U.S.-based polylactic acid (PLA) manufacturer NatureWorks announced it has secured a $350 million from state-owned Krungthai Bank, Thailand’s third largest bank.
The funds will finance NatureWork’s Ingeo PLA manufacturing plant in Nakhon Sawan Province, Thailand. The facility is currently under construction and is reportedly on track to start production in 2025.
The nine-figure financing from Krungthai Bank is one of the largest loans in the bank’s decades-long history. The bank’s decision is a recognition of NatureWorks’ position as the world’s leading bioplastics manufacturer, the facility’s ability to create jobs for local farmers, and the companies’ shared values about the circular economy, it said in a statement.
“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 bio economy,” said Erik Ripple, President and CEO of NatureWorks. “The funding will enable us to expand our international customer access to fully bio-based, low-carbon biomaterials that feature unique performance attributes valued by global downstream packaging and fibre markets.”
The new manufacturing complex will be located at the Nakhon Sawan Biocomplex (NBC). The NBC is the first bio complex project in Thailand established in accordance with the government's BCG - Bio Circular Green - bio economy policy.
The area has a strong agricultural base that can provide large quantities of sugarcane feedstock. NatureWorks chose the site for its proximity to where sugarcane is grown, with established infrastructure for processing sugarcane into a sugar feedstock for the fermentation process, and the availability of desired utilities.
As well as a 75,000 metric tons per year Ingeo PLA production plant, the project will include facilities for lactic acid and lactide production, making it the world’s first polylactide facility designed to be fully integrated. NatureWorks Asia Pacific, a wholly owned subsidiary of US-based NatureWorks LLC. will build and operate all three facilities.
The facility will produce the full portfolio of Ingeo biopolymers for applications such as 3D printing, non-wovens for hygiene, compostable coffee capsules, tea bags, flexible packaging, and compostable food service ware.