AFYREN, a French greentech company that offers manufacturers bio-based, low-carbon ingredients produced using unique fermentation technology based on a completely circular model, announced that it is working with Mitr Phol, a Thai company that is a leading producer of cane sugar and its derivatives, for the purpose of establishing a biorefinery in Thailand.
By choosing to build in the vicinity of Bangkok, Thailand, AFYREN will be able to support local, regional and international customers from as close a distance as possible in the strategic Asian market, which accounts for a quarter of global demand for carboxylic acids. The growth of this market is driven in particular by the dynamics of the food and animal nutrition sectors. AFYREN’s bio-based organic acids are used in many food products as preservatives or natural flavorings, as well as in many animal feed products, notably as an alternative to the preventive use of antibiotics.
In addition to benefiting from the growth of the Thai market, AFYREN will be able to take advantage of the country’s geographical location in the heart of Southeast Asia to export part of the new factory’s production to other Asian countries.
The agreement between AFYREN and Mitr Phol would lead to the creation of the AFYREN Group’s second bio-based organic acid production plant. It is in line with AFYREN’s “build and operate” development strategy, which aims to get as close as possible to raw material sourcing and its customers’ markets, with priority given to Asia and North America.
Moreover, the plant will have access to renewable and low-carbon electricity and steam, produced by the cogeneration of biomass, strengthening the biorefinery and circular economy model. Like AFYREN’s first plant, the Thai plant fermentation process will not consume water, and the mineral by-products of production will be used as a high-value natural fertilizer.
The Thai plant under consideration will be located in the immediate vicinity of Mitr Phol’s operations, close to Bangkok. In addition to providing a serviced plot of land, Mitr Phol will ensure the long-term supply of the sugarcane co-products that will be used to produce AFYREN’s organic acids.
This second plant aims to have a production capacity of approximately 28,000 tons per year, representing an annualized turnover of approximately 60 million euros in full capacity, in line with the objectives announced at the time of AFYREN’s IPO in October 2021. Production start-up is expected by 2025, with the timetable to be specified at the end of the engineering studies scheduled for the second semester of 2023.