NatureWorks’ Ingeo PLA Manufacturing Expansion Attracts Record Financing from Krungthai Bank PCL of Thailand

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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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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