FENC: HSBC backs expansion of recycled PET production in Malaysia

This investment aligns well with Melaka's Industrial Booster initiative and will play a pivotal role in bolstering the state's vision of transforming into a green state economy hub, with well-developed infrastructure enabling fast global imports and exports.

“The collaboration between FE Green PET and HSBC signifies a stride towards a more sustainable future, promoting a circular economy and responsible manufacturing practices.Through the cross-border collaboration with the parent company; Far Eastern New Century in Taiwan, FE Green PET (M) Sdn Bhd 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”, said Shreyas Krishna, Head of Global Trade Solutions, HSBC Malaysia. 

"We have been deeply rooted in the Malaysian market for 30 years. Malaysia is not only a key hub for our ASEAN operations but also represents our long-term commitment to local development. 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", said Donald Fan, President, FENC. 

The Sustainability-Linked structure aligns KPIs with FENC’s sustainability strategy and initiatives. This framework enhances pricing as sustainability targets tied to FENC’s ESG efforts are achieved. Key focus areas encompass Renewable Electricity Consumption and Recycled Water Consumption.  

FENC is the world's largest green recycler of bottle grade polyester. Since 1988, the company has been committed to environmentally friendly recycling processes and product development, with production facilities in Taiwan, Japan, Vietnam and the United States. In line with efforts to consolidate its leadership in the ASEAN PCR industry, which focuses on reusing materials discarded by consumers, FENC is looking to replicate its successful model in Malaysia.

FE Green PET distinguishes itself through cutting-edge technology that transforms locally sourced PET bottles into high-quality rPET resin. By employing advanced techniques including sorting, cleaning, decontamination, and pelletising, high-value rPET resin is produced, ensuring both environmental sustainability and product quality. 

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The RM150 million in green and sustainability-linked financing from HSBC Malaysia will fund the expansion of FE Green PET’s rPET resin production plant in Melaka. (Photo Credit: Far Eastern New Century Corporation)
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https://www.feg.com.tw/