Krungthai Bank PCL has extended a landmark loan to NatureWorks, marking one of the largest in the bank’s extensive history, to bolster Thailand’s ambitious Bio-Circular-Green (BCG) strategy. NatureWorks, renowned for its production of polylactic acid (PLA) biopolymers derived from renewable sources, disclosed the historic financing from Krungthai Bank PCL, valued at $350 million USD (12,600 million Baht Equivalent). This substantial loan underscores Krungthai Bank’s confidence in NatureWorks’ market leadership and global economic impact.
In line with its commitment to environmental, social, and governance (ESG) principles and sustainable finance solutions, Krungthai Bank has financed NatureWorks’ latest manufacturing facility for Ingeo PLA biopolymers, a bio-based material pivotal in plastic and fiber applications. The funding will facilitate the construction and operational needs of the plant. NatureWorks was selected for its forefront position in defining bioplastic technologies, aligning with Thailand’s Bio-Circular-Green (BCG) economy vision, which aims to foster sustainability, innovation, and values-based economic growth through technological advancements and leveraging Thailand’s biodiversity.
Erik Ripple, President and CEO of NatureWorks, remarked, “This backing from Krungthai Bank not only validates our strategic global positioning within Thailand and the Asia Pacific region but propels us toward continued expansion to support the worldwide bioeconomy.” The funding will enable NatureWorks to broaden access to fully biobased, low-carbon biomaterials in international markets, catering to the demands of downstream packaging and fiber industries.
NatureWorks’ second facility, situated at the Nakhon Sawan Biocomplex, aligns with Thailand’s BCG Economic Model, leveraging the region’s robust agricultural sector, particularly sugarcane production. The chosen site offers proximity to sugarcane sources, established infrastructure for processing sugarcane into sugar feedstock, and requisite utilities for plant operations.
Suratun Kongton, Chief Wholesale Banking Officer of Krungthai Bank, emphasized, “Thailand is a frontrunner in fostering a global bioeconomy transition, with commercial banks playing a pivotal role.” Krungthai Bank’s financial support to NatureWorks reflects a commitment to advancing Thailand’s BCG model and addressing climate change while fostering a circular economy.
Narongsak Jivakanun, NatureWorks Board Chair and CEO of PTT Global Chemical Public Company Limited (GC), hailed the investment as monumental for NatureWorks, Cargill, and GC, underscoring its significance in advancing environmentally friendly bio-chemicals and biomaterials.
The new manufacturing facility is set to be a fully-integrated PLA complex, boasting production sites for lactic acid, lactide, and polymer. With an annual capacity of 75,000 tons of Ingeo biopolymer, it will cater to diverse markets across the Asia Pacific region, including 3D printing, nonwovens, compostable coffee capsules, flexible packaging, and food serviceware. Construction is underway to support projected start-up activities and full production by 2025.
For further updates on NatureWorks’ global expansion of bioplastics, visit natureworksllc.com or follow the company on LinkedIn.
