Indorama Ventures Advances Circular PET Packaging in Thailand

Indorama Ventures Public Company Limited is strengthening its packaging business through a strategic partnership with Suntory Holdings Limited, Suntory PepsiCo Beverage (Thailand) Co., Ltd., and Iwatani Corporation. Through its packaging business segment, Indovida, the company will support the commercial-scale introduction of circular PET packaging in Thailand, reinforcing its position in sustainable packaging and recycled materials.

The collaboration will bring Flake-to-Preform™ (FtoP) Direct Recycling Technology to Thailand through Indovida (Thailand) Limited, a joint venture between Indorama Ventures and Iwatani Corporation. Developed by Suntory and its partners, including Japanese recycling company Kyoei Industry Co., Ltd., the patented technology enables recycled PET bottles to be converted directly into PET preforms. This approach can streamline the recycling process, improve resource efficiency and reduce the environmental footprint associated with conventional PET production.

The project represents the first commercial deployment of FtoP technology in Southeast Asia. Once operational, the facility is expected to produce recycled PET preforms equivalent to approximately 400 million PET bottles each year. Commercial supply to Suntory PepsiCo Beverage Thailand is scheduled to begin in 2028, making the company the project's first commercial customer.

The partnership combines the capabilities of multiple players across the PET packaging value chain. Indorama Ventures contributes its expertise in PET, recycled PET and integrated packaging manufacturing, while Suntory provides FtoP technology and implementation expertise developed in Japan. Iwatani brings industrial capabilities and its established relationship with Suntory. Together, these strengths are expected to support a stable supply of high-quality recycled PET preforms.

For Indorama Ventures, the partnership expands its downstream packaging capabilities while supporting its broader IVL 2.0 growth strategy. The company aims to develop differentiated businesses through targeted partnerships, innovation and disciplined investment while helping customers achieve sustainability targets.

Suntory views the deployment as an important step toward increasing the adoption of sustainable PET bottles in Thailand and potentially across Southeast Asia. Meanwhile, Iwatani expects its involvement to contribute to the commercialization of FtoP technology and the development of a more circular packaging system.

The initiative also supports broader efforts to reduce dependence on fossil-based raw materials, increase recycled PET consumption and improve resource efficiency. By connecting recycling technology, recycled materials, packaging manufacturing and beverage demand, the partnership could accelerate the development of a more circular PET ecosystem in Southeast Asia.

Impact on Product and Chemical Commodity Prices

The partnership is likely to have a positive long-term impact on recycled PET (rPET) demand and production in Thailand, as the facility targets preforms equivalent to around 400 million PET bottles annually. Direct recycling technology could improve rPET availability and strengthen demand for recycled PET flakes and bottle-grade recycled materials. For virgin PET, the effect may be modest initially because commercial production begins in 2028, but greater recycled content could gradually limit growth in virgin PET demand. Increased competition for used PET bottles may also support collection and feedstock values. Overall, rPET prices could remain supported, while virgin PET prices may face mild structural pressure over time.