Company: SEAH
Filing Date: 2025-08-29
Form Type: DRS/A
Source: 0001213900-25-082696
Chunk: 94

Company: Seahawk Recycling Holdings, Inc.
Filing Date: 2025-08-29
Form: DRS/A
Chunk 94
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 and Indonesia, has led to an increased reliance on cost -efficientrecycled fiber. The rate of wastepaper recycling in the production of pulp and paper in Asia has increased from 54.2% in 2019 to 59.5% in 2024, and it is forecast to reach approximately 66.1% by 2029. This upward trajectory signals industry -wideoperational transformation, driven by stringent environmental mandates and technological upgrades in de -inkingand sorting that enable higher -qualityrecovered fiber utilization. Looking ahead, it is anticipated that the consumption of paper in Asia, excluding Japan, will continue to grow and reach 132.0 million tons by 2029, with a moderate CAGR of 1.1%, driven by the ongoing development of the global circular economy, as well as by the ongoing substitution of plastic for packaging. Source: The Frost & Sullivan Report Market Outlook of Paper Recycling in Asia The growth of Asia’s waste paper consumption market and optimization of the supply chain continues to be driven by policy support and increased environmental awareness. Notably, China’s Import Ban of Solid Waste launched in 2021, which prohibits the import of waste paper, has prompted companies to establish closed -looprecycling networks, contributing to the enhancement of local recycling systems. Furthermore, China and several Southeast Asian countries, including Thailand and Vietnam, have adopted the Extended Producer Responsibility (the “EPR”) system, which imposes obligations on companies to assume responsibility for the environmental impacts throughout the product’s life cycle, from its design to its waste disposal. These policy shifts have fundamentally changed the recycling landscape across Asia. With China no longer accepting imported waste, neighboring countries are now under pressure to develop their own recycling capabilities to manage increasing waste volumes. This has led to significant investment in domestic recycling infrastructure throughout the region, as countries adapt to handle waste that was previously exported to China. Conversely, the radiation effects of the UN Global Plastics Treaty and the EU Packaging and Packaging Waste Regulation (the “PPWR”) will continue to incentivize Asian companies to replace plastic packaging with waste paper. The synergies between policy and circular economy objectives will drive continued growth in Asia’s paper consumption market. The Asian region is a key producer and consumer of pulp and paper on a global scale. In comparison with virgin pulp, the price of waste paper is more stable and lower cost. This is particularly advantageous in contexts where resources are scarce and prices are volatile. In Asia, particularly in Southeast Asia, labor costs are relatively low, 66 which makes