly qualified chemical technician from its own training program to operate the machines. He is being intensively trained in the processes and machine technology.

This much is clear: Things are moving in the area of wind energy.

Quotes

����AV is using the trade show to target designers and CMF professionals and make its developments tangible. "Together with these important target groups, we are also developing scalable design solutions with a focus on circularity and higher volume production," says Dr. Christopher Stillings, Head of Color & Design in the Engineering Plastics segment. "For inspiration and to start the dialogue, we offer them various aesthetics toolkits that explain the visual and tactile properties of our polycarbonates and other materials, and also introduce 24 trendy colors." The six Color & Design Centers that the company operates worldwide are also located close to customers.

On the road to a circular economy

The vision of ����AV is to become fully circular, and to this end it offers its customers climate-neutral¹ polycarbonates and polyurethane raw materials, but also develops innovative recycling technologies and engages in the reuse of recycled post-consumer plastics.

New polycarbonate grades are carbon-neutral from cradle to factory gate¹, thanks to the use of renewable electricity for production processes at ����AV and the introduction of raw materials derived from mass-balanced biowaste and residual materials. The plastics offer equally good quality as their fossil-based counterparts and can be seamlessly integrated into customers' existing production processes without compromising on quality.

Thermoplastic polyurethanes (TPUs) have proven to be versatile materials in a variety of applications, from electronic devices to sporting goods. ����AV aims to make the products more circular and is working with partners in the value chain to achieve this. The current range includes partially bio-based raw materials, mass-balanced as well as recycled TPUs.

Due to the good recyclability of TPU, ����AV is expanding its portfolio of recycled grades. Together with Dutch customer Fairphone, the company developed circular material solutions for its Fairphone 3 and 4 models based on fully and partially recycled TPU and polycarbonate grades. 

New trend reports for color, material and finish

On June 10, ����AV will unveil the second edition of its CMF (Color, Material, Finish) trend reports in collaboration with the renowned Shanghai Tongji University, Shanghai Jiaotong University and the Good Matter Design agency. The three trend reports for the automotive, electrical and electronics as well as healthcare industries look at global trends in consumer lifestyles. The trend studies show how the key themes for 2022 and 2023 can be translated into targeted CMF strategies and designs using ����AV products.

¹ The "climate neutral" rating is the result of an assessment of a subsection of the entire product life cycle. The section from resource extraction (cradle) to ����AV's factory gate was considered. The assessment is based on ISO standard 14040 and was critically reviewed for plausibility by TÜV Rheinland.

����AV intends to focus entirely on the Circular Economy. The company is driving the development of innovative and resource-saving processes to make its products recyclable to meet this goal. That is why ����AV intends to offer more material solutions based on sustainability and circularity in the markets in which it is active. ����AV's own technological development is focused on four recycling approaches. In addition to mechanical recycling, which is already used for the high-performance plastic polycarbonate and thermoplastic polyurethane (TPU), ����AV is developing chemical recycling processes: These include chemolysis, smart pyrolysis and enzymatic recycling. The aim of these processes is to produce recycled plastics in virgin material quality while significantly reducing the environmental footprint compared to the conventional fossil-based production of polymers and polymer raw materials. ����AV applies its core competence in chemistry to process development.

"We see ourselves as the driving force behind the Circular Economy industry that is currently being developed, where the chemical and waste management industries will have to grow closer together in perspective and synergies will have to be created," explains Markus Steilemann, Chairman of the Board of ����AV. "We are moving forward here with vigor for the entire industry: with various recycling approaches, we can systematically recover the different raw materials we need for the production of our plastics. Our goal is to fully circularize materials from end-of-life products to save fossil raw materials and greenhouse gas emissions, while offering recycled high-performance materials in virgin quality." The company plans to invest around one billion Euro in Circular Economy projects by 2030. In Leverkusen, ����AV already operates a pilot plant for the chemical recycling of flexible polyurethane foams.

In addition, ����AV will showcase how circular solutions in the product portfolio can be made even more visible to customers at IFAT in Munich. With the "CQ" concept, in the future ����AV will highlight the alternative raw material base in products if it is at least 25 percent. "CQ" here stands for Circular Intelligence. Among the first "CQ" products is Desmodur^®CQ. Polyurethanes based on Desmodur^®CQ are deployed, for example, in upholstered furniture, mattresses and thermal insulation. They are used, for example, as coatings for cars or household appliances.

 "In order to take meaningful climate protection measures, we need a change, a paradigm shift, for us, our customers and everyone else in the entire value chain. At the same time, the benefits must be clear in the application of such solutions. The chemical industry must fundamentally change as a central part of the value chain - toward alternative raw materials and renewable energies," says Sucheta Govil, Chief Commercial Officer at ����AV. "We have set ambitious targets to make our production fully circular and ultimately independent of fossil resources. In doing so, we are supporting a wide range of industries to reduce the carbon footprint of their own products," Govil said.

Cooperations provide contribution to full Circular Economy

New recycling processes and cooperation with partners from industry and research are making an important contribution to achieving full circularity. For example, ����AV is coordinating the EU project "CIRCULAR FOAM" with 22 partners from nine countries. The aim of the project is to develop innovative chemical recycling processes for rigid polyurethane foams. As an insulating material, rigid polyurethane foams contribute to the energy efficiency of refrigerators and buildings - but coordinated waste management and suitable recycling processes are still lacking for a sustainable life cycle. Chemical recycling could save up to one million tons of waste and 2.9 million tons of CO₂ annually from 2040.

Markus Steilemann and Sucheta Govil at IFAT

To kick off IFAT on Monday, May 30, 2022, Sucheta Govil will be a guest on the show's opening session. The topic will be the role of environmental technologies for a more sustainable future. Participants will include founder Mikela Druckman, an expert on AI in recycling and a member of the WEF Global Future Council; Prof. Dr. Erich Zahn, co-author of the Club of Rome report "The Limits to Growth"; Dr. Johannes Kirchhoff, Board of Management of the Circular Economy Initiative from the Federation of German Industries; and Ren Xiaoyuan, (UNEP) Young Champions of the Earth 2020 and founder of the water information network MyH2O.

CEO Markus Steilemann will discuss the topic "Global Value Creation in the Crisis? The Circular Economy as Europe's Response" on a BDI panel on Tuesday, May 31, at 2:15 p.m. with Delara Burkhardt, environmental policy spokeswoman for the Socialists and Democrats delegation in the European Parliament, Dr. Christoph Epping, head of the Circular Economy subdivision at the German Federal Ministry for the Environment, Nature Conservation, Nuclear Safety and Consumer Protection, and Wolfgang Niedermark, member of the BDI's Board of Management. On Wednesday, June 1, Markus Steilemann will give an introduction at 12:15 p.m. to the panel discussion "Chemistry for circular mobility: Chemical recycling as a building block of circular value creation for automotive?" with experts from Audi, ����AV and TU Dortmund University.

����AV at IFAT 2022 in Munich, Germany

• DGAW booth (Hall/Booth: A6 125/224) and VCI booth (Hall/Booth: A6 231)
• Monday, 30 May, 11:50 a.m. - 1 p.m.: Opening panel "How to create change?" - From activism and politics to environmental solutions and impacts" with Sucheta Govil (Forum Water Hall C3. 139/238)
• Tuesday, May 31, 2:15 p.m., (Hall C6, Room C62a, BDI Initiative Circular Economy), and Wednesday, June 1, 2022 (12:15 p.m., Hall A5 | 317/416 | Waste / Secondary Materials Forum): Markus Steilemann visits IFAT

Wearable patch sensors (smart patches) are rising in popularity, as they offer a wide range of options for medical diagnosis. Current trends include enhanced convenience, even more functions, and ongoing miniaturization. What's more, the public is demanding more sustainable solutions and a move away from disposable products. Together with its partner accensors, ����AV has developed a smart patch consisting of two elements: The disposable patch, which contains the sensors, and the ReUse patch, which contains the electronics. This makes it possible to reuse the valuable electronic parts.

Efficient production of wound dressings

The production of wound dressings and plasters, as well as medical wearables, involves a multi-stage process. The combination of a polypropylene (PP) backing with blown films from the Platilon^® range made of thermoplastic polyurethane (TPU), in particular, is now proving to be well suited to satisfying today's high demands for process efficiency and ease of use in wound care. In comparison to the production of paper backings, the generation of dust in the production process is significantly reduced.

Breathable wound dressings to prevent bedsores

In the case of prolonged disease progression, it is important to prevent bedsores (pressure ulcers). ����AV has developed a concept for a prevention dressing that addresses the three most important factors for bedsores: Pressure, friction and shear. A highly breathable prototype is made exclusively from ����AV polyurethane materials.

The key features of this prototype wound care dressing made from Baymedix^® and Platilon^® materials are:

• Optimized friction, shear and pressure management
• Excellent moisture management to support a healthy microclimate
• Application- and skin-friendly polyurethane adhesive
• Efficient and sustainable manufacturing technology

Extra matte films for increased wear comfort

The PP backings can also be combined with multilayer Platilon^® TPU films, for example, to achieve individual properties such as a specific surface finish. TPU blown films offer a wide range of surface qualities from silky to extra matte. In particular, Platilon^®XM films offer an extra matte, skin-like surface and a soft feel that offers increased comfort for patients. Medical products made with the low-friction Platilon^® XM films adhere to the skin longer because friction against textiles is minimized. This, in turn, prevents premature changes of dressings and plasters. Owing to its soft surface feel, the film feels like a second skin. It is used in wound dressings, plasters and other medical products that require high breathability.

More than 50 years of manufacturing experience of ����AV have also played a key role for this development. Going forward, solutions sourced from sustainable materials will be a key component of their overall portfolio. Sustainable coating resins represent an attractive growth market that aligns with the ultimate goal of the company to move to a fully circular economy, meeting the world’s materials and coatings needs while reducing reliance on fossil fuels. ����AV is excited to collaborate with its customers on the journey to the circular economy as new material solutions transform urbanization, mobility, and their impact on climate change.

Alternative raw materials made using biotechnology

One of the most exciting results is the fruit of work of the company with pioneering biotech company to successfully produce the first significant volumes of a plant based version of HMDA (hexamethylene diamine). HMDA is a key precursor for several coatings, adhesives, and a widely used type of nylon (nylon-6,6). 2 million tons of HMDA are used each year, but until now it has been manufactured exclusively from fossil feedstocks. This new process is expected to be able to produce ton-quantities of high-quality material in the near future, helping the automotive, construction, furniture, and textile industries become that much more sustainable going forward.

"Our partnership on this innovative technology allows us to significantly reduce our dependence on fossil feedstocks," said Martin Vlak, Head of Sales & Market Development – North America Coatings & Adhesives at ����AV. "With a purely plant-based HMDA, we can significantly advance our corporate objective of CO₂-neutral production."

Several examples of ����AV’s sustainable products are on display in their booth (#2529). ����AV will be showing off Desmodur^® eco N 7300, an isocyanate clearcoat hardener whose carbon content is 70 percent sourced from biomass instead of fossil fuels. This sourcing reduces the carbon footprint of the hardener by around 30 percent, compared to conventional solutions using the same application process, with no compromise in performance or quality.

Partially bio-based resin for high-traffic flooring

A third product, Decovery^®, is an up to 52 percent partially plant-based flooring resin. ����AV has long experience in resin technology for flooring. Their engineers know better than anyone how traditional bio-based paints have struggled to meet the tough criteria required for high-traffic flooring. Extensive testing has shown that Decovery^® has equal performance in durability, chemical resistance and wear resistance when compared with current fossil-based products in the market.

"The emerging line of sustainable and plant-based products of ����AV is the result of our long-term goal of becoming the leading provider of sustainable coating solutions," says Vlak. "Markets are increasingly asking for more environmentally compliant products based on renewable raw materials without compromising functionality. But it’s about more than growth from a margin perspective. It’s about growing sustainably with the right kind of product innovation that brings us to carbon-neutral production. A truly circular economy is within our reach if we remain committed to this level of focus and innovation."

For ����AV, offering renewable TDI via mass balance is only a logical next step of making this important chemical raw material even more sustainable, as Dr. Klaus Schäfer, Chief Technology Officer of ����AV, explains: "Already years ago, our unique gas phase technology was a milestone towards more energy efficiency in the production of TDI. After that we committed ourselves to ensure a further reduction in emissions from our production by switching to green electricity. This additional improvement now makes it clear how consistently we are pursuing our path to climate-neutral production³ and the circular economy: By using mass-balanced renewable raw materials, we are now also striving to significantly reduce our indirect emissions in the supply chain and to offer products with a reduced carbon footprint."

"With our shift to mass-balanced products, we are helping customers in various industries achieve their climate targets and drive the transition to a circular economy," says Sucheta Govil, Chief Commercial Officer of ����AV. "At the same time, we are strengthening the use of alternative raw materials and reducing CO₂ emissions along various value chains." Customers can use this TDI as a drop-in solution, meaning it can be implemented rapidly and easily in existing production processes without the need for technical modification.

Flexible PU foams made with TDI and long-chain polyols are important materials in the manufacture of seat cushions and mattresses. Renewable TDI meets demands for more sustainable production while ensuring the good quality, optimal comfort and high breathability known from fossil-based TDI. It also meets the expectations of the automotive industry, which is looking for alternative raw materials for car seat cushions with a lower carbon footprint.

Sinomax as pioneer for more sustainability

Only late last year, ����AV signed its first commercial supply contract with Sinomax, a global manufacturer and distributor of polyurethane comfort products based in China. Both companies share a clear commitment toward the circular economy, and Sinomax wants to be the first customer to use the new TDI to reduce its CO₂ emissions. The mass-balanced TDI required for this is supplied by the ISCC PLUS-certified Shanghai site of ����AV. Thanks to its global presence, the company can also supply larger amounts of mass-balanced TDI.

In this mass balance approach, raw materials derived from biomass or waste are fed in at an early stage of raw material extraction and mathematically attributed to the finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of the mass-balanced products remains the same compared to purely fossil-based ones. Manufacturers can continue to use their proven formulations, equipment and processes, meanwhile gradually transforming their product portfolio towards a more sustainable one and achieving their climate targets.

_{¹ The renewable TDI is produced with the help of the mass balance approach using renewable raw materials - from virgin biomass and bio waste and residues - which are mathematically attributed to the product.}

_{² According to an internal assessment of a partial product life cycle from raw material extraction (cradle) to the factory gate (of ����AV), also known as cradle-to-gate assessment. The methodology of our LCA is based on the ISO 14040 and 14044 standards. The calculation takes into account the biological origin of the carbon based on preliminary data from the supply chain. No compensation measures were applied.}

_{³ The term “climate-neutral production” refers to the ����AV target of reducing scope 1 and scope 2 emissions to zero by 2035.}

"This is good news for anyone who wants to maintain an athletically active, healthy lifestyle in the most environmentally friendly way possible," says Tony Wu, Global Marketing Manager, Textile Coatings, ����AV. He emphasizes that the increased sustainability achieved does not compromise the durability, appearance or comfort of the footwear upper. In combination with Huafeng HAPTIC® printing technology, 3D shapes can be applied to textile fabrics creating trendy designs and high performance in athletic footwear. 
 

Impranil® eco DLS, as a partially bio-based binder, is part of the INSQIN® range of waterborne textile coating resins. Its use contributes to reduced greenhouse gas emissions with around 60 grams of CO₂ equivalents per pair of shoes. The value comes from internal calculations verified by independent external experts. It is obvious that the difference in the CO₂ footprint becomes even greater when solvent-based PU textile coatings are used for comparison. The use of fabric based on recycled PET yarns mitigates greenhouse gas emissions by about 170 grams of CO₂ equivalent per pair of shoes.

To share the experience and findings with the industry, ����AV, Huafeng and Cyclone jointly hosted a webinar globally to introduce the three technologies and the synergy created from this co-development. The recorded webinar can be accessed .

"Sustainability is key to our market success at Huafeng. With the help of the partially bio-based PU dispersion of ����AV, we were able to introduce more renewable ingredients into our HAPTIC® coatings, further improving their sustainability," says Dr. Thomas Schmidt, Director of Innovation at Huafeng. Dr. Torsten Pohl, Head of Global Textile Coatings at ����AV, adds, "The combination of our partially bio-based INSQIN® PU coating binder with Huafeng HAPTIC® printing on recycled PET fabric shows how partners in the value chain can work together creating more sustainable products."

����AV has now defined a further bold target: the Group aims to become climate neutral and achieve net zero emissions by 2035 for scope 1 and scope 2. On the path to achieving this goal, the company plans to cut greenhouse gas emissions from its own production (scope 1) and from external energy sources (scope 2) by 60 percent² to 2.2 million metric tons by 2030. In addition, indirect greenhouse gas emissions from upstream and downstream processes in the value chain (scope 3) will be further reduced. ����AV intents to announce a reduction target for this by 2023.

To achieve net zero emissions, ����AV anticipates dedicated investments of an accumulated EUR 250 million to EUR 600 million by 2030, resulting in lower operating expenses of expected EUR 50 million to 100 million annually due to growing energy efficiency. On its path to achieve net zero emissions, ����AV also expects an increase in operating expenses in the magnitude of a low three-digit million EUR amount annually. These cost assumptions are based on the historic experience that prices for fossil-based energies are lower than prices for renewable energies.  

“For the past two years, we have been working at full speed on our vision to become fully circular. We have already reached important milestones on this path and continue to set ourselves ambitious goals. Thanks to this approach, we are a pioneer in our industry and have accomplished many successes. One next milestone are our bold climate targets,” said Dr. Markus Steilemann, Chief Executive Officer of ����AV.

“In a circular economy, we can protect the climate, nature and resources and achieve sustainable growth that respects planetary boundaries. ����AV and the chemical industry are part of the solution. Sustainability cannot be done alone and will require a greater effort from everyone to achieve the goals of the Paris Climate Agreement. Policymakers, business and society must work together to achieve ambitious climate goals.”

Already now, based on ����AV’s previous greenhouse gas emissions reduction targets, major milestones have been reached. The Group met its ambition to reduce the greenhouse gas emissions by 50 percent per metric ton of product produced by 2025 earlier than expected. Thanks to successfully implemented operational excellence in all its major production sites, ����AV has cut emissions by 54 percent already in 2021, compared to base year 2005. 

A key aspect of the new 2035 reduction target is meeting the goal of the Paris Climate Agreement, under which the world community aims to limit global warming to 1.5 degrees Celsius.

Three levers make a vital contribution to achieving the climate targets

• Production processes will be improved further and energy efficiency enhanced to achieve even more sustainable manufacturing. One focus is on reducing nitrous oxide emissions. That will be possible through greater use of innovative catalyst technology. In addition, production plants can be controlled more efficiently thanks to further digitalization of the facilities and the use of digital technologies, while processes can be optimized using digital simulations. Digital technologies also help collect and track emissions data throughout the value chain.
   
• ����AV’s production sites worldwide are to be gradually converted to renewable electricity. That includes the use of offshore wind power, backed for example by a supply agreement with the energy provider Ørsted, which will cover 10 percent of the electricity required by the company’s sites in Germany from 2025 on. Onshore wind energy will also be used, for example under the power purchase agreement with ENGIE, that covers 45 percent of the electricity needs of the ����AV site in Antwerp, Belgium. About 10 percent of the electricity ����AV needs in Shanghai, China, already comes from the solar parks of Datang Wuzhong New Energy Co. In addition to the existing cooperation models with power suppliers, further agreements are being planned in order to achieve a net zero carbon footprint. 
   
• Steam is an important energy source for chemical production processes. Converting steam generation from fossil to renewable energy sources is a challenge that ����AV intends to solve by various routes. To this end, the company is looking into the use of biogas and green natural gas as an energy source to generate renewable steam. Green hydrogen and green ammonia or green electricity could also be used as energy source for steam generation.

����AV is updating and expanding its existing management system at the start of fiscal year 2022. The Group is also adding a sustainability component, measured by direct and indirect greenhouse gas emissions (scope 1 and 2) in 2022. Reducing greenhouse gas emissions (scope 1) has been a key performance indicator used as a component top management’s long-term compensation since January 2021.

����AV will offer every product in a climate neutral version

“We aim to shift all our production processes and products completely to circular principles in the long-term, and we intend to support meeting our and climate objectives of our customers at the same time,” said Lynette Chung, Chief Sustainability Officer at ����AV. “Circularity and climate efforts are two sides of the same coin for us. With our climate neutral product offerings, our customers can thus expect us to fulfill both needs at the same time. We aim to make sustainability decisions as simple as possible for our customers.”

Focused on customer centricity, ����AV is already expanding its portfolio of climate neutral products continuously. Fundamental macro-economic challenges are addressed by enabling sustainable and unique solutions in key markets. The high demand for sustainable solutions is additionally growing due to global trends. Urbanization, for example, increases the focus on constructing new energy-efficient buildings and renovating old ones. Large quantities of MDI are used worldwide as a raw material for making rigid polyurethane (PU) foam, a very effective insulation material for buildings and refrigerators. Now ����AV has added a climate neutral³ MDI to the product portfolio. 40 million metric tons of CO₂ equivalent could be saved by using PU insulation. The new MDI types are climate neutral from the cradle to the gate thanks to the use of precursors from ISCC PLUS-certified mass-balanced organic waste and residual materials.

Another groundbreaking example for sustainable products is ����AV’s world first climate neutral⁴ polycarbonate, made using raw materials from mass-balanced organic waste and residual materials as well as renewable energy. With the increasing trend of electromobility and the regulatory push for electric vehicles (EV), charging systems need to grow continuously, too. Using the climate neutral polycarbonate for EV charger could enable savings up to 450 kilotons CO₂ equivalent by 2030. ����AV’s climate neutral polycarbonate is being shipped to customers since 2021.

According to a common calculation model¹, on balance no CO₂ emissions are generated in the aforementioned part of the value-added cycle. The climate neutral MDI and its precursors are manufactured at the ISCC PLUS-certified ����AV sites in Krefeld-Uerdingen, Antwerp and Shanghai.

"With the launch of our climate neutral MDI, we are now further expanding our portfolio of climate neutral products," says Sucheta Govil, Chief Commercial Officer of ����AV. "I am pleased that this will enable us to even better support our customers in large parts of the world in meeting their own sustainability goals and transitioning to a circular economy." Only last December, the company announced the launch of its climate-neutral polycarbonate.

Hermann-Josef Dörholt, Head of the Performance Materials segment, adds: "Climate neutral products are an important factor in achieving our sustainability goals. Our climate neutral MDI has another major advantage: it is a drop-in solution – so our customers can use it immediately in their production without any changeover and without compromising on quality."

Even more sustainable building insulation

This is the case, for example, in building insulation. MDI is an indispensable raw material for the production of polyurethane (PU) insulation boards and sandwich panels, among other products. These have proven their value for many years as highly efficient elements in the thermal insulation of buildings. The heating or cooling requirements of buildings can be reduced by up to 70 percent through the use of PU insulation. This saves CO₂ emissions and is good for residents' wallets. Because PU insulation elements can therefore be designed thinner to achieve good insulation performance already, they save resources and make more usable space accessible than other insulation materials.

In addition to the good thermal insulation properties of PU insulating materials, ����AV's climate neutral MDI now provides a further sustainability benefit: It even helps reduce embodied carbon and energy consumption over the life cycle of a building. The use of PU insulating materials made from it in new buildings as well as in the renovation of older real estate can thus make an important contribution to the responsible use of primary resources and to significantly reducing CO₂ emissions.

The ����AV Innovation Design Contest 2021 (IDC 2021) had announced the winners from the finalist teams which their ideas for “EV Charging Station” under the theme “Recharge to a Fully Circular Way” are all innovative. creative, sustainable and possible to develop it for real application. ����AV (Thailand) joined hands with the Electricity Generating Authority of Thailand (EGAT) to give the opportunity for undergraduate students nationwide showcased their ideas and innovative creativity to win the prize and scholarship all worth over 185,000 Bath. In this final round, the judge panels are from various organizations including Mr. Warit Rattanachuen, Assistant Governor - Project Management Office from EGAT, Mr. Pichit Pongprasert, Head of EV Commercial Business from EGAT, Mr. Channarong Kaenthong, Vice President of the Architect Council of Thailand. Experts from ����AV, Ms. Khawissara Wattanapisit, Head of Communications – ASEAN and Mr. Chaiyut Changjenrob, Polycarbonates Plant Manager, were also on the judging committee.

Dr. Timo Slawinski, managing director of ����AV (Thailand) Limited gave the opening remark in the final round pitching and award ceremony “����AV organized this campaign for 3rd consecutive year with the aim to drive innovative ideas for the new generation of youth and being a part to develop our communities and society to be more advance while promoting sustainability at the same time. The competition theme for this year is very interesting and challenging to encourage students from nationwide to show their ideas on innovation that support the future trend on mobility. The design contest for EV charging station really comes at the right timing when the world and country is moving towards the EV cars and vehicles. For ����AV, we are driving towards sustainable future as well as putting a lot of efforts on reducing carbon footprint in all of our value chain which also fully align with the UN Sustainable Development Goals (SDGs). We strongly believe that the challenges are the key to widen more opportunities for us to collaborate on new innovation developments that could lead us to move forward sustainable world. Although, the IDC is a small part that help to promote innovation thinking which is driven by sustainability, we believe that this small effort together with many others organizations will be able to contribute to our sustainable world and future and to ensure that we hand over pleasant living space and society to our future generation”.

“I would like to congratulate the winning teams and express my gratitude for everyone’s efforts to recognize the problem, find solution and present us with the great design for EV charging station which is the theme of this year. I wish to see more and more of the great innovative ideas in the future from all students and importantly thanks to EGAT again to share the same goal and jointly support this campaign” added Dr. Timo.

Mr. Warit Rattanachuen, Assistant Governor - Project Management Office from EGAT, also stated “Electric vehicle application trends are playing a significant role all over the world, including in Thailand. We are all trying to figure out how to make the world more sustainable. The competition theme in this year of IDC 2021 is very useful to the societies” “Designing electric car charging station’ ideas from all contestants will help promote and convince people to interest in switching to electric cars which use clean energy and also help reduce greenhouse gas emissions and the occurrence of climate change around the world. This is the world's benefit that students being a part of that” mentioned Mr. Warit.

The 6 finalist teams showcased their ideas and potential for addressing the current challenges. Their creativity and innovative “EV Charging Station” designs fulfilled the judging committee’s scoring criteria, while the outstanding presentations of each team were second to none, greatly impressing the judging committee. The “KMUTT CHARGING STATION” project by students from King Mongkut’s University of Technology Thonburi (KMUTT) won the prize with 80,000 baht in scholarship as well as a trophy and certificate.

The first runner-up was “DENETOL” team by students from King Mongkut’s University of Technology Thonburi (KMUTT) awarded with 50,000 baht in scholarship as well as a trophy and certificate and the second runner-up, “Camellia Charging Station” team by students from King Mongkut’s University of Technology Thonburi (KMUTT) ) awarded with 30,000 baht in scholarship as well as a trophy and certificate.

Furthermore, three honorable mentions were given to “ECO-FRIENDLY MINI EV CHARGING STATION” team from King Mongkut's Institute of Technology Ladkrabang (KMITL), “Power Treecharg” team from Maejo University and “Green Tower Station” team from King Mongkut's University of Technology North Bangkok (KMUTNB) awarded with 5,000 baht in scholarship. There was also a Popular Vote prize of 10,000 baht which was awarded to “DENETOL” team by students from King Mongkut’s University of Technology Thonburi (KMUTT).

The new products are produced using bioattributed or bio-circular attributed (e.g. used cooking oil) raw materials and have a reduced carbon footprint compared with their fossil-based counterparts. At the same time, the mass-balanced products boast the same impressive quality and properties and can be integrated directly into manufacturing processes in downstream industries without technical modifications. In this context, the products are to be certified according to the ISCC Plus standard.

"Asia Pacific is the most dynamic and fastest-growing region for our TPU products used in industries including IT, electronics, footwear, films and sheets and many others. We are looking forward to creating value for our customers here with more sustainable products including the mass-balanced TPU, directly from our production sites in the region," said Dr. Andrea Maier-Richter, global head of the TPU business at ����AV.

"I am thrilled that we will soon be able to help our customers in Asia Pacific reduce their carbon footprint with this drop-in solution on the heels of our global footprint," said Lisa Ketelsen, head of Sales and Market Development and regional head for ����AV's TPU business in Asia Pacific. "With the ISCC Plus certification, we aim to achieve more transparency from raw material purchasing to our production and distribution to customer use. This is an important step in achieving our vision of becoming fully circular."

Extensive range of more sustainable TPU plastics

����AV has already launched various TPU products based on alternative resources over the past few years, as more and more consumers prefer more sustainable products. Outdoor outfitter VAUDE, for example, uses a foam midsole made partly from bio-based TPU in its new Lavik Eco hiking boot. Other product types contain a component that is manufactured proportionately using CO₂ instead of fossil raw materials. ����AV's range of Desmopan® brand TPU plastics also includes a range of fully recycled products. They are used, for example, in smartphone cases from the Dutch manufacturer Fairphone.

Thermoplastic polyurethanes are very versatile plastics. They come in a variety of hardness ranges, are flexible yet impact resistant, and are therefore highly suitable for a wide range of applications.

Mass balancing creates transparency

Supplying mass-balanced products is part of ����AV's comprehensive global program designed to fully align itself with the circular economy. In doing so, the company is focusing on increasing the use of alternative resources such as bio-based materials, plastic waste and CO₂, as well as renewable energies. The company is also collaborating with partners to develop innovative recycling technologies.

In mass balancing, fossil and alternative raw materials are mixed in production but treated separately in accounting. The chain-of-custody method enables materials to be tracked along the entire value chain and allows alternative resources, such as bioattributed components, to be allocated to selected end products. To date, three ����AV production sites in Europe and Asia-Pacific have been certified in compliance with the ISCC Plus standard, with more sites to follow. That would include the Changhua site in Taiwan, ����AV'a largest TPU production site in Asia, expected to be certified in the first half of 2022.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for the sustainability certification of biomass and bioenergy. The standard applies to all stages of the value chain and is recognized worldwide.