PSP Expands RE Investment to Strengthen High-Growth Chemical Recycling Business, Driving Circular Economy and Green Chemistry Toward Net Zero Goals

P.S.P. Specialties Public Company Limited (PSP) is advancing its strategic expansion following the completion of its 100% acquisition of Recycle Engineering Co., Ltd. (RE) in mid-2025. The investment aims to strengthen PSP’s capabilities and expand into the high-growth chemical recycling business, elevating industrial waste management toward fully integrated solutions covering used chemical recycling, laboratory waste management, industrial packaging refurbishment, and chemical contract manufacturing.

The initiative is designed to create added value through circular economy and green chemistry principles, driven by three strategic pillars: integrating international expertise, establishing a regional growth foundation, and transforming circular economy concepts into practical industrial solutions. PSP aims to advance toward its Net Zero targets while positioning itself as a leading chemical recycling hub in the ASEAN region through an investment budget of more than THB 630 million.

Mr. Sakesan Krongpanich, Deputy Chief Executive Officer of P.S.P. Specialties Public Company Limited (PSP), a leading integrated lubricant solutions provider, stated that PSP’s acquisition of a 100% stake in Recycle Engineering Co., Ltd. (RE) in mid-2025 was not merely an expansion of the Company’s investment portfolio, but a long-term strategic foundation built upon the integration of expertise between PSP and RE.

RE has more than 30 years of experience in chemical recycling and industrial waste management and has continuously earned the trust of leading industrial operators. The company has now become an important part of the PSP Group.

RE’s growth strategy is driven by three key pillars.

The first is the integration of international expertise by combining RE’s European-standard chemical recycling capabilities with PSP’s strengths in industrial chemicals to enhance waste management solutions and develop Re-Refined Base Oil (RRBO).

The second is establishing a regional growth foundation by positioning RE as a chemical recycling hub for ASEAN, supporting global megatrends including the circular economy, green chemistry, and Net Zero initiatives, while also addressing the growth of the digital economy and ESG supply chains. The strategy also includes expanding the customer base across the automotive, petrochemical, and electronics industries.

The third is transforming the circular economy into practical implementation by elevating services toward comprehensive Total Waste Management solutions, while creating new value streams such as carbon credits under the Bio-Circular-Green (BCG) Economy Model and developing Green Platforms for long-term resource management efficiency.

RE currently provides six core services that support the practical implementation of the circular economy.

1. Used Chemical Recycling Services

RE provides recycling and quality enhancement services for used chemicals, solvents, and oils through certified recycling processes. Services cover consultation for industrial waste transportation permits, systematic waste collection, and disposal management in compliance with Department of Industrial Works standards, helping industrial operators sustainably reduce raw material costs.

2. Chemical and Used Packaging Disposal Services

For chemicals that do not meet recycling standards, RE provides sorting, pre-treatment, and proper disposal services, together with safe and legally compliant transportation using licensed hazardous material transport vehicles and certified drivers.

3. Laboratory Waste Management Services (Lab Waste)

RE collects used laboratory chemicals nationwide from government agencies, universities, and private organisations for compliant disposal. Services include consultation, suitable packaging solutions, safe transportation, and disposal in accordance with industrial regulations, helping systematically reduce environmental pollution.

4. Industrial Packaging Refurbishment Services

RE provides cleaning and refurbishment services for 200-litre steel drums and Intermediate Bulk Containers (IBCs), restoring them to reusable condition under international standards. The process includes leak testing and advanced refurbishment technologies, earning UN Certified standards.

Operational data indicates that the service helps reduce packaging procurement costs by approximately 40–50% and lowers greenhouse gas emissions by more than 80%, or to less than 5 kilograms of CO2 equivalent per container compared to new packaging usage. This significantly reduces Scope 3 carbon footprint emissions in a sustainable manner.

1. Used Chemical and Packaging Procurement and Recycled Chemical Distribution

RE purchases used solvents and industrial packaging that meet recycling standards, including steel drums and IBC containers, for entry into recycling processes. The company also distributes recycled chemicals refined to quality levels comparable to virgin chemicals, as well as new chemicals and second-hand packaging based on customer requirements.

2. Chemical OEM Manufacturing Services

With expertise in ISO 9001-certified chemical manufacturing systems, RE provides OEM production services for a wide range of products, including organic and inorganic industrial chemicals, construction chemicals, solvents, and petrochemical oils. Processes include distillation, filtration, extraction, and blending, with packaging sizes ranging from 1 litre to 1,000 litres to meet customer requirements across industries.

Mr. Sakesan added that beyond its current operations, RE is accelerating the development of Re-Refined Base Oil (RRBO) to further extend circular economy principles into higher-value industrial supply chains.

The project involves refining and restoring used industrial lubricants into high-quality base oils comparable to virgin lubricant base oils, addressing growing market demand for green supply chains. PSP is also collaborating with strategic business partners to establish a fully integrated circular economy ecosystem capable of supporting future carbon tax regulations while reinforcing the Company’s leadership in the circular economy and delivering stable long-term returns.

Amid rising production and logistics cost challenges, PSP aims to leverage the combined expertise and experience of both PSP and RE to support Thai industries in transforming “waste costs” into “business profitability,” while strengthening shareholder confidence in the Group’s environmental and risk management capabilities.