"This new line of polycarbonate represents a significant step in supporting the automotive industry's transformation towards a circular future," said Lily Wang, Global Head of the Engineering Plastics Business Entity at ����AV. "By offering high-quality PCR materials derived from end-of-life headlamps, we're enabling our customers to meet increasingly stringent regulatory requirements while contributing to closed-loop recycling of automotive plastics."

Under this initiative, ����AV has been collaborating with partners, including Chinese recycler Ausell and leading automakers, to establish closed-loop pathways for high-value plastics from end-of-life vehicles (ELVs). This program focuses on strengthening recycling processes and establishing reliable supply chains for high-quality recycled materials from automotive waste streams. Through this partnership, ����AV and its value chain allies have developed practical solutions for collecting and mechanically processing end-of-life headlamps into high-quality PCR grades suitable for a range of automotive applications.

"This partnership underscores the importance of cross-sector collaboration in driving the circular economy forward," said Martin Hansen, Regional Director of GIZ in East Asia. "By bringing together key industry players, we are not only creating viable solutions for recycling high-value plastics from end-of-life vehicles but also fostering innovation that supports a sustainable, closed-loop material flow in the automotive industry."

The introduction of these new PCR grades comes at a critical time as the automotive industry, one of the most resource-intensive sectors, faces increasing environmental challenges and regulatory pressures. The EU's End-of-Life Vehicle Directive, which sets recycling targets, along with China's Extended Producer Responsibility (EPR) program and growing sustainability requirements in key global markets, are pushing automotive manufacturers worldwide to seek innovative and sustainable material solutions that comply with evolving regulations.

��DZ�����ٰ���’s new PCR grades meet the high-performance standards required for demanding automotive applications, offering excellent surface quality for superior aesthetics and adhering to strict Vehicle Interior Air Quality (VIAQ) requirements. This combination of sustainable content and premium performance empowers automotive manufacturers to meet both regulatory demands and environmental goals without compromising on product quality.

As part of its broader commitment to sustainability and the circular economy, ����AV continues to expand its portfolio of recycled-content materials. In recent years, the company has introduced PCR polycarbonates with up to 90 percent recycled content, and opened its first dedicated mechanical recycling compounding line for polycarbonates in Shanghai. Last year, it introduced a new range of polycarbonates based on chemically recycled, attributed material from post-consumer waste via mass balance for the first time.

As part of this collaborative effort, the initial phase involves the introduction of the first electric heavy-duty truck to replace the existing diesel truck for transporting polymeric diphenylmethane diisocyanate (pMDI) from the Shanghai site to nearby warehouses. This transition is set to cover part of the annual pMDI shuttle volume at ��DZ�����ٰ���’s largest production site, resulting in a projected reduction of 43 tons of CO₂ equivalent in well-to-wheel emissions (CO₂ emissions over the entire life cycle of fuels) in 2024 compared to the 2022 baseline – a 22 percent decrease. The future use of green power to charge the trucks will further contribute to the goal of achieving net zero in logistics.

Both companies will consistently evaluate the electric truck’s performance and efficiency, aiming for continuous optimization of the total cost of ownership associated with the vehicle. Based on these evaluations, decisions will be made regarding potential scalability.

"As a pivotal route toward achieving net zero, green logistics is poised to deliver sustainable solutions for mitigating scope 3 emissions. We look forward to working with ����AV to advance the exploration and adoption of sustainable logistics solutions in the chemical industry and contribute to the ultimate goal of net-zero emissions from the logistics side," said Fu Peng, Executive Vice President of COSCO Shipping Logistics & Supply Chain Management.

"The supply chain plays a crucial role in the chemical industry’s journey to achieve climate neutrality, demanding collaboration beyond individual company boundaries. The commercial deployment of this groundbreaking electric truck for chemical shuttling is poised to act as a catalyst, propelling our site and company towards climate neutrality and a circular economy," stated Dr. Yun Chen, General Manager of CISS.

Contributing to scope 3 emissions reduction

Approximately 80 percent of ��DZ�����ٰ���’s total emissions stem from scope 3 emissions, or indirect emissions resulting from upstream and downstream processes, including supply chains, material transport, and raw material processing.

In the Asia Pacific region, where around 70 percent of ��DZ�����ٰ���’s products are transported by truck, concerted efforts to reduce emissions within the logistics framework are specifically targeted at trucks. In light of this, the green logistics program was launched last year with the objective of devising more sustainable methods for road transportation via trucks. Collaborators in this endeavor include customers, logistics solution and infrastructure partners, and industry organizations, with the network steadily expanding.

The program is designed to rigorously assess the viability of specific strategies under distinct scenarios. Among the explored solutions is the utilization of subsidized biodiesel in Shanghai for long-haul transport of dangerous goods, as well as the integration of hydrogen fuel cell-powered trucks.

"We are committed to expanding our network of partnerships to actively seek, pilot, and scale up sustainable, low-carbon logistics solutions that meet both environmental and commercial needs. We anticipate continued progress in introducing new solutions aimed at significantly reducing our scope 3 emissions, thereby propelling us towards a climate-neutral future," said Marius Wirtz, Senior Vice President, Supply Chain & Logistics Asia Pacific, ����AV.

����AV has said 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 is poised to unveil its reduction targets for scope 3 emissions soon.

The joint lab will mainly focus on the commercialization of low-carbon material solutions in future EV models and the establishment of relevant standards, as well as the development of next-generation smart surface technologies and battery solutions. This initiative builds upon a cooperation agreement signed between the two companies at the CIIE last year.

"We’re delighted to deepen our collaboration with HiPhi," said Dr. Markus Steilemann, CEO of ����AV, during the unveiling ceremony at ��DZ�����ٰ���’s booth at the CIIE. "We set out to address the key challenges of future mobility with the launch of the joint lab. With our common commitment to pioneering low-carbon smart mobility and by combining our strengths and resources, we believe the lab will accelerate the automotive industry’s transformation towards a smarter and climate-neutral future."

"HiPhi aims to redefine the luxury brand in the new era. We are accelerating the adoption of intelligent and low-carbon technology in smart EVs to provide global users with a safe, efficient and sustainable travel experience, thereby changing the future of mobility and contributing to society," said David Ding, Founder and CEO of HiPhi. “��DZ�����ٰ���’s advanced material expertise is key to helping us achieve this vision. The establishment of our joint laboratory stems from ��DZ�����ٰ���’s recognition of the innovative strength represented by HiPhi and other Chinese companies. We also aspire to empower our global partners and foster mutually beneficial relations through the CIIE.”

On display at ��DZ�����ٰ���’s booth at the CIIE is the HiPhi Y, the latest luxury SUV that incorporates advanced polycarbonate solutions from ����AV, most notably in the headlamp and LiDAR lenses. As EV becomes increasingly smarter, the headlamp presents new opportunities in digital communication beyond lighting. On the HiPhi Y, the headlamp lenses are turned into a projector to display signs and patterns in front of the vehicle, creating an interactive interface with pedestrians and other vehicles. ��DZ�����ٰ���’s high optical performance Makrolon^® AL solutions offer the needed dimensional stability, UV resistance and high transparency required for this application. In the LiDAR lenses, the Makrolon^® AX portfolio demonstrates superior performance compared to glass, including excellent infrared transmittance, shaping curved surfaces and impact resistance against stone chips. They can also endure the working environment of LiDAR at temperatures from 110 to 115 degrees Celsius for extended periods.

"As the mobility industry embarks on a journey towards carbon neutrality, the demand for circular, low-carbon footprint materials is growing rapidly and will only accelerate in the near future," said Lily Wang, President of the Engineering Plastics segment at ����AV. "We hope to collaborate with more like-minded companies, like HiPhi, to accelerate the decarbonization trend and pioneer smart technology development at the same time."

HiPhi has been a long-term partner of ����AV since 2018. ��DZ�����ٰ���’s material solutions have been applied to HiPhi’s flagship models, such as the polycarbonate solutions that enable a "smart" B-pillar equipped with complex functions in the all-electric SUV HiPhi X. HiPhi Z, a smart sports sedan, employs polycarbonate grades for the touchpad switch on its steering wheel – enabling a futuristic interactive design – as well as high performance waterborne polyurethane adhesives for auto interiors.

For a closer look at ��DZ�����ٰ���’s solutions for a fully circular future at the CIIE, visit us at booth 3B6-05, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2023.

"The launch of our MCR production line marks another significant stride in our journey towards achieving a circular economy and operational climate neutrality by 2035," said Sucheta Govil, Chief Commercial Officer of ����AV. "Plastic waste recycling is pivotal in realizing this vision, and through the expansion of our recycled plastics production capacity, we aim to lead the way in driving sustainability across diverse industries."

����AV is committed to supplying over 60,000 tons of recycled-content polycarbonates annually in the Asia Pacific region by 2026, in response to robust market demand. Recently, the company also transformed an existing compounding line at its Map Ta Phut site in Thailand for mechanically recycled polycarbonate.

"These investments enable us to meet the rising demand for PCR polycarbonates, enhancing our capacity and efficiency. With new or repurposed capacity now operational, we are better positioned to assist our downstream customers in their journey towards more sustainable products, expediting the transformation of industries towards a circular and climate-neutral future," said Lily Wang, Head of ��DZ�����ٰ���’s Business Entity Engineering Plastics.

A broad range of PCR portfolio

The demand for such materials is surging on a global scale, driven by regulatory initiatives like the European Union’s proposed Directive on end-of-life vehicles (ELV Directive), which sets strict benchmarks for the utilization of recycled plastics. Furthermore, industries like consumer electronics are poised for increased demand for recycled materials, especially those with a substantial recycled content.

These market dynamics underscore the significance of ��DZ�����ٰ���’s recent developments in providing PCR polycarbonates. Earlier this year, the company unveiled a polycarbonate boasting 90 percent recycled content. This grade not only attains outstanding whiteness and highly saturated colors but also touts a sustainable feature – a 70 percent reduction in carbon footprint compared to its fossil-based virgin plastic counterpart. Achieving this remarkable accomplishment requires a meticulous selection of high-quality recycled materials and precise optimization of material composition during the compounding process.

Furthermore, ����AV is actively engaged in pioneering the chemical recycling of polycarbonates. Having successfully developed an innovative process within the laboratory, the company is now embarking on the technical implementation of this breakthrough at a pilot scale.

Expansion of polycarbonate production capacity in Asia Pacific

After debottlenecking multiple production lines at the Map Ta Phut site in Thailand, ����AV is nearing the final stages of a program to enhance polycarbonate production capacity and capabilities across the Asia-Pacific region. This program also includes the addition of new production lines at sites in Shanghai and Guangzhou, China, as well as Greater Noida, India, in recent times. The combined additional capacity now exceeds 100,000 metric tons annually. These strategic projects, aimed at optimizing the regional production network, have been supported by using digital tools, which also reduced investment costs.

"In this way, we aim not only to meet the growing demand for polycarbonate in Asia, but also to offer our customers there an improved product quality," says Dr. Nicolas Stoeckel, Head of Operations in the Business Entity Engineering Plastics. "Depending on demand, the upgrades can be used for compounding recycled or conventionally produced polycarbonate." Therefore, both projects are also about improving ����AV´s ability to produce more plastics with higher recycled content.
 

"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:}

Currently, two of its own ships and two additional chartered ships belong to Tailwind Shipping Lines. In addition to the non-food products from and for Lidl, Tailwind offers space on these ships also for interested companies. ����AV uses this now to also become more independent from the busy main routes and shipping companies and to increase the speed and punctuality of its own deliveries.

"Ocean shipments have been severely disrupted since the pandemic began, and the scheduling accuracy of large shipowners has fallen from 70 to 20 percent," says Sucheta Govil, Chief Commercial Officer at ����AV. "To increase our reliability and punctuality, we are therefore actively looking for alternatives. With Tailwind, we have found a partner to navigate the direct route from Asia to Europe with its ships - and who is therefore exactly where it helps us."

Smaller vessels, more flexibility and punctuality

The Tailwind ships have a capacity of around 5,000 "Twenty Foot Equivalent Units", or TEU, per month. TEU is a standard measure for shipping containers. Large ships from the big shipping companies can hold three to five times more. However, those mega ships can also only discharge at large ports and travel rather fixed routes with pre-determined stops, which increases the susceptibility to delays.

"We now determine the route ourselves. And because our ships are smaller, we can also have them sail to and discharge at smaller ports. This gives us a great advantage in terms of flexibility, speed and thus also punctuality," says Wolf Tiedemann, CEO of Sales, Logistics and Central Divisions of Lidl Stiftung & Co. KG. "This allows us to import our own goods reliably from Asia - but at the same time we still have room that we can offer. We are pleased to have found a first interested customer and partner with ����AV and hope to be able to expand the cooperation further and find other interested parties."

A first container of ����AV materials successfully completed the route from the company's largest production site near Shanghai to Europe. Currently ����AV ships a good 8,000 containers a year on that route alone. How many of these will be transported by Tailwind in the future is currently being negotiated.

"����AV aims to become climate-neutral by 2035 and is systematically converting its production worldwide to renewable energies to achieve this goal," says CEO Dr. Markus Steilemann. “On the way to achieving this, we have reached a new milestone with this agreement. At the same time, we are contributing to the further expansion of the entire market for renewable energies with our investments and our commitment.”

Under the PPA, the ����AV Integrated Site Shanghai will purchase approximately 300 gigawatt hours of green power annually from CGN's wind and solar farms in the town of Lenghu in northwest China's Qinghai province. The agreement will reduce ����AV's carbon emissions in China by around 126,000 metric tons of CO₂ per year. This is equivalent to the emissions of around 60,000 gasoline-powered cars annually. The PPA is scheduled to take effect in January 2023.

"We are delighted to support leading chemical companies like ����AV in converting their production sites to renewable electricity. We look forward to our further cooperation with ����AV, and together we will also contribute to China's dual carbon targets and sustainable development," says Qi Fang, Deputy General Manager of CGN New Energy.

The Shanghai site is already partly supplied by renewable energy. For example, in 2022 alone, it is expected to use more than 300 gigawatt hours of solar power generated in northwest China.

"This new contract is a milestone in the Shanghai site's journey to net-zero emissions. We have increased energy efficiency and significantly reduced emissions over the years, and the use of green power and alternative raw materials will be a key focus as we strive for carbon-neutral production in the next decade," says Holly Lei, President of ����AV China.

Meanwhile, ����AV's Guangzhou and Foshan sites in south China will be powered with 100 percent renewable electricity. Starting next year, both sites will be using power generated from CGN’s offshore wind farms in Guangdong province.

The latest PPAs in China follow purchase agreements ����AV had already signed with energy suppliers in Europe. Under one agreement, utility Ørsted will supply offshore wind energy starting in 2025, which is expected to meet 10 percent of the electricity needs of ����AV's sites in Germany. Under another, ENGIE, Belgium's largest renewable energy producer, will provide onshore wind energy to meet 45 percent of the electricity demand of ����AV's Antwerp production site in Belgium.

PU in wind-blade production is a transformative innovation delivered by ����AV teams around the globe. With better mechanical properties, an efficient production process, and a more cost-effective production solution than conventional fiberglass-reinforced epoxy blades, PU blades are opening a new chapter in the wind blade industry.

Commercial success

����AV and TMT signed a memorandum of cooperation about a year ago, based on which significant commercialization results have been achieved. PU wind turbines are now being used in commercial wind farms throughout China.

Dr. Binbin Hou, General Manager of Wind Business at TMT, said, "PU wind blades cater to the growing demand for longer wind blade designs. We hope to further collaborate with ����AV to improve the competitiveness of wind energy through continuous technology innovation."

"We are very pleased to reach the important milestone of the launch of the 1000th blade with TMT," said Christine Bryant, Global Head of the Tailored Urethanes Business Entity at ����AV. "We believe that industrial collaboration is fundamental to addressing global warming and energy shortage issues, and it is also an important part of ��DZ�����ٰ���’s commitment to a circular economy."

TMT produces PU wind blades ranging from 59.5 meters to 94 meters in length with different blade designs and layup structures to meet the growing demand for longer and larger wind blades. The 94-meter wind turbine blade, capable of generating 8 MW of energy, is the largest PU application for ����AV so far. Multiple TMT factories manufacture these blades under different temperatures, humidity, and altitude, proving the wide applicability of PU resin in the manufacturing process.

Dr. Xuebin Feng, R&D Director of Wind Business at TMT, said, "We overcame many technical challenges to accelerate the production process of large polyurethane resin wind blades and achieve mass production."

Further collaboration

In addition to wind turbine development, ����AV and TMT have jointly developed PU railway sleepers, which are more durable and cost-effective in maintenance than traditional wood and concrete sleepers. ����AV, an integrated PU solution provider, will cooperate with TMT to provide various PU resins, coatings, and PU machinery solutions.

The largest import themed expo in the world, the CIIE gathers a myriad of companies from across industries every year. This is ��DZ�����ٰ���’s second appearance following its debut in 2021.

"The world is increasingly facing enormous challenges. It is in our hands to meet them and set the course for a green, smart and safe future. Many ideas, concepts and technologies are there, they now need to be realized with determination," says Dr. Markus Steilemann, CEO of ����AV. "At CIIE, we want to raise awareness for building a circular economy and for climate neutrality by presenting particularly innovative and sustainable material solutions. At the same time, we want to strengthen relationships with our partners in China and around the world."

A leading example of ��DZ�����ٰ���’s successful partnerships comes from Hong Kong-based , a manufacturer of polyurethane-based comfort products, which will make the global debut of its first low-carbon mattress at the ����AV booth.

"We are honored to stage the world debut of our new low-carbon sleep system products together with ����AV at the CIIE," says Sinomax President Eric Cheung. "This marks a major step towards sustainable development at Sinomax Group, amid growing market demand for low-carbon products in China and around the globe. We look forward to further cooperating with ����AV on a global scale for more sustainable products."

The mattress uses bio-attributed mass-balanced TDI (toluylene diisocyanate), a key component for the production of flexible foams, purchased from ����AV. This can reduce CO₂ equivalent emissions by about 10 kilograms for a single mattress.

Materials with lower carbon footprint

����AV offers renewable TDI, among other materials, using the mass-balanced method, under which alternative raw materials are allocated to the products as certified by ISCC PLUS. They uphold the same high quality as their fossil-based counterparts without customers having to change their processing operations, while enabling them to reduce CO₂ emissions.

Other solutions featuring the mass-balanced method at CIIE include low-carbon coatings applied to the wood structure on ��DZ�����ٰ���’s booth. The coatings, made by Chinese company Baichuan, are based on the Desmodur^® CQ hardener from ����AV. The hardener contains more than 30 percent of biomass according to ISCC PLUS and reduces CO₂ emissions by more than 20 percent from cradle to ��DZ�����ٰ���’s factory gate.

"We believe mass-balanced solutions, among other low-carbon materials, are crucial to support the sustainable development and climate-neutral future of various industries and society. But to broaden this impact, we rely on the strength of more partnerships, and that’s why we are here at the CIIE," says ����AV China President Holly Lei.

In another example, ����AV and Chinese premium smart EV brand are deepening their partnership to create next-generation solutions to make mobility smarter and greener. Under a new agreement to be inked during the CIIE, an array of ��DZ�����ٰ���’s CO₂-reduced polycarbonates, coating and adhesive solutions are expected to be applied in HiPhi’s future models, enabling new functions while reducing their carbon footprint.

Broad portfolio to promote circular economy

����AV will showcase its cutting-edge materials, solutions, technologies and collaborative ties at several exhibition areas: Future Mobility, Clean Energy, Green Building and Sustainable Living, on top of a Branding & Culture corner designed to improve visitor engagement.

"We look forward to further advancing our sustainable development agenda in China through advocacy and collaboration with our customers, partners and other key stakeholders here," Lei adds.

To learn more about ��DZ�����ٰ���’s solutions for a climate-neutral future at the CIIE, visit its booth, 3C3-01, at the National Exhibition and Convention Center (Shanghai) from November 5 to 10, 2022.

¹ Renewable TDI is produced using the mass balance approach using renewable feedstocks – from virgin biomass as well as biowaste and residuals – which are mathematically assigned to the product.

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.}

"With this agreement, ����AV, Mitsui Chemicals, and Mitsui & Co., Ltd are taking their partnership to a new level, with the goal of supplying customers along the process chain with more sustainable raw materials from mass-balanced, renewable sources," says Sucheta Govil, Chief Commercial Officer of ����AV. "I am very pleased that we are now also gradually converting our production in Asia to products with renewable raw materials. In this way, we are helping customers achieve their sustainability goals and offering them a drop-in solution that they can use immediately without a major changeover."

Recently, the first shipment of mass-balanced phenol produced by Mitsui Chemicals, Inc., from its Osaka site arrived at the production site of ����AV in Caojing, Shanghai. Further shipments are to follow, also including bio-attributed acetone. Mitsui Chemicals uses bio-feedstock from waste and residues as raw material basis for its bio-attributed phenol and acetone products.

"We’re pursuing not only plastic recycling but also a switch to biomass in aim of realizing a circular economy," said Yoshino Tadashi, Senior Managing Executive Director and President of the Basic Materials Business Sector of Mitsui Chemicals. "So it’s a delight to have been able to make our first shipment and delivery of mass-balanced phenol based on bio-feedstock to ����AV. With our materiality contributing to the realization of a sustainable society, we look forward to working together with everyone to steadily promote the social implementation of biomass."

"Our long-term partnerships with ����AV and Mitsui Chemicals have enabled us to deliver the first renewable Phenol in Asia." said Takashi Furutani, Chief Operating Officer of the Basic Materials Business Unit of Mitsui & Co. "Mitsui is committed to providing solutions for customers who work towards a circular economy. This is just the beginning of our journey."

In mass balancing, bio-based raw materials are used at an early stage of production and mathematically allocated to finished products. This saves fossil raw materials and reduces greenhouse gas emissions, while the quality of mass-balanced products remains the same compared to purely fossil-based ones.

ISCC ("International Sustainability and Carbon Certification") is an internationally recognized system for sustainability certification of biomass and bioenergy, among others. ISCC Plus includes additional certification options e.g. for techno-chemical applications, including biomass-based plastics.

"With our broad portfolio focused on the circular economy in various industries, we are strategically well positioned to support China's sustainable development, particularly the country's ambitions to become carbon neutral," said Dr. Markus Steilemann, ����AV's CEO. "Our vision to become fully circular is in line with China's megatrends, as we recognize that China will play a key role in the transition to a circular economy."

Asia debut of mass-balanced MDI and polycarbonate

A key focus of ����AV's presence at CIIE is the use of alternative raw materials. This includes the Asian debut of two ISCC PLUS-certified mass-balanced products with a lower carbon footprint: these are MDI – a key raw material for polyurethanes (PU) – and the high-performance plastic polycarbonate, with imported raw materials. Both contain a significant proportion of alternative raw materials, including plant waste, residual fats and vegetable oils, which partially replace fossil resources. And both are used in a wide range of applications: polyurethanes in insulation, upholstered furniture and automotive manufacturing; polycarbonates in the electronics, automotive and healthcare industries. ����AV's mass-balanced products help make these end-use applications more sustainable, supporting the circular economy and, in some cases, climate neutrality.

Portfolio with diverse applications to enable circular economy

At CIIE, ����AV will be presenting even more technologies, products and solutions to this end. Here are a few examples:

• The company has developed a new technology for recycling flexible foam from polyurethane mattresses that enables the recovery of both key raw materials. This allows the carbon footprint to be reduced along the entire value chain for PU mattresses.
• ����AV is exhibiting its Triturn® CO₂ technology, which enables carbon dioxide to be reused as a valuable alternative raw material in polyol production, replacing up to 20 percent of fossil feedstock. It can be leveraged for many different types of applications and industries, such as flexible foam for mattresses and binders for sports flooring, as an answer to address consumer demands and the rising environmental awareness.
• In Electronics & Electrical, exhibits ranging from 5G infrastructure to smart devices show how ����AV's low carbon footprint material solutions can enable a new era of smart connectivity. The company's portfolio includes polycarbonates with high post-consumer recycled content and with mass-balanced renewable raw materials that can reduce carbon footprints by up to 80 percent.
• Renewable energy highlights include polyurethane resins that enable lighter wind rotor blades and improve the efficiency of their production, and various other material solutions for effective expansion of this renewable energy.
• In the green building sector, ����AV brings its polyurethane solutions for energy-saving pultrusion windows and as insulating foams for buildings, as well as partially bio-based polyurethane coatings for wood furniture.

To learn more about ����AV's solutions for a carbon-neutral future at CIIE, visit ����AV's booth, number 3B5-005, at the National Exhibition and Convention Center (Shanghai) from November 5-10, 2021.

CISS, the company’s biggest site worldwide, is the first ����AV site in the Asia Pacific region to have received the ISCC Plus certification, following in the footsteps of the two European sites Antwerp in Belgium and Uerdingen, Germany, at the end of last year. In the meantime, two local trading entities, ����AV (Shanghai) Investment Co., Ltd. and ����AV (Hong Kong) Ltd., have also been ISCC Plus certified.

This means that certified mass-balanced products can now be delivered seamlessly from ��DZ�����ٰ���’s production and trading units to downstream industries. The company will start delivering the first order for certified mass-balanced polycarbonates of the Makrolon® RE range to the electronics industry in September.

"It makes me proud that we’ve taken a big step forward towards our vision to be fully circular in order to meet the demand for more sustainable products," says Sucheta Govil, Chief Commercial Officer at ����AV. "With the mass balance certification, we are now able to directly support our customers in Asia Pacific to reduce carbon footprint with a drop-in solution that can be implemented in existing production processes without the need for technical modification."

Mass balance approach with alternative raw materials

Dr. Yun Chen, General Manager of ����AV Integrated Site Shanghai, says, "This is a critical step towards achieving climate neutrality and ultimately moving towards full circular economy: We are obtaining an external certification, advocating for the use of more sustainable raw materials, and truly bridging the goal of reducing the total carbon footprint to the production, distribution and sourcing of raw materials for our products."

Mass balance is a chain of custody method that allows fossil and alternative feedstock to be mixed in production but separated in bookkeeping. It is able to track materials through the value chains and allows attribution of alternative feedstock, like bio-based raw materials, to selected end products. Through the mass balance approach, alternative raw materials are introduced into the value chain while taking advantage of the existing chemical infrastructure with its high efficiency and economies of scale, accelerating the transition of the industry to a circular economy of plastics.

Up to 80 percent reduction in CO₂ footprint

Mass balanced products from ����AV with attributed alternative content have significantly lower CO₂ footprint compared to fossil-based alternatives while enjoying the same good quality and properties. Mass-balanced Makrolon® RE, for example, offers superior climate performance with up to 80 percent reduction in carbon footprint compared to standard virgin material already today. ����AV plans to make selected Makrolon® RE polycarbonates climate neutral by the use of renewable energy at its European sites by the end of this year, to be followed by other regions.

����AV is gradually converting to alternative raw material sources including renewables as part of a comprehensive program to drive forward the transition to a Circular Economy. The certification of the polycarbonate as well as the intermediate product MDI strengthens the use of alternative raw materials at ����AV. Polycarbonate is used in high-quality applications in the automotive and electronics industries, among others. MDI is used to produce rigid polyurethane foam, which has been providing efficient thermal insulation for refrigeration appliances and buildings for decades.

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.

Energy supply partly from renewable sources

Separately, ����AV´s Integrated Site Shanghai has signed a contract to purchase 100 gigawatt-hours per year of solar power from Datang Wuzhong New Energy Co.’s solar farms in northwest China’s Ningxia region. This is another step on the road to using renewable energies in its production and thus realizing the company’s vision of becoming fully circular. This amount is equivalent to about 10 percent of the site’s annual electricity demand. This energy will increase the amount of renewable energy already used by CISS.

This application focuses on waterborne PU dispersions with up to 50 percent biomass-based carbon content, reducing the CO₂ footprint accordingly but offering the same good quality as fossil-based raw materials. The coating also features a premium look and feel – as befits the characteristic quality of these notebooks. Using INSQIN® technology, Moleskine® and Chinese PU synthetics material specialist are now able to produce partially bio-based coatings for hardcover and softcover notebooks.

On the path to more circularity

"We are partnering with ����AV to perfect these high-quality, low-solvent coatings for our classic Moleskine® notebook covers," says Daniela Riccardi, the company's Chief Executive Officer. "��DZ�����ٰ���’s partially bio-based coating technology enables us to reduce our impact on the environment and improve our sustainability."

"Working with innovative partners like Moleskine® allows us to develop more sustainable materials," explains Dr. Torsten Pohl, global head of Textile Coating at ����AV. "With our new partially bio-based raw material, ����AV allows for a total of approximately 23 percent renewable carbon in this coating, which is in line with our vision to become fully circular."

The project is part of a global strategic program with which ����AV is fully committed to the circular economy. That’s why the company is focusing on the use of alternative raw materials and renewable energy, the development of innovative recycling technologies, and collaboration with partners along the value chains.

Press Releases:

• Closing the loop for polyurethane mattresses
• ����AV and REnato lab launch Circular Design Guidebook for EEA industry

Photos:

Infographic:

Videos: