Indorama Ventures brings FtoP recycling to Thailand with Suntory PepsiCo as first customer

Indovida, Indorama Ventures’ packaging business segment, has partnered with Suntory Holdings, Iwatani Corporation, and Suntory PepsiCo Beverage (Thailand), a beverage joint venture formed between Suntory Beverage & Food and PepsiCo, to introduce commercial-scale circular PET packaging in Thailand. 

Indorama Ventures and Iwatani Corporation’s joint venture, named Indovida (Thailand), will bring Flake-to-Preform (FtoP) Direct Recycling Technology to the Southeast Asian nation. It aims to enhance Indorama Ventures’ downstream packaging platform. 

Indorama Ventures tells Packaging Insights: “FtoP brings a new recycling technology to Thailand, allowing recycled PET bottles to be turned directly into preforms. For Thailand, this is significant because it is the first commercial use of the technology in Southeast Asia.”

“It shows that Thailand can be an early adopter of new circular packaging technologies when companies across the value chain work together. We also see this project as a strong foundation for exploring further opportunities in Thailand and the wider region.”

Aloke Lohia, Group CEO at Indorama Ventures, highlights that the company is expanding its ability to deliver differentiated circular packaging solutions while reinforcing our downstream packaging platform.

Aloke Lohia, Group CEO at Indorama Ventures.“This partnership reflects our IVL 2.0 strategy of building businesses through focused partnerships, innovation, and disciplined investment, creating lasting value for our customers, shareholders, and other stakeholders,” he comments.

Supporting circular beverage packaging

Indorama Ventures tells us that one of the biggest challenges for new technologies is finding the first customer willing to adopt it.

“In our case, close collaboration between Suntory, Suntory PepsiCo Beverage Thailand, Indorama Ventures, and Iwatani has been important in bringing the technology from Japan into a commercial application in Thailand. Each partner brings a different capability, and that combination has helped make the project possible.”

The patented FtoP technology is jointly developed by Suntory and three partner companies, including Japanese recycling firm Kyoei Industry. According to the companies, the solution allows PET preforms to be manufactured directly from recycled PET bottles, strengthening recycling efficiency while lowering environmental impact. 

Jun Asaki, chief sustainability officer at Suntory Holdings, says: “We see the introduction of this FtoP technology in Thailand as a significant step forward in expanding the adoption of sustainable PET bottles, a key target of the Suntory Group.”

“Through collaboration with a wider range of partners, we aim to promote PET bottles as a sustainable packaging solution in Thailand and across Southeast Asia, contributing to the realization of a circular society and environmental impact reduction.”

Earlier this year, Thailand announced measures to accelerate plastic recycling as the US-Iran war interrupted the flow of petrochemical feedstocks.

The joint venture is expected to produce recycled PET preforms equivalent to approximately 400 million PET bottles annually. 

The preforms will be supplied to Suntory PepsiCo Beverage Thailand in 2028, making it the first commercial customer for Indorama Ventures to use the recycled PET preforms produced through the project.

Kenji Motoori, director of Iwatani Corporation, comments, “Through our joint venture with Indorama Ventures, we will support this project by ensuring a stable supply of high-quality recycled PET preforms. We will continue to work closely with our partners to help realize a circular economy.”