Hatthip has joined forces with recycling partners in Southern Thailand to upgrade a pilot project into a sustainable recycled plastic pellet supply system that is prepared to handle market volatility and fluctuations.
On 18 Sep, reporters noted that recently Hatthip Public Company Limited (HTC), the beverage producer and distributor for the Coca-Cola network across 14 southern provinces, held a signing ceremony for a memorandum of understanding with Oxitech Company Limited and Royce Universal Company Limited. This agreement upgrades their recycling partnership in the South, a pilot project launched in 2025, into a fully operational raw material supply process this year. Previously, the project used a reverse logistics system to drive bottle-to-bottle PET recycling. Oxitech purchased PET plastic bottles from collectors and buyers in the South, then sorted, cleaned, and shredded them into flakes according to Hatthip’s orders and specifications. Hatthip transported these used PET flakes to Royce Universal’s factory in Nakhon Pathom Province for processing into rPET pellets. The pellets were then brought back by Hatthip to produce new beverage bottles at the Phunphin factory in Surat Thani Province. By the end of the project in Q2 2026, about 100 tons of used PET bottles from the South had been recycled into rPET pellets, meeting the initial target.
Under the new cooperation framework this year, the process has been modified from a limited-time pilot with fixed targets to a full raw material supply system. When Hatthip needs rPET pellets, it can place orders directly with Royce Universal, which coordinates with Oxitech to procure raw materials—either PET bottles processed into flakes or compressed bales. Oxitech handles transportation to Royce Universal. After Royce Universal processes the flakes or PET bottles into rPET pellets, Hatthip collects and transports them back to its factory in Phunphin, Surat Thani Province, for new packaging production.Surat Thani Province.As before, this change reduces business steps and enables the production of larger rPET pellet volumes per order compared to the pilot phase. During discussions to enhance the partnership, Hatthip has already placed orders for 1,000 tons of rPET pellets from Royce Universal.
However, as a producer and distributor of Coca-Cola beverages, Hatthip has aligned its operational goals with The Coca-Cola Company's packaging targets, aiming to use 35-40% recycled materials in its main packaging types (plastic, glass, and aluminum) and to support the collection of 70-75% of bottles and cans placed on the market by 2035.
Lieutenant General Patchara Rattakul, CEO of Hatthip, explained that the motivation to enhance the partnership arose during Q2 when the PET market faced volatility from Middle East developments, causing virgin PET pellet prices to rise sharply and raising concerns about supply continuity. This situation highlighted the importance of having diverse and reliable raw material sources. rPET became a crucial alternative, offering competitive prices compared to virgin PET and aligning with Hatthip’s sustainability goals. Consequently, discussions with partners began to increase rPET usage and improve processes to support larger procurement volumes. Beyond process adjustments, Hatthip will collaborate with Oxitech to strengthen the network of recycling material collectors in the South through its sustainability projects, recognizing these communities’ key role in returning packaging materials to recycling after consumption.
Mr. Seksan Udomsri, CEO of Oxitech, said Oxitech is very pleased that this collaboration has been elevated to a full raw material supply process for Hatthip. This means more PET bottles will be collected for recycling, reducing the risk of environmental waste. Oxitech has long worked with recycling material collectors in the South, and Hatthip’s support will strengthen this network. This is not only a business opportunity but also a chance to build a robust packaging collection network in Southern Thailand. This network is a vital foundation for implementing Extended Producer Responsibility (EPR) principles, which many countries have adopted and which the Thai government is currently considering legislating.
Mr. Thatchawat Techamongkoljit, CEO of Royce Universal, expressed pleasure in continuing the partnership with Hatthip and Oxitech in this project. As a producer of rPET pellets with extensive experience in recycling various materials, he is glad to see the collaboration evolve from a pilot targeting hundreds of tons into a fully operational business process. This clearly demonstrates that bottle-to-bottle recycling is achievable when all stakeholders work as a networked alliance with shared goals, rather than viewing each other merely as customers or suppliers, and are willing to adapt current operations toward a better future—not only for their businesses but also for society and the environment.