Green Growth Through Circular Economy
Over 30 years of dedication has won FENC the undeniable leading status in the global polyester recycling industry. By vertically integrating the polyester supply chain and taking advantage of its cross-domain know-how, FENC channels its core strengths and continues to deliver innovative recycling technologies and products. Current development is aimed towards a diverse and all-encompassing deployment of circular technology to create dominance in the global recycling domain. With total green transformation, FENC is chartering a new blueprint for sustainable growth.
Information disclosed reflects data collected from the reporting year.
Deployment of All-Encompassing Circular Technology
FENC has marked extraordinary milestones in the promotion of circular economy. In addition to recycling PET bottles and polyester waste from the land and ocean, the Company has ventured into the recycling of industrial waste gas, tackling waste recycling and green technology from the land, ocean and air.
Land
Ocean
Air
To expand the scope of recyclable materials, FENC introduced FENC®TOPGREEN®rTEX. The chemical composition of recycled textiles is much more complex than that of PET bottles. FENC has mastered the technology to transform textile waste into polyester fibers with commercialization. FENC also developed FENC®TopGreen®ChemCycle, a technology with an even higher threshold. Waste polyester materials, which are blended with multiple substances, are chemically reduced into rPTA, and then repolymerized and produced into brand new polyester products.
The market for PET bottle recycling is maturing, and FENC is shifting its research and development efforts towards waste apparel recycling. Remanufacturing waste fabrics into new products will solve the mounting problem of used clothing while reducing the waste of resources. FENC introduced FENC®TOPGREEN®rTEX, the fabric to fabric (F2F) solution. The technology transforms waste textiles and clothing into polyester fibers. FENC is able to supply to major brand customers in large quantities. In the future, the Company will continue to expand the production capacity. FENC’s seasoned experience and technological solutions on recycling PET bottles have led to the solution that repurposes waste clothing and textiles into new products, hence tremendously increasing the scope of recyclable materials.
★ FENC®TOPGREEN®rTEX Filament Textile Recycling Solution
Textile Recycling
Sorting & Cutting
Pelletizing
Spinning
Recycled Textile
FENC’s proprietary FENC®TopGreen®ChemCycle is a chemical recycling technology that recycles not only waste PET bottles, which is rather simple in composition, but also waste PET products that are much more complex, such as textiles, apparels and packaging products. These waste products are transformed into one of the main raw materials for polyester, rPTA, through FENC®TopGreen®ChemCycle, delivering comparable quality to virgin polyester made of petrochemical sources. The rPTA can then be applied to produce all polyester products. The Company has obtained patents in Taiwan, Australia and the U.S., and testing on the applications of FENC®TopGreen®ChemCycle towards bottle to bottle (B2B), fabric to fabric (F2F) and label to label (L2L) have been completed. The Company is forming partnerships with major international brands and developing downstream applications. In the future, the Company will continue to lead sustainable development in the industry with additional technological innovations.
To protect the marine habitat, FENC forms partnerships with its customer, adidas, and the NGO, Parley for the Oceans, to develop recycled ocean plastic, which can be used to produce brand new products out of waste PET bottles from the ocean. However, these PET bottles tend to contain higher percentages of impurities. FENC is able to consolidate its resources to overcome technological challenges. With its core strengths in polyester synthesis, recycling and remanufacturing, the Company produces rPET resins that enhance the tenacity of recycled ocean plastic and ensure yarn quality.
Currently, FENC is the largest producer of recycled ocean polyester filament in the world. As of the end of 2021, FENC has successfully averted over 11,000 metric tons of plastic waste from the ocean, and turned them into nearly 60 million pairs of high-end sports footwear and 30 million functional apparels. FENC has made a significant contribution to the protection of marine habitat with its proprietary ocean waste recycling and remanufacturing technology.
On October 21, 2021, Ocean Conservation Administration of Ocean Affairs Council established the Marine Debris Recycling Coalition. The coalition aims to establish a circular industry chain targeting ocean waste by connecting suppliers with innovative waste recycling solutions in the field of circular economy. In 2020, prior to the establishment of the Marine Debris Recycling Coalition, FENC was invited to partake in the planning process and organizational operation. The Company was in charge of remanufacturing the ocean waste. In the future, the Company will continue to build its momentum in circular economy, creating the recycling and reuse system for ocean waste with members of the coalition.
On December 13, 2021, OGM received the memo from Taoyuan City Government to sign the Letter of Intent for the collaboration to reduce the impact of waste PET bottles on the marine habitat. Taoyuan City Government provides waste PET bottles from the ocean to OGM without compensation. In return, OGM provides 38 clothing items produced with the waste materials for every metric ton of waste PET bottles processed. The Letter of Intent, which is effective for 3 years, went into effect on June 4, 2021. It is the hope from both parties that this government-industry collaboration will promote the reuse of recycled waste PET bottles.
Considering the drastically deteriorating climate patterns, carbon reduction is critical. The world is turning its gaze to ways of looping captured carbon back to the production process.
In 2021, FENC formed collaborations with major international corporations, lululemon, ZARA and LanzaTech to turn waste gas into apparels. Utilizing LanzaTech’s carbon capture technology, waste gases collected from the steel plant is converted to ethanol and then polyester materials, which contain 30% bio-based ethylene glycol. The finished product, FENC®TOPGREEN®Bio3 PET, becomes the raw material for apparel, footwear and textile products. In July 2021, lululemon released the world’s first yoga apparel made of waste gas from the steel plant. In December 2021, ZARA introduced the little black dress made with the carbon capture technology.
Relying on over 30 years of recycling expertise and its vertically integrated supply chain, FENC pioneered the world’s first apparel item made of waste gas. The material parallels the quality of those made of petrochemical sources. The technology also reduces 30% GHG emissions, setting a bright sustainable course for the industry.
★ FENC®TOPGREEN®Bio3 PET
Developing Wide Array of Circular Product Applications
In 1988, FENC established the first PET bottle recycling plant in Taiwan. By revamping the production process, the Company made quantum leaps in the quality of rPET it produced. The Company went even further by introducing innovations to the recycling technology, expanding the scope of recyclable materials to include textiles. In addition to beverage bottles, non-food-grade packaging, apparels, shoe materials and home products, FENC also produces highly technical products such as industrial grade fibers as in the case of its collaboration with Continental AG, the German tire brand. Over 2 years of research and development bore fruit in 2021 with the release of the tire cords made out of recycled PET bottles. This collaboration is a remarkable breakthrough in circular economy. With the ability to produce raw materials from waste PET bottles as well as recycled apparel and textile products, the Company has successfully developed a wide range of green products. In the future, the Company will expand the applications further to help brand customers fulfill their sustainable commitments.
Applications of Recycled Waste PET Bottles
Constructing Global Recycling Business
FENC is expanding its recycling business frontier. In 2021, FENC’s annual production capacity of rPET exceeds 300,000 metric tons, making FENC the second largest supplier in the world. Its production sites span across the Pacific Ocean in Taiwan, Mainland China, Japan and the U.S. The recycling empire continues to grow. The Company has announced the plan to construct the new Kansai Plant in Japan. Expansions are also underway in Vietnam, Malaysia and the Philippines. FENC is set to become the largest rPET producer in 2025.
1988FENC invested in building the first PET bottle remanufacturing plant in Taiwan – Taiwan Resources Recycling Co., initiating circular economy production model with waste recycling and reuse.
2006FENC obtained 100% of the shares of Taiwan Resources Recycling Co., which is consolidated into the recycling business unit of Oriental Resources Development Limited.
2010FENC expanded green production into Mainland China, launching rPET production at FEIS.
2012FFENC established Far Eastern Ishizuka Green PET Corporation (FIGP), expanding its production territory to Japan.
2016Production began in Plant 2 in Taiwan. Manual bottle recycling is now replaced by machines, which expands the processing capacity to over 50% of waste PET bottles in Taiwan.
2019- FENC acquired the rPET manufacturer, Phoenix Technologies International, LLC.
- In light of growing demand for green products, the recycling business unit of Oriental Resources Development Limited is separated into Oriental Green Materials Ltd. (OGM).
2020FIGP built the second production line, which began production in 2021.
2021FIGP announced the construction of the third production line in the Kansai region, Japan. The move solidifies FENC’s leading status in the rPET industry in Japan.
In face of growing threats from climate change, FIGP Kansai Plant is introducing renewable energy systems such as the solar power. With building a net zero factory as the goal, the plant is also purchasing green electricity to promote energy and carbon reduction. In addition, FIGP has collaborated on green financing in the amount of ¥5 billion with Mizuho Bank for the construction of the Kansai Plant. The fund will be used towards the establishment of recycling operation and green production to expand the production capacity and enhance the plant’s performance in promoting circular economy. This financing project is unprecedented among the overseas subsidiaries of Taiwanese corporations, in which sustainable financing is sought. Since 2019, FIGP has been building a 100% PET closed loop in Tokyo with 7-ELEVEN Japan. In 2021, the plant made an agreement with Himeji City and Ito En, Ltd. on forming the 100% PET closed loop. In the future, the plant will recycle waste PET bottles from the city and deliver them to the Kansai Plant and local bottling plant. The finished PET bottles will be used by Ito En, Ltd. It is anticipated that when the Kansai Plant inaugurates in 2024, FIGP will be able to process 270,000 metric tons of waste PET bottles each year with 190,000 metric tons of rPET production capacity, taking a healthy bite out of the market share at 50%.
▲ A 100% PET Closed Loop Among FIGP, Himeji City and Ito En, Ltd.
in rPET
in Food-Grade rPET
Recycled Polyester Filament Supplier
in Recycled Ocean Polyester Filament
Recycling and Remanufacturing Supplier Recognized
by Japan Containers and Packaging Recycling Association
FENC’s contribution to waste reduction in 2021:
20,000,000,000 PET bottles/year
The bottles may circle the earth 115 times.
Compared to conventional production using fossil fuel, producing PET resins with recycled PET bottles reduces GHG emissions by 63%.
FENC’s contribution to carbon reduction in 2021: 580,000 tCO2e/year
The equivalent of carbon absorbed by 58,000 hectares of forests or annual carbon emissions from 320,000 households.
Note: The values of electricity carbon emission factors in Taiwan, carbon absorption per hectare of forests and monthly electricity consumption per household are based on data published by Taiwan Power Company
Food-grade Approval
Recycled Content Certification
Green Mark
A Model of Sustainable Value
FENC is the proprietor of multiple recycling technologies and green products with a global deployment of green production. The Company is also eager to share its experience in the development of circular economy through external engagements. In 2021, FENC accepted invitations to speak during events featuring circular economy in Taiwan. The Company was also conduct exchange on the subject with business counterparts from Indonesia and Australia as well as governmental officials. The Company will continue to raise public awareness on sustainability through the promotion of green products.
1/18Representatives from Indonesian Economic and Trade Office in Taipei and the business delegation visited FENC at the Far Eastern Plaza. During the meeting, FENC presented its green product applications and circular economy technologies. The exchange is beneficial for the Indonesian business community to establish the recycling and reuse system for waste plastics. It also presents an opportunity to promote FENC’s green products to Indonesia while the Company evaluates the plan the build its recycling production in Indonesia for the future.
3/17Katsushika City in Tokyo and Japan Soft Drink Association signed the cooperation agreement to collaborate on the recycling of PET bottles in Katsushika City. In the future, FIGP will apply the B2B model to transform the PET bales from the city into rPET resins, which will then be utilized by corporate members of Japan Soft Drink Association.
4/16FENC was invited to speak on the topic of The Path To Revolutionize Ocean Plastic during the Circular Economy Lecture Series at Hsing Tian Kong Community School, The aim was to raise public awareness on the protection of marine habitat. The Company shared its experience in recycling PET bottles from the ocean and transforming them into functional apparels as well as footwear to remind the public to value the marine habitat. It is the hope that those in attendance will spread the concepts of circular economy and sustainable development further in their communities.
9/28FENC was invited by the Environmental Protection Administration to attend an online bilateral meeting between Taiwan and Australia for in-depth discussions on recycling and circular economy with the business communities from both sides. Among the representatives from Australia are Brent Moore, Deputy Representative and Senior Trade and Investment Commissioner, Australian Office, as well as Gayle Sloan, Chief Executive Officer of Waste Management and Resource Recovery Association of Australia. FENC shared its vertically integrated supply chain for green products and recycling technology, showcasing its competitive edge in the green industry in Taiwan. The meeting presents an opportunity to initiate collaborative efforts between Taiwanese and Australian businesses to promote environmental protection and create values through circular economy.
11/7FENC provided assistance to Environmental Protection Administration of Executive Yuan and Circular Taiwan Network with the production of CC4CC Accelerating Circular Collaboration for Climate Crisis, a video for Taiwan Day, which was held on the sidelines during United Nations Framework Convention on Climate Change (UNFCCC) Conference of the Parties (COP26). The video features FENC’s special rPET technology and vertically integrated production that turn waste PET bottles into functional apparels. The innovation greatly reduced energy consumption and carbon emissions, showing the world Taiwan’s contribution to mitigating the global climate crisis.
Video produced by Environmental Protection Administration of Executive Yuan and Circular Taiwan Network
