James: Hello, and welcome to this Argus Chemicals Conversation Podcast. This is the second episode in our biochemicals and bioplastics series.
I am your host James Elliott, and I am joined by a special guest today: Roy Yang, Department manager, Sustainability Material Solutions Department.
James: Hi Roy, how are you doing today?
Roy: I’m doing well, thank you. How about you?
James: (Q1) Roy, many thanks for joining us today, it’s fantastic to have you on the podcast. Can you start by introducing yourself, your role and giving us an overview of Chimei?
Roy: Sure. Hello everyone, I am Roy. I am now the department manager of sustainable material solutions department in CHIMEI. My rule is a hybrid function, which includes sourcing the renewable feedstock and raw material, enacting the sustainable product development road map, promote to global key account with sales and also joining the marketing event and the sustainable product certification. To make it easy,
Hello everyone, I am Roy. I am currently the Department Manager of the Sustainable Material Solutions Department at CHIMEI. My role is a hybrid function, which includes sourcing renewable feedstock and raw materials, enacting the sustainable product development roadmap, promoting to global key accounts with the sales team, and also participating in marketing events and sustainable product certification processes.
James: (Q2) Thanks Roy. And Chimei are active in offering sustainable products – can you talk about your portfolio of products, particularly your bio-chemicals/bio-plastics solutions.
Roy: CHIMEI is a performance materials manufacturer with more than 60 years of expertise. Our product portfolio includes plastics such as ABS and Polycarbonate, as well as rubber and specialty chemicals, with an annual capacity exceeding 4 million metric tons. However, today, when people talk about CHIMEI, it is more about a solution provider—a company focusing on innovation, deep collaboration with customers, and devotion to sustainability.
For our sustainable products portfolio, we have the brand Ecologue. "Eco" stands for Eco-friendly and Ecology, and "logue" comes from the word dialogue. The portfolio includes Mechanical Recycling, Chemical Recycling, and also bio-based plastics and rubber. The way we produce bio-based plastics and rubber is through mass balance with ISCC PLUS certification. Our strengths are: diversified feedstock to fulfill customer demands; we are one of the pioneers in this area (obtaining certification in 2022) and are very active in collaborating with customers on development projects; and we offer transparent and trustworthy third-party Product carbon footprint certifications.
James: (Q3) In terms of your bio-attributed products, does Chimei have a preference as a company for bio-feedstock, production – pathway? Can you talk more about the sustainable philosophy at Chimei and what’s driving that?
Roy: CHIMEI's philosophy is rooted in "Xingfu," which means "well-being through contribution." This principle is about achieving a deep sense of happiness by contributing to society. This philosophy guides CHIMEI to focus on the greater good by supporting employees, customers, and the environment.
• For social responsibility, we have the CHIMEI Museum and CHIMEI Hospital in Taiwan.
• For environmental sustainability, we adhere to a "clean and green" vision, which involves production through waste reduction and energy conservation (such as our CHIMEI Green Energy Park with solar panels), and developing high-performance, eco-friendly materials. It also promotes a "carbon handprint" idea by helping clients and suppliers reduce their carbon footprint.
For selecting bio-feedstock, the importance lies in finding renewable sources that can both meet customer demand and benefit the environment. Therefore, we focus more on bio-circular resources, which some people call 2nd generation feedstock, originating from waste, such as Used Cooking Oil (UCO) or waste generated during oil or fat production processes. Among all sources, UCO seems to be the most popular and widely accepted.
James: (Q4) Roy, currently the use of biochemicals/bioplastics is entirely voluntary. Can you talk about where you see greatest appetite for your bio products – in terms of geography are there certain countries; and in terms of end use sectors?
Roy: In the market, and within CHIMEI's sustainable product portfolio, there are different sustainable material options like mechanical recycling, chemical recycling, and of course, bio-attributed materails. They are all good solutions, depending on how a company prioritizes different factors, such as carbon footprint reduction, plastic waste reduction, quality compared to virgin materials, and the need to meet regulations.
As we've observed, companies that choose to use bio-plastics are mostly motivated by a desire to reduce reliance on fossil fuels, dramatically cut their carbon footprint, or want to maintain the same quality and control contamination as virgin material. Thus, sectors like Toys, food-related applications, automotive, medical, and consumer electronics tend to be more interested in bio-plastics and rubber.
Regarding region and area, the growth of sustainable materials is definitely significant in Europe, which includes not only local European factories but also European brands' own or contract manufacturing facilities in Asia. But in recent years, successful projects have also emerged in many places beyond Europe. The reasons behind this include being driven by the European consumer market and demand (e.g., cosmetics, automotive, 5G equipment); additionally, many major brands have set their own sustainability goals they need to achieve.
James: (Q5) What is Chimei’s outlook and expectation for biochemicals/bioplastics in the coming years? Are you expecting legislation to come in and boost demand? Do you see growth from your customers for your bio-products regardless of legislation?
Roy: Naturally, the growth rate for sustainable products, including bio-attributed ones, has been slower than expected in the past few years due to the overall economic environment. However, the general direction remains unchanged. From our perspective, both sales and projects under development have shown significant growth, and we are quite positive about future development for several reasons:
1. Legislation will become broader and more comprehensive. For example, the sustainable material regulations for the packaging and automotive industries are good examples of how they drive proactive development and usage. In the bio-attributed field, SAF (Sustainable Aviation Fuel) legislation is becoming clearer, and we certainly anticipate corresponding regulations to gradually emerge for the derived bio-chemicals/plastics (Biomass balance) to facilitate the development of the entire industry.
2. Aside from legislation, we observe several positive effects, including major brands' self-imposed sustainability and decarbonization goals, which often prompt them to lay the groundwork ahead of regulatory requirements.
3. Furthermore, once one brand starts using them, other brands within the same or different industries will have an interaction effect, accelerating the adoption.
James: (Q6) How do Chimei price their bio-attributed products? And what value do you see in a price for bio-attributed chemicals/plastics?
Roy: The price of bio-attributed products is influenced by too many factors, including the fuel market (SAF, renewable diesel) and feedstock, all of which affect the price of bio-chemicals/bio-plastics. Especially compared to the traditional petrochemical or fuel market, bio-attributed products are relatively new and smaller in scale, leading to higher price fluctuation and unpredictability.
CHIMEI's view is that bio-plastics are still in the early stages of development. More important than profit is collaborating to expand the market, stabilizing supply and demand to make costs more competitive, and satisfying the entire supply chain, from upstream to downstream, including consumers.
CHIMEI is positioned at a crucial point in the supply chain, and we dedicate significant time and effort to integrate strategic supply chain ensuring a stable supply of raw materials and co-development with strategic partners on new projects. The purpose is to build a sustainable and scalable business model. I believe this is the more important reason why customers choose to partner with CHIMEI—the 'value' that CHIMEI can offer.
James: Roy, many thanks for joining me today. It’s been great to learn about Chimei,you’re your sustainable products portfolio, and your view on biochemicals/bioplastics. Thanks for joining us. Goodbye.
Roy: Thank you, James. It was a pleasure to be here and share CHIMEI's story and vision for a more sustainable future. Goodbye.
