PETALING JAYA: FE Green PET (M) Sdn Bhd, a wholly-owned subsidiary of Taiwan’s Far Eastern New Century Group (FENC), has secured RM150mil in green and sustainability-linked financing from HSBC Malaysia.
In a statement, HSBC Malaysia said this marks FENC’s global debut in green and sustainability-linked financing and will fund the expansion of FE Green PET’s recycled polyethylene terephthalate (rPET) resin production plant in Melaka.
“The initiative will not only support the construction phase but also the post-commercial operation of the project.”
FE Green PET specialises in the manufacturing of rPET and other plastic products for packaging.
HSBC Malaysia said rPET can be produced from used plastic materials such as used plastic bottles and containers.
“The loan proceeds will be used to finance the acquisition of industrial land and rPET production equipment for the plant’s initial construction phase. The plant will have the capacity to produce 50,000 tonnes rPET from post-consumer recycled content annually.
“This strategic investment not only showcases the increasing trend of Taiwanese companies investing in Malaysia, amidst supply chain shifts but also reinforces FE Green PET’s dedication to sustainable practices,” it added.
“The plant will contribute to waste reduction by transforming waste into value-added products for food-grade rPET, for some of FE Green PET’s globally recognised clients, including leading beverage brands.”
