Malaysian recycler expands, wins SPE tech award

Published: March 5, 2014 1:20 pm ET
Updated: March 6, 2014 8:36 am ET

Image By: Steve Toloken Seah Kian Hoe of Malaysian recycler Heng Hiap Industries.

Related to this story

Topics Sustainability, Asia, Recycling, Materials Suppliers

HO CHI MINH CITY — Malaysian recycling company Heng Hiap Industries Sdn Bhd is investing several million U.S. dollars in a new plastics facility that will at least double its capacity and allow the company to meet what it says is increased demand for its specialized grades of recycled resins.

The Johor, Malaysia-based company plans to move into a new 10,000-square-meter facility later this year, to meet what it says is growing demand among manufacturers to both cut their costs and reduce their carbon footprint.

In an unrelated development, Heng Hiap was also named the winner Feb. 21 of the 2014 “Chairman’s Award” from the Environmental Division of the U.S. trade group the Society of Plastics Engineers.

SPE said it was recognizing the company’s work developing technology to make recycled plastic with improved properties like anti-bacterial performance, faster cycle times or better electrical conductivity. The company will receive the award at SPE’s annual Global Plastics Environmental Conference on March 14 in Orlando, Fla.

The company said the new factory, also in Johor, will consolidate several smaller facilities.

“Customers are looking for more high performance, special performance, in their products,” said managing director Seah Kian Hoe, in an interview at the company’s booth at the Plastics & Rubber Vietnam 2014 show, held March 4-6 in Ho Chi Minh City.

Seah said the move will “at least double” its existing capacity of producing up to 1,200 metric tons of the recycled resin per month, although he declined to be more specific about the size of the investment or how many extrusion lines it plans to add. The company said it currently has four extrusion lines.

The company currently handles at least 4,000 metric tons per month of scrap plastic, mostly polypropylene, but it does not convert all of that into its “Smart Plastics” brand of recycled resin pellets.

The new investment will let it turn more of the scrap plastic into the higher-value “smart” material, he said.

Seah said demand is increasing both because manufacturers want to lower their costs, and because companies want to be able to lower their carbon footprint or claim a green advantage by reusing waste materials. But he said the material has to compete economically.

“The first is there must be an economic justification,” he said. “The value proposition must be there. The second part of that is the whole package must be a solution, to the market, to the product, to the R&D.

“The carbon footprint, the green economy, that is an added advantage, because over the period of time consumers are more aligned toward that. So it does help, but on the foundation that the first two must be met.”

Heng Hiap, founded in 2002, is a broad-based recycling company that includes operations in metals and paper recycling. The privately held firm has about 250 employees, with about 110 employees in its plastics division. Seah said the company's annual sales for all its recycling operations are about US$100 million.


Comments

Malaysian recycler expands, wins SPE tech award

Published: March 5, 2014 1:20 pm ET
Updated: March 6, 2014 8:36 am ET

Post Your Comments


Back to story


More stories

Image

Ineos closing Barex plant, exiting business

October 29, 2014 3:58 pm ET

Materials maker Ineos Group is closing its only global Barex-brand polyacrylonitrile (PAN) resin plant in Lima, Ohio. Ineos – based in Rolle,...    More

Image

DSM picks Augusta, Ga., for nylon plant

October 29, 2014 11:49 am ET

Materials firm Royal DSM NV has chosen Augusta, Ga., as the site of its new North American nylon resin plant.    More

Image

Teknor Apex expands production of recycled nylon to Europe

October 29, 2014 10:12 am ET

Materials firm Teknor Apex Co. is making its recycled nylon compounds available in Europe for the first time.    More

Image

Unplanned disruption in Texas hits Huntsman's quarterly earnings

October 29, 2014 9:30 am ET

Huntsman Corp. saw its earnings drop in the third quarter of 2014, due in part to an unplanned disruption at its Port Neches, Texas, plant.    More

Image

Trex sets quarterly sales record with more business on tap

October 28, 2014 1:09 pm ET

Composite deck maker Trex Co. Inc. set sales and earnings records for the third quarter of 2014 and is on track to see revenue reach $388 million for ...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events