Press Release

Based on CO2-derived material as well as renewable and bio-based materials, jointly established by seven companies across five countries

Bangkok, Thailand, 11 July 2024 – Indorama Ventures Public Company Limited, a global sustainable chemical company, has joined a consortium of seven companies across five countries to jointly establish a supply chain for more sustainable polyester fiber. This has meant that renewable and bio-based materials, as well as materials produced via carbon capture and utilization (CCU para-xylene)^*2 will be used in the manufacturing of polyester fibers for THE NORTH FACE brand in Japan, instead of fossil materials. Alongside Indorama Ventures representing Thailand, the project parties that have taken part in the pilot are Goldwin, in the role of the Project Owner, Mitsubishi Corporation, Chiyoda Corporation (all three from Japan), SK geo centric (South Korea), India Glycols (India) and Neste (Finland).

The polyester fiber produced from the project is planned to be used by Goldwin, a leading Japanese company specializing in the design and production of high-performance sportswear and outdoor apparel, as part of THE NORTH FACE products. This will include sports uniforms starting from July 2024. After that, the launch of further products and brands under Goldwin, renowned for its innovation, quality, and commitment to sustainability, will be considered.

The seven companies apply a mass balancing approach to ensure credible traceability of material streams throughout the supply chain and will jointly continue to proactively promote the de-fossilization of materials to contribute to a more sustainable society.

Yash Lohia, Executive President of Petchem Special Projects, Indorama Ventures, commented on the collaboration: "We are proud to join forces with such esteemed partners in this groundbreaking initiative. At Indorama Ventures, we are deeply committed to advancing sustainable solutions, and this project exemplifies our dedication to innovation and environmental stewardship and making strides towards Indorama Ventures’ ‘Vision 2030’. By utilizing CO2-derived materials, renewable resources, and bio-based alternatives, collaborative effort demonstrates the power of global cooperation in creating a more sustainable future for the textile industry and beyond."

Caption: Full supply chain visualized to achieve sustainable polyester

Summary of definitions:

^*1 World’s first

This refers to the first time CCU para-xylene (direct synthesis from CO2) is applied and also to the first time a polyester is made without the use of fossil materials in collaboration among upstream material companies and a downstream apparel company through mass balancing, according to the companies’ research.

^*2 CCU para-xylene

Regarding the production of para-xylene derived from CO2 as a raw material, the University of Toyama, HighChem Company Limited, Nippon Steel Engineering Co. Ltd., Nippon Steel Corporation, Chiyoda Corporation and Mitsubishi Corporation were awarded in 2020 as a NEDO‘s project (New Energy and Industrial Technology Development Organization) "Technology Development for Carbon Recycling and Next Generation Thermal Power Generation/Technology Development for CO2 Emission Reduction and Effective Utilization" and are conducting the joint research and development. This project is to supply CO2-derived para-xylene as a trial, which was produced during the operation process of a pilot plant installed in Chiyoda Corporation's Koyasu Research Park since March 2022.

^*3 Mass balance / Mass balancing approach

A process that tracks the amount and sustainability characteristics of materials and enables allocation of such to a specific portion of the product in proportion to the input of the raw materials with sustainability characteristics, when they are mixed with other materials in the process of manufacturing and distribution of products.