By Plasteurope.com correspondent

US materials specialist NatureWorks (Minnetonka, Minnesota; www.natureworksllc.com) has secured a USD 350 mn (EUR 322 mn) loan from Thailand-based Krungthai Bank (Bangkok; www.krungthai.com/en) to finance the construction and operation of its first manufacturing facility in the Southeast Asian country, producing the group’s Ingeo PLA biopolymer from sugarcane.

NatureWorks announced in mid-2024 that moves were afoot to back the plant’s construction, when the Thailand Board of Investment (Bangkok; www.boi.go.th) gave its approval.

Construction of the Thai plant is said to be “on track to support projected start-up activities”, with full production likely to commence next year.

Related: Global biopolymer production to grow by 17% per year to 2028

The new facility will be capable of producing 75,000 t/y of Ingeo biopolymer, according to the company. These will be used in processes and products such as 3D printing, nonwovens for hygiene, compostable coffee capsules, tea bags, flexible packaging, and compostable food serviceware.

NatureWorks said Ingeo biopolymers produced at the site will be made from sugarcane sourced from farms within a 50 km radius of the site in Nakhon Sawan province.

“[We] 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,” it said.

The company’s original manufacturing facility, located in Blair, Nebraska, USA, is capable of producing 150,000 t/y of its Ingeo biopolymer, which is created by turning greenhouse gases into polylactic acid (PLA) performance materials.

Suratun Kongton, chief wholesale banking officer of Krungthai Bank, said it agreed the loan to NatureWorks “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,” he added.