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New Industrial Revolution

September 01, 2019
Gold is extracted from unwanted components and shaped into ingots. (Photo courtesy of Super Dragon Technology Co.)

Taiwan companies are developing technologies and materials to help realize cradle-to-cradle manufacturing.

Super Dragon Technology Co. based in northern Taiwan’s Taoyuan City has a time-honored business model: mine and sell precious metals like gold, silver and platinum. What makes it stand out is that these valuable commodities are extracted from objects that other enterprises and consumers throw away.

The company is an expert in turning electronic waste into revenue. “After years of R&D on metal extraction and recovery processes, we came upon a workable circular business model based on three paradigms: reduce, reuse and recycle,” said Cosmas Lu (陸怡豪‬), a strategy adviser with Super Dragon. “This approach not only opens up new commercial opportunities but also protects against resource shortages and environmental degradation.”

Regular upgrading of electrical appliances and goods such as computers, printers and smartphones is producing vast quantities of electronic waste. This is now the fastest growing type of garbage in the world. Such items are conventionally either incinerated or placed in landfills. Both methods are hazardous to the environment as they emit harmful gases and release toxic substances into soil and groundwater.

Founded to maximize efficient use of resources, Super Dragon is dedicated to reclaiming materials from electronic waste by applying chemical and physical recycling processes. Recovered metals can be made into sand or refined and formed into bars, and nonmetals like fiberglass and epoxy resin can be used for bricks or wall tiles.

Nonmetals recovered from electronic waste like fiberglass and epoxy resin are used to produce a wide variety of goods including artworks and tiles. (Photos by Chen Mei-ling and courtesy of Super Dragon)

In 2008, the company became the first environmental technology business listed on the Taiwan Stock Exchange. It currently offers industrial waste disposal services to many manufacturers in the electronics supply chain. Any valuable substances extracted are then offered back to customers as raw materials.

In this way, the firm serves as a crucial step in the cradle-to-cradle (C2C) design process. Rapidly gaining prominence over the past few decades, C2C refers to systems and production methods in which resources circulate in a sustainable manner. This includes the use of renewable energy and recycling of waste materials, standing in contrast to the conventional cradle-to-grave (C2G) model.

“We’ve invested heavily in improving our facilities and technical know-how to facilitate a C2C approach,” Lu said. “We hope to inspire other companies to adopt eco-friendly industrial systems.”

Public-Private Partnerships

Taiwan has made remarkable progress over the past few decades in waste recycling and treatment, said Lo Ta-sheng (羅達生), director general of the Department of Industrial Technology (DOIT) under the Ministry of Economic Affairs, with many companies now looking to reuse materials leftover at the end of the production process.

According to Lo, the government is striving to transform domestic industries from C2G to C2C models to ensure that products and materials are kept in use for as long as possible. “Taiwan is highly dependent on imports due to the nation’s limited natural resources,” he said. “Making such changes can deliver long-term economic, social and environmental benefits.”

Polyethylene terephthalate resins reclaimed from ocean garbage by New Taipei City-based Oriental Resources Development are utilized to make shoes under a collaborative project with multinational sportswear brand Adidas and conservation charity Parley for the Oceans. (Photos by Chen Mei-ling and courtesy of Oriental Resources Development)

The DOIT has tasked a number of research institutions with developing new materials and technologies that can serve as the basis of the circular economy. These include state-backed Industrial Technology Research Institute (ITRI) in the northern county of Hsinchu, Metal Industries Research and Development Center (MIRDC) in the southern metropolis of Kaohsiung and Plastics Industry Development Center in the central city of Taichung.

One of the businesses that has benefitted from collaborating with these organizations is New Taipei City-based Oriental Resources Development. Founded in 1998 under the Far Eastern Group, it was the first company in Taiwan engaged in recycling discarded polyethylene terephthalate (PET) bottles.

Each year, about 5.2 billion used PET bottles are collected around the country. Piled vertically, they would be three times the height of Taipei 101, the capital’s iconic 509.2-meter skyscraper. Despite the large numbers, Taiwan boasts one of the world’s highest PET bottle recycling rates at about 95 percent, according to the Environmental Protection Administration.

Fanny Liao (廖瑞芬), president of Oriental Resources, said the high proportion can be attributed to the government’s implementation of a four-in-one program introduced in 1997 fostering cooperation between a centrally controlled recycling fund, community residents, local governments and relevant industries. She also highlighted the nation’s adoption of a producer responsibility strategy that requires importers and manufacturers of new products to finance collection and recycling enterprises.

Oriental Resources handles nearly half of the used PET bottles collected nationwide. (Photo courtesy of Oriental Resources)

Oriental Resources currently handles nearly half of the used PET bottles recovered nationwide and transforms them into high-quality resins that can be made into fabrics, fibers or food-grade containers. Its main clients include the U.S.-based Coca-Cola Company and PepsiCo, as well as France-headquartered Danone SA.

Together with these multinationals and ITRI, the Taiwan company has been working to develop a new bio-based polyester—polyethylene furanoate—that is 100 percent recyclable and can produce lighter, thinner and more durable bottles. 

“There is growing demand for [food-grade] resins as top corporations are seeking to transfer to biodegradable, compostable or recyclable packaging,” Liao said. “The fact they chose to work with us is proof of our standing within the industry.”

Material Changes

While Super Dragon and Oriental Resources are focused on collecting and recycling end-of-life products, other companies like Hsin Yung Chien (HYC) Co. in central Taiwan’s Nantou County are committed to developing innovative recyclable and renewable materials. Established in 1964, HYC is Taiwan’s largest producer of rubber conveyor belts.

The long carbon fiber reinforced thermoplastic composite developed by Hsin Yung Chien Co. in central Taiwan’s Nantou County in collaboration with Industrial Technology Research Institute is recyclable and has high impact tolerance. (Photo by Chen Mei-ling)

“For a traditional manufacturer like us to survive and thrive, we need to transform and upgrade,” HYC President Lin Chi-chin (林季進) said. “So we decided to implement circular business strategies and explore different opportunities.” As part of this process, the company has engaged in R&D of new composite materials in cooperation with ITRI and MIRDC.

Working with ITRI’s Material and Chemical Research Laboratories in 2017, HYC developed a new form of long carbon fiber reinforced thermoplastic composite (LFT). Its properties are ideally suited for the circular economy, Lin said.

LFTs are durable, lightweight, recyclable and reusable with high impact tolerance and strength, meaning they can be used as metal substitutes. Comparatively, their conventional counterparts, thermoset composites, require more energy to produce and are difficult to recycle, usually being sent to incinerators or landfills.

According to Lin, the excellent properties of HYC’s LFT mean that it can be used in a wide variety of industries ranging from information technology and sports to transportation and wind energy infrastructure.

Lin Chi-chin, president of HYC, showcases his company’s prototype LFT bike frame. (Photo by Chen Mei-ling)

HYC first launched the material commercially as part of a venture with ACE Co., Japan’s leading producer of high-quality briefcases and luggage. The collaboration led to the release of the world’s lightest 20-inch suitcase at 1.7 kilograms, priced at 59,000 yen (US$543).

Having tested the market readiness of its creation, HYC is rolling out LFT bike frames. The company unveiled a prototype at the Taipei Cycle Show held at Taipei Nangang Exhibition Center March 27-30 that has attracted interest from top cycling brands such as Accell Group and Giant Manufacturing Co., headquartered in the Netherlands and Taichung, respectively.

“Shifting our R&D efforts to the development of recyclable and renewable materials was the right decision, especially considering the global environmental situation,” Lin said. “Thanks to ITRI’s technical assistance, we’re confident we can capture the growth opportunities ahead.”

These sentiments are shared by the DOIT’s Lo, who reiterated the importance of using sustainable materials. “Enacting circular solutions is a crucial element of corporate social responsibility,” he said. “Helping protect the planet while fostering industrial symbiosis is a win-win for all stakeholders.” 

Write to Kelly Her at kher@mofa.gov.tw

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