World Bank Group’s member, International Finance Corporation (IFC) plans to invest around $45m in SRF Industries (Thailand) and another $40m in the company’s South African business.
The proposed investment in the Thailand's subsidiary aims to support company's plan to invest around $71m in a greenfield facility in Thailand, which will manufacture bi-axially-oriented polyethylene terephthalate (BOPET).
According to SRF's Project disclosure, the plant will be set up in the company's subsidiary SRF Industries (Thailand) (SRFIT). It will produce about 28,500t of BOPET annually, business-standard.com reported.
The project, which will be a part of IFC's effort to establish a long-term partnership with SRF, aims at supporting the expansion of the food packaging industry, which, in turn would reduce food spoilage and enhance availability of processed foods.
SRFIT purchased 22 acres land at the Hemaraj Eastern Seaboard Industrial Estate (HESIE) in Thailand and has received approval from Industrial Estate Authority of Thailand (IEAT), covering various environmental and land clearances. The facilities available at the estate include utilities and road infrastructure.
During construction, local procurement of about $10m is expected, and business for local supply chain is set to rise in the operational phase.
