Suntech Recycle & Decarbon Co, a subsidiary of Millcon Steel Plc, has partnered with an auto dismantling firm in South Korea to acquire more unwanted cars for recycling, part of efforts to reach its ambitious goal next year.
The company signed a memorandum of understanding with Gangsan Group to ensure a higher supply of car scrap, helping it avoid a shortage of raw materials and related price fluctuations.
"This agreement will stabilise our raw material procurement as we will receive 5,000 unwanted cars a month from South Korea," said Suphamongkhon Manoch, chief operating officer of Suntech.
The company announced earlier it aims to recycle 36,000 end-of-life vehicles (ELVs) a month in 2023, up from 15,000 units.
Many parts of ELVs, including steel, copper and plastic, can be recycled, while hazardous waste from car scrap can be turned into refuse-derived fuel for power plants, according to Millcon.
Suntech operates a recycling factory in the eastern province of Rayong. The facility is designed to recycle unwanted cars, batteries from electric vehicles (EVs) as well as solar panels.
The company has imported ELVs from many countries, including South Korea, Japan, Australia and Latin American nations.
Gangsan Group is among the large companies operating unwanted car-dismantling businesses in South Korea. Gangsan also formed partnerships with auto giants such as Hyundai and Kia.
Suntech saw a good business opportunity to work with Gangsan because the South Korean government has a policy to support the car recycling business as it is shifting towards an EV society.
"Many countries recognise the importance of the recycling industry as it is another tool to solve environmental problems in a sustainable way," said Mr Suphamongkhon.
Recycling ELVs can also help Thailand reduce steel imports and, with more domestic supply of steel, the worry over high steel prices will be relieved.
Steel from the recycling process is less expensive than imported steel, the prices of which increased largely as a result of the Russia-Ukraine war.
Suntech will continue to seek more partners in order to further support and strengthen its recycling business.