NatureWorks’ Ingeo PLA Manufacturing Expansion Attracts Record Financing from Krungthai Bank PCL of Thailand
May 15 2024 - 9:32AM
Business Wire
One of the singular largest loans in the bank’s
decades-long history supports Thailand's ambitious
Bio-Circular-Green (BCG) strategy
NatureWorks, a leading manufacturer of polylactic acid (PLA)
biopolymers made from renewable resources, today announced the
historic financial support from Krungthai Bank PCL to optimize the
capital structure for the new fully-integrated Ingeo™️ PLA
manufacturing facility in Thailand. The financing from Krungthai
Bank, Thailand’s third largest bank, amounting to $350M USD
(12,600M Baht Equivalent), is one of the singular largest loans in
the bank’s decades-long history and shows confidence in
NatureWorks’ market leadership and global economic impact. Today,
the companies participated in a signing ceremony to celebrate this
milestone.
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the full release here:
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Executives from NatureWorks and Krungthai
Bank PCL finalized new financing for NatureWorks’ new
fully-integrated Ingeo PLA manufacturing facility in Thailand which
is on track to open in 2025. Pictured from left: Roger Kempa,
Interim CFO, NatureWorks; Erik Ripple, President & CEO,
NatureWorks; Suratun Kongton, Chief Wholesale Banking Officer,
Krungthai Bank; Saranya Assamongkol, EVP, Sector Head, Corporate
Banking Sector 7, Krungthai Bank (Photo: Business Wire)
In alignment with its ESG values and sustainable finance
solutions, Krungthai Bank funded NatureWorks’ newest manufacturing
facility for Ingeo PLA biopolymer, a biobased material used in
plastic and fiber applications. The funding will support the
construction of the plant and its ongoing operations. NatureWorks
was chosen because of its market leadership in defining bioplastic
technologies and how those solutions will move Thailand's
Bio-Circular-Green (BCG) economy forward. BCG leverages technology
and Thailand's biological diversity to enable a more sustainable,
innovation-driven, and values-based economy.
“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,” said Erik Ripple, President and CEO of
NatureWorks. “The funding will enable us to expand our
international customer access to fully biobased, low-carbon
biomaterials that feature unique performance attributes valued by
global downstream packaging and fiber markets.”
NatureWorks’ second facility will be located at the Nakhon Sawan
Biocomplex, the first bio-complex in Thailand established in
accordance with the BCG Economic Model. The area has a strong
agricultural base that can provide an abundant, locally available
feedstock in the form of sugarcane. 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
for the plant’s operation.
“Thailand is a regional and global leader in driving the
development of a global bioeconomy, and commercial banks play a
crucial role in driving this transition,” said Suratun Kongton,
Chief Wholesale Banking Officer of Krungthai Bank. “We’ve provided
NatureWorks with the financing because it is a world leader in
manufacturing biomaterials, meets the requirements to drive our
country’s BCG model forward, and aligns with our commitments to
address climate change and facilitate the transition to a circular
economy. NatureWorks is also creating additional high-value
downstream opportunities for existing sugarcane farmers in the
Nakhon Sawan region.”
“This investment is monumental for NatureWorks, Cargill, and GC
as it moves our joint commitment to environmentally friendly
bio-chemicals and biomaterials forward at a time where global
demand is increasing,” said Narongsak Jivakanun, NatureWorks Board
Chair, CEO of PTT Global Chemical Public Company Limited (GC).
“With this infusion of financial support from Krungthai Bank for
NatureWorks’ new PLA manufacturing facility, NatureWorks will
continue to be competitive in the biomaterials market, pioneering
new frontiers for bioplastic applications and advancing biobased
solutions with sufficient capacity to capture customer needs across
the growing Asia Pacific bioeconomy.”
The new manufacturing facility is designed to be a
fully-integrated PLA complex, including production sites for lactic
acid, lactide, and polymer. With an annual capacity of 75,000 tons
of Ingeo biopolymer, it will produce the full portfolio of Ingeo
grades and support the rapid market growth across many markets in
the Asia Pacific region, including 3D printing, nonwovens for
hygiene, compostable coffee capsules, tea bags, flexible packaging,
and compostable food serviceware. Ingeo biopolymers produced at
this site will be made from sugarcane sourced from farms within a
50-kilometer radius of the Nakhon Sawan site. Construction is on
track to support projected start-up activities and full production
in 2025.
To follow NatureWorks as it continues to make strides toward
global expansion of bioplastics, visit natureworksllc.com or follow
the company on LinkedIn or X (formerly Twitter).
About NatureWorks
NatureWorks is an advanced materials company offering a broad
portfolio of biopolymers and biochemicals made from renewable
resources. With performance and economics that compete with
oil-based materials, naturally advanced Ingeo™ biomaterials are
valued for their unique functional properties and used in products
from coffee capsules and appliances to tea bags and 3D printing
filament. NatureWorks is jointly owned by Thailand’s largest ASEAN
leading integrated petrochemical and refining company, GC, and
Cargill, which provides food, agriculture, financial and industrial
products and services to the world.
About Krungthai Bank
Krungthai Bank, a leading commercial bank in Thailand, is fully
committed to harnessing technological advancements and financial
innovations to enhance its customers’ lives by offering services on
digital platforms that are accessible to everyone. This
accessibility has contributed to a growing customer base for its
platforms—Krungthai NEXT, Paotang, and Tung-Ngern—which currently
boast 17.8 million, 40 million, and 2 million customers,
respectively. The bank’s financial services extend across five
ecosystems: government, payment, education, mass transit, and
healthcare. Additionally, it places a high priority on
environmental, social, and governance (ESG) considerations in its
business practices. This aligns with its commitment to addressing
the United Nations’ Sustainable Development Goals and promoting
sustainable banking practices.
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Americas & Europe LaunchSquad for NatureWorks Email:
natureworks@launchsquad.com
Asia Pacific & Japan Pauline Ning Email:
pauline_ning@natureworkspla.com Tel: +86-138 1650 1881