Most people who pick up a compostable cup or peel a thin bio-based film from a food container rarely stop to consider where it comes from. They might notice a label: compostable, and sometimes biobased emphasizing how sustainable such materials are.
That distinction, however, hides a much bigger story. Understanding it, it reveals just how short the journey can be from a sugarcane field to the cup in your hand.
A growing share of what the industry calls bioplastics begins with something surprisingly familiar: sugarcane or corn. The sugars are fermented in much the same way one would produce ethanol or even beer. This process yields lactic acid, which is then transformed through a series of industrial steps into polylactic acid, or PLA.
The result is a versatile polymer that can be molded into packaging, spun into textile fibers, or used as filament in 3D printers. It is bio-based, compostable under the right conditions, and increasingly positioned by consumer brands as a key solution in their efforts to reduce conventional plastic use.
The chemistry part is interesting but so is PLA production geography.
PLA itself is not new. NatureWorks, backed by Cargill and PTT Global Chemical, has been producing it in Blair, Nebraska since 2002. TotalEnergies Corbion operates a major facility in Thailand, and India’s Balrampur Chini Mills has recently entered the market at scale. Production is spreading, yet the logic of its origins remains simple.
PLA starts with sugar, and sugar, at scale and at low cost, is inherently regional.
Which raises a straightforward question: if new large-scale PLA capacity were to be built, wouldn’t Latin America, and particularly Brazil, be the most logical place to develop it?
A closer look at the region’s structural advantages and the way sugar producers already operate suggests that this is not a speculative idea, but a rational next step.
Latin America is home to some of the most efficient agricultural producers in the world. Brazil is the world's largest sugarcane grower. Argentina and Mexico are among the most competitive corn producers globally. The infrastructure supporting these industries, including farms, mills, logistics networks, and processing facilities, represents decades of investment and deep operational expertise.
Yet economic returns remain constrained by a factor producers cannot control: global commodity prices. Sugar and corn are priced on international markets and margins compressed regardless of how efficiently an operation runs. The best producers cannot escape a weak pricing cycle.
This constraint is precisely what makes PLA an increasingly relevant topic in boardrooms.
The industrial logic becomes clearer when looking at existing operations in sugar production.
Integrated sugar and ethanol complexes already operate fermentation at industrial scale. They manage continuous processing, generate their own power through cogeneration, treat water, and operate year-round. These capabilities closely match the requirements of the early stages of PLA production.
The step from fermenting sugars into ethanol to fermenting them into lactic acid, the precursor to PLA, is very familiar. Equipment set-up is similar, and much of the process knowledge is directly transferable.
Facilities that already run fermentation, cogeneration, and continuous processes do not need to build these capabilities from scratch; they can redirect them toward higher-value outputs.
Once lactic acid is produced and purified, it is converted into lactide and then polymerized to produce PLA resin. From there, depending on the grade and formulation, it can be used across a wide range of applications. The most visible is packaging, including rigid containers, flexible films, cups, and food service items that replace fossil-based plastics and can be industrially composted at end of life. PLA is also used in textile fibers as a bio-based alternative to polyester, as well as in 3D printing, electronics, housing, and medical applications such as sutures and implants, where biodegradability provides a functional advantage.
Pricing varies significantly across these applications, which is central to PLA’s commercial appeal. Packaging resin sits at the lower end of the value range with larger volumes, while medical-grade polymers occupy a much higher segment in niche markets.
The commercial case for PLA has existed for years with several commercial plants operating worldwide. What has changed is the environment in which it operates.
Restrictions on single-use fossil-based plastics are expanding, particularly in the European Union. At the same time, sustainability commitments from multinational consumer goods companies are increasingly being translated into procurement requirements. Materials once considered premium are becoming baseline expectations.
PLA, as an established material with certified biodegradability and existing supply chains, is well positioned to capture a meaningful share of this demand.
Whether Latin America captures a significant portion of the next wave of PLA capacity remains an open question. Investment may continue to flow to Asia, where capacity is already growing and policy support is strong.
The industrial logic for Latin America is clear. The starting position is structurally advantaged. The outcome will depend on decisions now being made in a relatively small number of boardrooms about how far producers are willing to move downstream over the next decade.
Sulzer’s SULAC™ and SULROP™ technologies are deployed in most of commercial PLA plants worldwide. Sulzer provides end-to-end process technology and project support for producers developing PLA capacity. More at sulzer.com