TAIPEI (Taiwan News) — Yes-Tek, a company that started as a producer of plastic materials for compact discs, has diversified its operations to include recycling.

The company now accepts large volumes of used CDs, grinding them in a chipper, with chemical processes separating plastic material before pelletizing. The company's plastic material meets the demanding specifications required by HP and Tesla, per UDN.

As demand for CDs began to decline, Taiwan's government encouraged manufacturers to take on the task of recycling. Yes-Tek General Manager Larry Lai (賴明德) said the company took notice of global trends such as sustainability and circular economy,  leading it to take plastics recycling more seriously, per UDN.

Tony Chen (陳松柏), technical manager at Yes-Tek, said the company is the only one in Taiwan that legally qualifies as a CD recycling plant and the producer of optical-grade dyes and plastic material. The company's CD recycling operations have made tremendous advancements, as it can now make plastic particles that are temperature-resistant, impact-resistant, and pressure-resistant.

Chen said the company's experience with materials led it to develop high-quality plastics for specific industries. For example, personal computer makers required plastics that were light-transmitting, while Tesla required material that could resist collisions.

According to Chen, exports to Europe and the US account for about one-third of output, with Southeast Asia accounting for more than half. He said more clients have begun to expand operations in Southeast Asia over the past two years.

He said the automobile supply chain is relatively mature and complete, with plastics and rubber accounting for a large proportion of each vehicle. Chen added that the company's ability to innovate makes it a top choice for overseas partners.