Circulate Capital Penetrates Thai Markets to Strengthen Recycling Business in Southeast Asia

Otential of Thailand’s supply chain in bringing flexible plastics packaging into circulation system after Union J. Plus (Thailand) has acquired LDPE plastics recycling plant with readiness to expand production capacity at full capacity.

 

 

 

 

Circulate Capital, a leading circular economy investment management company investing in high-growth markets announces its new strategic investment in Union J. Plus (Thailand), a company which has been in the business of recycling polyolefin plastics (PP, HDPE, LDPE) for over 20 years. This new investment money will help Union J. Plus increase its operational potentials as well as expanding its business by growing from within the organization and business merger. Most recently, Union J. Plus has acquired a low-density polyethylene (LDPE) recycling plant with a production capacity of 18,000 tons per year in an Industrial Estate Zone of Samut Prakan Province.

 

 

Circulate Capital’s investment money will enable Union J. Plus to significantly expand its recycled plastics pellet production capacity including strengthening the supply chain when fully operated. The total recycling capacity is expected to exceed 30,000 tons per year which includes the recycling of over 20,000 tons of premium and food grade PP, HDPE, LDPE plastics per year.

 

 

Union J. Plus is one of the few recycling businesses with a female owner and management team under the leadership of Ms. Kulnath Siriphati and Ms. Chutikarn Chaisiripaiboon. With more than 20 years of experience in the recycling industry, in-depth knowledge and understanding of the markets and technical expertise, this development will enable the company to become the country’s leading PP, HDPE, LDPE plastics recycling company. Nevertheless, the increased potential of collecting and recycling large amounts of plastics waste in the country is also considered an important step in driving the circular economy in the country.

 

 

This Circulate Capital’s strategic investment is the first of its kind in Thailand which is an expansion of the investment portfolio in the recycling business group and that such portfolio is now the largest among other recycled plastics portfolios in South and Southeast Asia. This reflects the company’s continuous commitment to building the local supply chain for high quality recycled plastics.

 

 

Thailand produces approximately two million tons of plastics waste per year and that only one-fourth of it is recycled. Deriving from the research, it is estimated that Thailand will lose up to 4 billion US Dollars per year when plastics are discarded rather than recycled and turned into valuable materials. It can be seen that the adoption of the circular economy for use can help reduce the production costs and increase incomes for the Thai private sector by up to 1.6 billion US Dollars.

 

 

Ms. Siriphati, Co-founder of Union J. Plus said, “As an entrepreneur in the plastics waste recycling industry in Thailand, we set our aim to be a leader in developing and promoting the circularity of plastics including sustainable growth in the future. Circulate Capital’s support is definitely utmost important to this commitment that will indeed help enhance the company’s capabilities and upgrade Thailand’s recycling infrastructure.”