Cambodia : A1-Plastic Launches $29 Million Food-Grade PET Recycling Plant in Pursat

A1-Plastic, a company specializing in plastic products in Cambodia, launched on January 19, 2026, the construction of a food-grade PET bottle recycling plant located in the Pursat Special Economic Zone.

This $29 million investment marks a major step forward in the fight against plastic pollution in the Kingdom.

Project details and advanced technologies

Located in Sna Ansa Commune, Krakor District, Pursat Province, the plant will cover 45,000 m² and begin operations in the fourth quarter of 2026 with two production lines: one for washing and producing food-grade PET flakes, and another for transforming them into reusable pellets.

Capable of recycling up to 44,000 tons of post-consumer PET per year, it will use 100% renewable energy (solar and hydropower), target LEED Gold certification, and incorporate anti-microplastic filtration systems and water recycling processes.The groundbreaking ceremony was attended by Keo Rattanak, Minister of Mines and Energy, Deborah Lee, CEO of A1-Plastic, and government officials.

“This project can strengthen livelihoods, improve working conditions, and stabilize the market for collected materials,” said the minister, emphasizing its alignment with national priorities for responsible resource management.

Context of a foreign investment boom

This launch comes amid a surge in record foreign investments in Cambodia: in 2025, the Council for the Development of Cambodia (CDC) approved 630 projects totaling $10 billion, dominated by China (54.25%), followed by Cambodia, Singapore, and Vietnam.Hong Vanak, economist at the Royal Academy of Cambodia, attributes this attractiveness to political stability, economic growth, and trade agreements.

In 2025, the country maintained its first-place ranking in Asia-Pacific and ninth worldwide in the Greenfield FDI Performance Index, which measures investment attraction efficiency relative to economic size.A1-Plastic, based in Hong Kong and operating in Cambodia since 2023, thus reinforces green industrial diversification.

Expected economic and environmental impacts

The plant will create 150 skilled jobs in its first phase, training the local workforce and stimulating Pursat’s rural economy through a supply chain involving informal collectors and recycling companies.Adam Fetherstonhaugh, Managing Director of A1-Plastic, aims to “significantly increase PET recycling rates, cleaning up communities for a healthier planet.”This project supports the national roadmap against plastic pollution, strengthening the PET sector where NGOs such as COMPOSTED are already optimizing supply chains in Phnom Penh and Battambang.It also reduces dependence on raw material imports and supports the food, textile, and beverage industries.