SET-listed PTT Global Chemical Plc (PTTGC), Thailand's largest petrochemical maker, has announced plans to spend 1 billion baht on a commercial recycling plant for single-use plastic products with a capacity of 30,000-40,000 tonnes per year.
The facility is planned for Rayong Industrial Estate in Map Ta Phut.
President and chief executive Supattanapong Punmeechaow said it will be the largest capacity for single-use plastic in Thailand.
"This move is part of PTTGC's long-term strategy that aims to terminate the production of single-use plastic resin at its petrochemical complex within the next five years," he said. "PTTGC produces 150,000 tonnes of single-use plastic resin per year, mostly for bottles, straws and bags."
Mr Supattanapong said the project is part of PTTGC's circular economy plan, which aims to cut plastic waste in Thailand.
The project is conducting an investment study for a plastic recycling plant that meets international standards.
Details such as appropriate technology, potential business partners, waste management, collection and the business model will be disclosed in early 2019.
"Thailand has lots of single-use plastic waste in both landfills and offshore areas without any management, so we want to deal with this problem," Mr Supattanapong said.
The resin to be reproduced will feed into high-graded plastic moulding such as building materials, home decor, textiles, garments and auto parts.
PTTGC aims to reduce single-use plastic to zero in the next five years and focus on bioplastics to reproduce packaging products.
"PTTGC will move into eco-friendlier businesses such as bioplastics production at the biochemical complex in Nakhon Sawan province," Mr Supattanapong said.
The complex is a joint venture of PTTGC subsidiary Global Green Chemical Plc and Kaset Thai International Sugar Corporation Plc. Each company owns half of the country's first bioeconomic industrial complex.