PSP Closes Deal with THB 409.5 Million Investment in Recycle Engineering (RE), Aims to Become Regional Chemical Recycling Hub and Disrupt the Industry

P.S.P. Specialties Public Company Limited (PSP), the leading lubricant solutions partner, has announced a strategic move toward sustainable growth by acquiring a 65% stake in Recycle Engineering (RE), a chemical recycling expert, for over THB 409.5 million. The investment underscores PSP’s commitment to driving the Circular Economy and advancing Green Chemicals, as the company integrates RE’s cutting-edge recycling technologies to transform industrial waste into valuable products. This partnership marks a significant step in creating a fully integrated green business model, combining PSP’s market reach with RE’s technical expertise to strengthen Thailand’s industrial sector and establish the country as a regional hub for chemical recycling.

Mr. Sakesan Krongphanich, Deputy CEO of P.S.P. Specialties Public Company Limited (PSP), revealed that the company is actively expanding its green business portfolio under the concepts of Circular Economy and Green Chemical, with a focus on sustainability. Most recently, PSP completed a THB 409.5 million investment to acquire a 65% stake in Recycle Engineering Co., Ltd. (RE), a specialist in chemical recycling. The transaction followed approval from PSP’s Board of Directors on November 21, 2022, and was finalized with the signing of a share purchase agreement on February 12, 2024. This investment is part of PSP’s strategic plan to diversify into sustainability-focused industries—a global priority across sectors. It also represents a major step toward enhancing Thailand’s chemical recycling industry to meet international standards. Additionally, the acquisition creates an opportunity to build on recycling knowledge and technologies that convert waste into value-added products, supporting more efficient resource use and long-term industrial growth.

“This acquisition of RE significantly strengthens PSP’s core business, particularly in waste management and environmentally friendly chemical solutions—key pillars of the Circular Economy and part of the global Mega Trend reshaping industries worldwide,” said Mr. Sakesan Krongphanich. “As a comprehensive lubricant product manufacturer, PSP serves a large customer base that prioritizes sustainability and is actively seeking solutions to reduce waste from production processes. This deal enables PSP to offer an integrated response to those needs by providing recycling services to industries aiming to minimize waste, while also exploring carbon credit strategies. These initiatives will enhance the competitive edge of both PSP and RE in the future.”

Regarding post-acquisition management, PSP plans to streamline RE’s operations to enhance agility and ensure alignment with PSP’s strategic direction, particularly in areas of quality standards, production technology, and market expansion. Mr. Seksan Krongpanich added that PSP will leverage its expertise to help grow RE’s customer base both domestically and internationally—one of the key objectives behind this investment. By integrating the technological capabilities and quality standards of both companies, RE will be better positioned to develop innovative recycling solutions that effectively meet the demands of future markets.

Ms. Piyathida Mahattanarak, Director of Recycle Engineering (RE), stated that PSP’s shareholding not only supports RE in expanding its business base but also presents a vital opportunity to enhance the company’s capabilities. Having PSP as a major shareholder enables RE to access key resources essential for growth, including a vast industrial customer network, internationally recognized production standards, and more efficient management systems. Furthermore, the partnership facilitates easier access to funding, reduces financial costs, and strengthens RE’s financial stability. With PSP’s solid position as a publicly listed company, these factors will significantly enhance RE’s competitiveness, allowing the company to grow its business more rapidly and effectively.

PSP and RE also place strong emphasis on human capital development as a driver for a sustainable future. Both companies plan to encourage employees to deepen their knowledge in areas such as carbon credits and advanced recycling technologies. This initiative aims to equip staff with the skills needed to develop market-responsive solutions effectively. The collaboration between PSP and RE is not only a path toward shared growth but also a significant step in positioning Thailand as a regional hub for the recycling industry. This aligns with global trends toward a circular economy and the advancement of environmentally friendly industrial practices.