Packaging with care.
Thong Guan raises the bar sustainably.
Thong Guan Industries Berhad (TGIB) was founded in 1942 in Malaysia as a tea and coffee merchant under the brand name ‘888’. While continuing to build the ‘888’ brand in the manufacturing and trading of food, beverages, and other consumable products, TGIB expanded into the manufacturing of plastic packaging in the 70s. Today, TGIB is one of the Asia ’s largest plastic packaging companies with a distinguished track record.
In this fast-paced era of business globalization, TGIB has been continuously evolving to strive for sustainable growth. Over 80 years in business operations, TGIB has established well-diversified plastics packaging products and food and beverage businesses with a global presence in over 60 countries. As they continue to grow, they are increasingly cautious of their impact on the economic, social and environmental scales. Therefore, they strive to understand the matters that affect the Group’s sustainability and ensure that they identify and manage them accordingly.
Being one of the largest producers of cast pallet stretch film and garbage bags in this region, with an annual combined production output of more than 150,000 metric tons per annum, TGIB is committed to creating a safer, better and greener world in pursuit of their mission of becoming a sustainability advocator. They currently operate manufacturing facilities in Malaysia, China and Thailand. TGIB’s vision is to lead plastic packaging products towards a sustainable value chain and circular economy.
TGIB’s Environmental, Social, and Governance (ESG) Framework outlines its goal, key initiatives, and strategic action plans encompassing factors related to environmental, social and governance. The aim is to make sustainability easier to achieve through offering low-carbon products, sharing their successes, documenting the pitfalls encountered, challenges met, and how to overcome them for future improvements.
Their goal to be a world-class sustainable plastic packaging manufacturer making low-carbon products for society is bolstered by efforts that address operational eco-efficiency, circularity, human capital development, social contribution, ethics and transparency, and digitalization, among others.
TGIB invested RM 10 million to set up Newton Research & Development Centre Sdn Bhd. The ISO17025 certified R&D Centre is a key highlight of its sustainability endeavors and is also recognized by MIDA (Malaysian Investment Development Authority). It serves as a catalyst to facilitate their customers in reducing and optimizing the use of plastic packaging in their supply chain, improving load safety, minimizing reverse logistics and reducing wastage.
With measurable data available to customers, TGIB retains customer confidence in the quality of its film. The Centre is now also ISTA (International Safe Transit Association) certified and a member of EUMOS (European Safe Logistics Applications).
TGIB’s effort in matching its core strategies with the United Nations Sustainability Development Goals (SDGs) is intended to build economic growth and address a range of social needs, including education, health, social protection and job opportunities while tackling climate change issues through environmental conservation and preservation.
One of their notable efforts in keeping their environmental impact in check is through effective energy management by investing in operational and energy efficiency to reduce emissions in their operations. Their energy-saving project included changing the chiller and compressor system and control system from a direct online starter to a variable frequency drive. These transformations have brought considerable energy savings.
In 2018, TGIB began installing solar photovoltaic (PV) systems on the roofs of their factories to reduce their reliance on conventional energy. They have invested RM 11 million in PV systems at present, with more projects in the pipeline to increase the capacity of their PV systems as they expand their production floor and capacity. The Group also participated in the Green Electricity Tariff program by Tenaga Nasional Berhad to support the growth of Malaysia’s renewable energy.
In their bid to achieve zero plastic production waste by 2023, TGIB’s waste management approach covers both internal and external waste management. Through their ‘RE:USE’ and ‘RE:DO’ programs, suppliers’ and customers’ plastic waste is turned into recycled resins with their recycling capacity and know-how. This gives the supply chain’s plastic waste a purpose while allowing them to close the loop. All these efforts stem from TGIB’s aim to produce low-carbon products for its customers while retaining quality performance, which in turn reduce unnecessary embodied carbon footprint. Helping its customers achieve their sustainable goals creates more complete sustainability efforts throughout the supply chain. This represents a crucial step in their goal of a circular economy.
TGIB also began the process of getting certified based on two globally recognized standards. The aim is to solidify their commitment toward sustainability while helping their customers in achieving theirs. In 2021, TGIB was officially awarded an ISCC Plus certificate, which is proof of successfully audited production processes to achieve sustainability. This was followed by the Global Recycled Standard (GRS) certificate for recycled products, resins, and processes.
“Eighty years in business is a long time. Many businesses of a particular era struggle under the mandate of social and ecological change, but laudably, Thong Guan is not one of them. This Malaysian company matches their core strategies with the United Nations Sustainability Development Goals (SDGs) with the intention to build economic growth and address a range of social needs while tackling climate change issues through environmental conservation and preservation.”
Shanggari Balakrishnan, Chief Executive Officer, MORS Group