SMX Announces Collaboration with Tradepro Inc. to Complete a Proof of Concept to Bring Enhanced Digitalization of Tracking, Tracing, and Reporting Across the Plastic Supply Chain
SMX (Nasdaq: SMX) has announced a collaboration with Tradepro Inc. to enhance digital tracking and reporting within the US plastic supply chain. The initiative aims to transition from paper-based to digital and physical marker systems for post-consumer recycled materials, promoting material efficiency and sustainability. The collaboration is expected to establish a new industry standard for transparent, auditable, and accountable reporting. Joint commercial sales are anticipated to begin in Q1 2025.
Additionally, SMX's technology will also be used to improve the traceability of natural rubber, aligning with the EU Deforestation Regulation. This will help ensure ethical sourcing and sustainability, benefiting companies with transparent supply chains.
- The collaboration with Tradepro Inc. could create a new industry standard for digital and physical marker systems in the US plastic supply chain.
- The project aims at enhancing material efficiency, promoting sustainability, and reducing operational waste in the plastics sector.
- Joint commercial sales are expected to start in Q1 2025, indicating a clear timeline for revenue generation.
- SMX's technology will help companies meet regulatory compliance with the EU Deforestation Regulation, benefiting those with transparent supply chains.
- No negative aspects reported.
Insights
The collaboration between SMX and Tradepro Inc. represents a significant advancement in the digitalization of the plastic supply chain. By integrating SMX's technology with Tradepro's operations, the initiative aims to enhance traceability and transparency using physical markers and digital platforms. This approach addresses long-standing issues of inefficiency and lack of accountability in the plastics sector.
One key aspect is the potential creation of a new industry standard for reporting recycled content. This could lead to broader adoption of circular economy principles, promoting sustainable practices across the industry. However, it requires wide-scale adoption to realize its full potential.
In the short term, the collaboration is likely to attract interest from environmentally-conscious businesses and regulators. Long-term, successful implementation could result in a more sustainable and compliant plastics industry, setting a new benchmark for other sectors.
From a market perspective, the joint effort by SMX and Tradepro Inc. to digitalize the plastic supply chain could position both companies as leaders in sustainability and compliance. The ability to track and trace materials through advanced digital means is becoming increasingly critical, particularly with stringent regulations like the EU Deforestation Regulation coming into play.
For investors, this collaboration offers an opportunity to tap into the growing demand for transparent and compliant supply chains. Companies that can demonstrate adherence to rigorous standards may gain competitive advantages and customer trust. However, the market's reception will depend on the scalability and effectiveness of the implemented solutions.
While the initiative presents promising potential, stakeholders should monitor its development closely to assess the actual impact on market dynamics and regulatory compliance.
New York, New York--(Newsfile Corp. - July 9, 2024) - SMX (Security Matters) PLC (NASDAQ: SMX) (NASDAQ: SMXWW), a pioneer in digitizing physical objects for a circular economy, has announced today a collaboration with Tradepro Inc., headquartered in Miami, Florida, to complete semi industrial testing for the marking of PCR, or post-consumer recycled, materials to help US organizations transition from linear to a circular reporting operation for plastics and, more importantly, "move to material efficiency" within the sector.
Tradepro Inc. and SMX are delighted to collaborate to help and bring enhanced digitalization of tracking, tracing, and reporting across the plastic supply chain within the US, backed by the SMX platform and physical markers.
The collaboration is expected to help create, eventually, a new industry standard to move from existing reporting which is human, paper and self-reporting, to delivering a standard which is based on digitalization and a physical marker that will enhance the material efficiency where real value, data and accountability can be delivered across the plastics sector while removing operational waste for companies.
The collaboration aims to deliver a trusted, auditable and transparent solution for recycled content across all plastic materials in a sustainable and compliant manner to help support the Sustainable Management of Plastics as strategized by the United States Environmental Protection Agency.
SMX and Tradepro Inc. look forward to start joint commercial sales Q1 2025.
SMX Technology Advantages
SMX technology provides a comprehensive solution that ensures:
- Traceability spanning the entire ecosystem of the marked material from origin to final product - without altering the commodities' original characteristics.
- Location-based reporting on material and quality
- Adherence to industry best practices
- Transparent reporting throughout the supply chain
- Regulatory & compliance reporting on supply chains and products from origin to final product sale through a secure digital platform
- Enabling near real-time EUDR reporting with information held on the blockchain, satisfying the minimum five-year document storage required by EUDR regulations
Addressing the Complex Supply Chain of Natural Rubber
It has been reported that the natural rubber consumed in the EU is mostly imported with a significant amount produced by small holders. SMX believes that this makes ensuring transparency and traceability extremely challenging. Unsustainable rubber production can lead to deforestation, biodiversity loss, and adverse impacts on smallholders' living conditions, local communities, and workers' rights.
SMX believes that the inclusion of natural rubber in the EU Deforestation Regulation will benefit companies with transparent supply chains, such as those that use SMX's solutions. The new regulation sets strong mandatory due diligence rules for companies that place relevant products on the EU market or export them, ensuring deforestation-free and legal production.
SMX "Plantation to Market" Technology Platform
The integration of SMX technology in the natural rubber supply chain is expected to enable end-to-end traceability and transparent output in terms of Chain of Custody from downstream sources to finished goods sales. Brands will be able to tangibly authenticate and provide irrefutable proof of quality, quantity, and origin, including ethical sourcing and sustainable farming practices, for credible ESG reporting to stakeholders, customers, auditors, and regulators.
SMX technology can address the challenge of ESG criteria, ethical sourcing, and EU deforestation compliance, allowing for digitizing the supply chain in the "first mile" and enabling the movement of natural rubber downstream along with a digital record. The SMX marker can scan and report on the origin location where it was added and first scanned, allowing companies to report in near real-time on all aspects of natural rubber products at any stage of the supply chain.
References:
¹ Regulation (EU) 2023/1115 of the European Parliament and of the Council of 31 May 2023
Web: https://eur-lex.europa.eu/eli/reg/2023/1115/oj
² EUDR - EU Deforestation-free Regulation
Web: https://www.global-traceability.com/eudr-eu-deforestation-free regulation/?gclid=CjwKCAjw44mlBhAQEiwAqP3eVpS-C0Xy0-XBmk5NwtADuaaSFA1hj6fO6KybKtk9RIjFU_N4h4IEWhoC0eIQAvD_BwE
³ EU adopts new rules for deforestation-free products
Web: EU adopts new rules for deforestation-free products | White & Case LLP (whitecase.com)
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About SMX
As global businesses face new and complex challenges relating to carbon neutrality and meeting new governmental and regional regulations and standards, SMX is able to offer players along the value chain access to its marking, tracking, measuring and digital platform technology to transition more successfully to a low-carbon economy.
About Tradepro Inc.
For over 35 years, Tradepro Inc. has been a trusted partner in the plastics recycling industry. Expected for 2024, Tradepro Inc. will procure and distribute over 85,000 metric tonnes of recycled plastic materials. Tradepro Inc. specialize in the procurement and distribution of plastic raw materials. Their foundation is built on unwavering reliability. They are driven to consistently deliver the highest quality materials to their global customer base. Tradepro Inc. envision a world where resources are valued, ethically sourced, and repurposed towards a cleaner, greener planet of tomorrow. Visit us at : tradepro.com/
Forward-Looking Statements
The information in this press release includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements regarding expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipate," "believe," "contemplate," "continue," "could," "estimate," "expect," "forecast," "intends," "may," "will," "might," "plan," "possible," "potential," "predict," "project," "should," "would" and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this press release may include, for example: successful launch and implementation of SMX's joint projects with manufacturers and other supply chain participants of steel, rubber and other materials; changes in SMX's strategy, future operations, financial position, estimated revenues and losses, projected costs, prospects and plans; SMX's ability to develop and launch new products and services, including its planned Plastic Cycle Token; SMX's ability to successfully and efficiently integrate future expansion plans and opportunities; SMX's ability to grow its business in a cost-effective manner; SMX's product development timeline and estimated research and development costs; the implementation, market acceptance and success of SMX's business model; developments and projections relating to SMX's competitors and industry; and SMX's approach and goals with respect to technology. These forward-looking statements are based on information available as of the date of this press release, and current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties. Accordingly, forward-looking statements should not be relied upon as representing views as of any subsequent date, and no obligation is undertaken to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws. As a result of a number of known and unknown risks and uncertainties, actual results or performance may be materially different from those expressed or implied by these forward-looking statements. Some factors that could cause actual results to differ include: the ability to maintain the listing of the Company's shares on Nasdaq; changes in applicable laws or regulations; any lingering effects of the COVID-19 pandemic on SMX's business; the ability to implement business plans, forecasts, and other expectations, and identify and realize additional opportunities; the risk of downturns and the possibility of rapid change in the highly competitive industry in which SMX operates; the risk that SMX and its current and future collaborators are unable to successfully develop and commercialize SMX's products or services, or experience significant delays in doing so; the risk that the Company may never achieve or sustain profitability; the risk that the Company will need to raise additional capital to execute its business plan, which may not be available on acceptable terms or at all; the risk that the Company experiences difficulties in managing its growth and expanding operations; the risk that third-party suppliers and manufacturers are not able to fully and timely meet their obligations; the risk that SMX is unable to secure or protect its intellectual property; the possibility that SMX may be adversely affected by other economic, business, and/or competitive factors; and other risks and uncertainties described in SMX's filings from time to time with the Securities and Exchange Commission.
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FAQ
What is the focus of SMX's collaboration with Tradepro Inc.?
When are SMX and Tradepro Inc. planning to start commercial sales?
How will SMX's technology benefit the natural rubber supply chain?
What are the key benefits of SMX's technology for the plastic supply chain?
What is the expected outcome of the SMX and Tradepro Inc. collaboration?
