Global sustainable chemical company Indorama Ventures has secured a $200-million loan from the International Finance Corporation to fund sustainability initiatives in India, Indonesia and Thailand. The funding will help Indorama reach its goal of promoting a circular economy as a leader in global polyethylene terephthalate ( PET ) recycling, the group said.
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IFC, which is a member of the World Bank Group focused on private-sector development in emerging markets, approved the seven-year loan to allow Indorama to boost a number of sustainability programs aimed at PET recycling. Bangkok-based Indorama will use the funds to enhance efficiency at its recycling facilities in Nakhon Pathom and Rayong in Thailand , and to launch new recycling plants in Karawang, Indonesia, and India. The financing also will allow Indorama to reimburse costs from sustainability projects that took place in 2023 and earlier this year.
“Our continued collaboration with International Finance Corporation 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,” said Yash Lohia, chairman of the ESG Council and Indorama Ventures.
This loan comes nearly four years after IFC awarded Indorama its first-ever blue loan—funds certified and tracked to support a Blue Economy of sustainable ocean resource use—to finance the recycling of 50 billion PET bottles globally by 2025. The $300 million financing—which included $150 million from IFC and $150 from the Asian Development Bank and Deutsche Investitions-und Entwicklungsgesellschaft—allowed Indorama to expand its recycling capacity in Thailand, Indonesia, the Philippines, India and Brazil.
“This loan exemplifies International Finance Corporation’s commitment to fostering a circular economy and enhancing waste management in emerging markets,” said Jane Yuan Xu, country manager for Thailand and Myanmar, IFC. “Together, we aim to leverage recycling as a powerful tool in managing plastic waste and advancing broader sustainability and climate change goals.”
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According to the National Renewable Energy Laboratory, more than 82 million metric tons of PET is produced globally each year to make single-use packaging, beverage bottles, carpets and clothing, among other items. And the United Nations Environmental Project estimates that PET packaging accounts for 12 percent of global solid waste, with only about 9 percent of that plastic waste getting recycled, according to the U.N. Development Program.
Last year, Indorama partnered with French biotechnology pioneer Carbios to begin construction on the world’s first PET biorecycling plant in Langlaville, France. The site—which is slated to be operational in 2025—will be able to process 50,000 tons of post-consumer PET waste annually using an enzymatic recycling approach.
“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,” Lohia said.
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