PTT and ALPLA under the entity Envicco received approval from Thailand’s FDA (Food and Drug Administration) to sell recycled polyethylene terephthalate (R-PET) for local use, said the company.
Envicco is the first recycler in Thailand to gain the seal after the government announced in June 2022 that R-PET pellets will be allowed for local food packaging. Thailand’s decision is a key development across Asia's R-PET industry which could potentially impact trade flows of the materials.
The approval opens substantial demand potential for R-PET materials as currently only virgin PET plastics are allowed for use in applications such as bottled beverages in domestic markets. Other major recyclers in Thailand which include Indorama and EcoBlue have also applied for the permits since last year and are waiting for approval.
Envicco produces up to 30,000 tonnes/year of bottle-grade R-PET pellets and exports to customers both within Asia and to long-haul clients. The opening of the local market bolsters demand for the food-grade pellets and could potentially divert overseas-bound cargoes to local consumers.
Most recyclers expect production rates at respective plants to remain sufficient to meet both local and overseas demand. The move is in line with Thailand’s steady push towards increasing its recycling rates for more sustainable plastic packaging solutions in the future.
Thailand has announced earlier this year that by 2025, it will completely ban imports of mixed plastic waste bales.
The ban could severely tighten available feedstock when R-PET pellets demand is robust due to higher sustainability targets from major brands in the coming years.
We remind, ALPLA Group, together with its joint venture partners Ecohelp and UPT, has opened its first PET recycling plant in Romania after a construction time of nine months and investment of around 7.5 million euros. The state-of-the-art plant is now producing around 18,000 tonnes of recycled material per year from household waste. The joint undertaking PET Recycling Team Targu Mures supplies the southeast European market with food-grade rPET and thus promotes the circular economy in the region.
mrchub.com