Tetra Pak partners S.H.A.
Hup Aik Sdn Bhd in a RM4.65 Million
co-investment to modernise polyAl recycling facility for a
sustainable value chain

Tetra Pak is forming partnerships across the value chain to reduce climate impact and support Malaysia's low carbon circular economy

Tetra Pak enable low carbon value chain

Tetra Pak, together with S.H.A. Hup Aik Sdn Bhd (SHA), a sustainability services company today announced a collaboration to modernise an existing polyAl recycling facility, in line with its efforts to reduce waste, enhance packaging collection and recycling infrastructures and enable a low carbon value chain ecosystem for Malaysia.

The RM4.65 million (EUR1.03 million) co-investment between Tetra Pak and SHA will see a modernised polyAl facility, increasing its recycling capacity by over 80 percent from 1.4 tonnes per day (TPD) to 8 TPD. Its upgraded technology will also significantly improve the quality of the polyAl products, hence boosting its demand.

Besides enhancing the commercial value of polyAl materials for the recycling industry, the partnership will also encourage collective action among stakeholders in a full life cycle carton approach – an encouraging step to ease the adoption of the extended producer responsibility (EPR) scheme. The improved infrastructure provides a solution for reducing carbon impact not only for Tetra Pak's operations, but also its customers and other stakeholders in the value chain, accelerating the shared net-zero ambitions.

Tetra Pak help build greener Malaysia

Michael Wu, Managing Director of Tetra Pak Malaysia, Singapore, Philippines and Indonesia said, “This partnership resembles everything Tetra Pak stands for. It is a demonstration of years of efforts that we have put into work to ensure the recyclability of all components of our cartons by 2030t, as part of our pledge to the EU Plastics Strategy and in support of the Malaysian Plastics Sustainability Roadmap 2021-2030. Beyond product innovation, we are working alongside our customers and partners, to build a low carbon value chain that is effective against climate issues.”

The collaboration represents a significant step forward for both companies in supporting Malaysia's journey towards sustainability by boosting the recyclability of Tetra Pak's carton packaging all the way down to the polyAl component. For Tetra Pak, this investment is a proactive action to maintain the circularity of cartons, ensuring that they are collected, sorted, recycled and continue to provide value. Recycled polyAl is typically recycled into roofing sheets and panel boards which can be used for construction, building, furniture and household product applications.

Lee Kuang Chen, General Manager of S.H.A Hup Aik Sdn Bhd added, "The co-investment with Tetra Pak to upgrade the current recycling facility will help to bring down waste and elevate the value of recyclable materials. The higher quality recycled polyAl enables us, a sustainability services company that has been in the recycling business for over 30 years to increase the value and demand of the materials both locally and internationally – enabling us to help build a greener Malaysia.”

Currently in its early operational stage, the modernised recycling plant will be officially launched in the first quarter of 2023 with improved efficiency that will further boost Malaysia’s recycling capabilities. This is in line with the nation’s aim of achieving a 40% recycling rate by 2025 and a 76% average collected-for-recycling (CFR) rate by 2030.

Imrpoved infrastructure

In Malaysia, Tetra Pak has made huge strides and led numerous efforts alongside its partners. It is one of ten founding members of the Malaysian Recycling Alliance (MAREA), an alliance that aims to enhance collection, promote the use of recycled and renewable materials and minimise post-consumer packaging leakage into the environment. Tetra Pak has also led numerous programmes to raise awareness on cartons recycling such as the CAREton Project alongside Nestle MILO UHT, introducing the first locally-branded carton-packed water to Malaysians with
The Watertree Project, as well as engaging with numerous local city councils and municipalities to strengthen community outreach programmes.

Just recently in August, Tetra Pak published its annual Sustainability Report, which captures a recap of the company’s progress in 2021. The company has successfully delivered 36% reduction in greenhouse gas emissions linked to its operations, sold plant-based packages and caps that equates to 96 kilo tonnes of CO2 compared to fossil-based plastics, and made EUR 40 million investment to advance carton collection and recycling, which is evident in this launch.

Looking forward, Wu emphasised that, “Sustainability has always been part of Tetra Pak’s business strategy and our efforts will not stop here. We will continue to work with our customers and partners across the value chain to innovate and deliver products and solutions that reinforces Tetra Pak’s brand promise – Protects What’s Good – which is brought to life through safeguarding food, people and planet.”

To know more about Tetra Pak and its sustainability efforts, kindly log on to www.tetrapak.com for more information.