Indorama funds to go toward PET recycling

Bangkok-based plastics and packaging materials producer Indorama Ventures Public Co. Ltd. has secured a new seven-year loan totaling $200 million from the International Finance Corporation (IFC). Proceeds from the loan will help fund the continued growth of the company’s strategic sustainability programs in India, Thailand and Indonesia, "promoting a circular economy as the world’s leading polyethylene terephthalate (PET) recycler.”

The loan from the Washington-based IFC, which is a member of the World Bank Group focused on private sector development in emerging markets, provides what Indorama says is a long tenor and flexibility to convert into a sustainability-linked facility based on mutually agreed sustainability targets in the future.

In Indorama’s case, the funds will be used to finance its initiatives that bolster Indorama's "strategic" footprint in PET recycling.

Those initiatives include: enhancing efficiency at the company’s existing recycling facilities in Nakhon Pathom and Rayong in Thailand, launching an automated plant in Karawang in Indonesia and establishing new recycling plants in India.

“Our continued collaboration with IFC is an important part of our ongoing investment in sustainability, allowing us to expand our recycling capabilities and make a meaningful impact on the environment and communities in key emerging markets,” says Yash Lohia, chair of the Environmental, Social and Governance (ESG) Council at Indorama.

“As a global leader in the chemical industry, Indorama Ventures is dedicated to setting new benchmarks for sustainable practices and promoting a circular economy worldwide."

Additionally, the financing will reimburse costs incurred in 2023 and 2024 for sustainability projects already underway.

“We are delighted to partner once again with Indorama Ventures," says Jane Yuan Xu, country manager for Thailand and Myanmar at the IFC. "This loan exemplifies IFC’s commitment to fostering a circular economy and enhancing waste management in emerging markets. Together, we aim to leverage recycling as a powerful tool in managing plastic waste and advancing broader sustainability and climate change goals.”

Indorama is one of the world's leading petrochemicals producers, with a global manufacturing footprint in Europe, Africa, the Americas and the Asia-Pacific region. The firm has about 26,000 employees worldwide and reported revenue of $15.6 billion in 2023.