FE Green PET, a wholly owned unit of Taiwan-based Far Eastern New Century Group (FENC), has obtained RM150m ($35.46m) in a green and sustainability-linked funding package from HSBC Malaysia.
The funding will be used to expand the company’s Melaka facility for producing recycled polyethylene terephthalate (rPET) resin, covering both construction and post-commercial operation phases.
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The financing will also be used in part to acquire industrial land and rPET production equipment for the initial construction of the plant.
Once operational, the facility will produce 50,000 metric tonnes of rPET per year from post-consumer recycled (PCR) content.
Produced from used plastic materials including bottles and containers, rPET is suitable for use in food-grade applications.
FE Green PET intends to supply rPET to several of its international customers, including brands in the beverage sector.
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By GlobalDataThe project is described by the company as contributing to waste reduction by converting discarded plastics into value-added products.
HSBC Malaysia Global Trade Solutions head Shreyas Krishna stated: “Through the cross-border collaboration with the parent company; Far Eastern New Century in Taiwan, FE Green PET in Malaysia and HSBC’s offices in both Malaysia and Taiwan, the deal highlights our ability to leverage our international network to connect clients with key opportunities offered by sustainable finance.”
The financing’s sustainability-linked structure ties pricing to achievement of environmental, social and governance-related key performance indicators that correspond with FENC’s sustainability strategy.
The key performance indicators include targets on renewable electricity consumption and recycled water consumption.
FENC, which has specialised in recycling bottle‑grade polyester since 1988, operates production sites in Taiwan, Japan, Vietnam and the US.
The group plans to replicate its PCR model in Malaysia as part of its regional consolidation efforts.
FE Green PET’s process involves the sorting, cleaning, decontamination and pelletising of locally sourced PET bottles to produce rPET resin.
The investment aligns with Melaka’s Industrial Booster initiative and the state’s stated aim of developing a greener economic hub with infrastructure to support global trade.
FENC president Donald Fan stated: “The commissioning of our new Melaka plant will accelerate the implementation of the ‘bottle-to-bottle’ circular system, supporting Malaysia’s green transition and resource recycling, while further connecting regional and global supply chains in pursuit of low-carbon development.”
