PSP acquires 65% of Recycle Engineering to drive chemical recycling growth

PSP Specialties Public Company Limited (PSP), a leading manufacturer of lubricant products based in Thailand, has announced the acquisition of a 65% stake in Recycle Engineering (RE), a specialist in chemical recycling. The deal, valued in excess of THB 409.5 million (USD 11.2 million), positions PSP to expand its green business portfolio and contribute to the growth of a circular economy in Thailand.

The acquisition marks a strategic move towards sustainability as PSP accelerates its focus on green chemicals and circular economy principles. With this deal, PSP plans to integrate RE’s advanced recycling technology to transform waste into valuable products, a step that aligns with the global push for environmental responsibility and waste reduction.

According to Seksan Krongphanit, deputy chief executive officer of PSP, the company’s latest investment is a significant step forward in the development of Thailand’s chemical recycling sector. The acquisition also brings PSP closer to its sustainability goals, reinforcing its commitment to global environmental trends.

Through this partnership, RE will benefit from PSP’s vast customer network, recognised production standards, and access to increased funding sources, which will enhance both companies’ competitive edge. This collaboration aims to meet the rising demand for sustainable practices in the industrial sector while driving Thailand’s emergence as a regional recycling hub.

He highlighted that PSP’s customers are increasingly prioritising sustainability, and the acquisition allows the company to offer innovative recycling solutions. The deal also provides an opportunity for PSP to explore carbon credit utilisation, which could provide further competitive advantages for both PSP and RE in the long term.

In terms of management, PSP plans to make adjustments to RE’s operations, ensuring that the company aligns with PSP’s quality standards, production technology, and market expansion objectives. PSP will leverage its expertise to help expand RE’s customer base both domestically and internationally, a key aim of the investment.

Piyathida Mahatthanarak, director of Recycle Engineering, stated that PSP’s investment will enhance RE’s capabilities and enable the company to access vital resources for growth. These include an expanded customer network, improved management systems, and greater financial stability, all of which will drive RE’s expansion.