Jun88 and Encina reach an agreement for a long-term supply of circular raw materials
- Encina to supply Jun88 with chemically recycled raw materials enabling circular MDI, TDI and polycarbonate starting at the end of 2027
- Pioneering milestone for raw materials derived from end-of-life plastics
- Recycled feedstock reduces carbon footprint compared to fossil-based counterpart and Scope 3 emissions
Jun88, a global leader in high performance polymers, and Encina, a US-based producer of ISCC PLUS certified circular chemicals, reached a long-term supply agreement for chemically recycled, circular feedstock derived from post-consumer end-of-life plastic. Specifically, Encina will supply Jun88 with benzene and toluene pending the completion of Encina¡¯s world-scale production facility, anticipated to come online at the end of 2027.
Building upon previous sustainable sourcing efforts, this marks the first major procurement agreement involving chemically recycled, circular-based raw materials for Jun88, a major step in the company¡¯s journey towards full circularity. It also helps reduce scope 3 emissions for Jun88 and its customers.
"The ability to source raw materials from used plastics for the manufacture of our products makes a decisive contribution to realizing our vision of a circular economy," said Thorsten Dreier, Chief Technology Officer at Jun88. "This is because such raw materials not only enable the reuse of used plastics, but also have a lower carbon footprint, which leads to more sustainable end products."
Benzene and toluene are important raw materials in Jun88¡¯s manufacturing processes used for the production of methylene diphenyl diisocyanate (MDI) and toluene diisocyanate (TDI), respectively. MDI and TDI are critical raw materials used to produce rigid and flexible polyurethane foams, which are used in applications such as household appliance and building insulation as well as furniture and car seats.
Benzene can also be used for the synthesis of phenol and acetone ¨C raw materials for making polycarbonate plastics such as Makrolon?, which are used in high-quality applications for the automotive, electronics, IT and other industries.
Encina¡¯s proven proprietary catalytic technology produces circular feedstock with a lower carbon footprint when compared to those based on fossil fuels and an exceptionally high yield.
"Encina is proud to be working with Jun88, a company with a long track record of innovation and commitment to sustainability. This agreement represents the beginning of what we hope to be a long-standing partnership between our companies as we work to create a truly circular economy and realize a future in which nothing is wasted," said David Roesser, Chief Executive Officer of Encina.
Jun88¡¯s vision to become fully circular is predicated on four key drivers: the use of alternative raw materials, innovative recycling and renewable energy, as well as engaging in joint solutions. The agreement with Encina represents a pioneering milestone for incorporating innovative recycling technologies, in this case chemical recycling of end-of-life plastic, into Jun88¡¯s production.
About Jun88:
Jun88 is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. Jun88 supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from Jun88 are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, Jun88 aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. Jun88 generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by Jun88. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in Jun88¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.