CJ CheilJedang and HDC Hyundai EP Establish Joint Venture to Diversify White Bio Business

CJ CheilJedang's Fermentation and Refining Technology Combined with Hyundai EP's Compounding Capabilities
CJ CheilJedang Expands Scope to Eco-Friendly Bioplastic Materials Overall

Choi Eun-seok, CEO of CJ CheilJedang (right), and Jung Jung-gyu, CEO of HDC Hyundai EP (left), are posing for a commemorative photo after signing a Memorandum of Understanding (MOU) to establish a bio compounding joint venture.

[Asia Economy Reporter Lim Hye-seon] CJ CheilJedang is actively diversifying its white bio business through collaboration with HDC Hyundai EP, the leading polymer compounding company in Korea.

CJ CheilJedang announced on the 24th that its CEO Choi Eun-seok and HDC Hyundai EP CEO Jung Jung-gyu, along with executives from both companies, signed a Memorandum of Understanding (MOU) for the establishment of a bio compounding joint venture at Hyundai I'Park Tower in Gangnam-gu, Seoul. The two companies plan to finalize the main contract and establish the joint venture (JV) within this year.

The joint venture will first focus on developing compounding solutions and mass production of bioplastics using biodegradable plastic materials such as PHA and cellulose. They plan to concentrate on applying these materials in everyday fields by replacing existing petrochemical raw materials with bio-based raw materials or mixing biodegradable materials to produce food packaging and automotive interior materials.

In particular, the combination of CJ CheilJedang’s top-tier microbial fermentation and purification technology with HDC Hyundai EP’s eco-friendly material compounding capabilities is expected to generate significant business synergy. Furthermore, CJ CheilJedang aims to expand its white bio business scope beyond PHA to encompass eco-friendly bioplastics in general, securing mass production capabilities. HDC Hyundai EP will be able to stably procure differentiated eco-friendly materials, including PHA.

With global environmental regulations expanding and consumer preference for eco-friendly products increasing, demand for eco-friendly bioplastic materials is rapidly growing. The two companies will focus on securing and strengthening compounding competitiveness, which is considered the most important in the bioplastics field, to produce products of the highest global standards.

Choi Eun-seok, CEO of CJ CheilJedang, stated, "Sustainable management has become a necessity rather than a choice for companies, and the plastic circular economy has become a global goal. The collaboration between the two companies is therefore very meaningful," adding, "We expect to play a pivotal role in the eco-friendly materials sector and actively respond to government-level policies promoting the white bio industry."

Meanwhile, CJ CheilJedang leads the global green bio market with annual sales of approximately 3 trillion KRW based on microbial technology. In November last year, it officially entered the white bio market with the marine biodegradable plastic material PHA, and is currently building a dedicated PHA production line with an annual capacity of 5,000 tons at its biofactory in Pasuruan, Indonesia, scheduled for completion by the end of this year. The company plans to expand its white bio business portfolio by pursuing collaborations related to biochemicals with various global companies.

HDC Hyundai EP, a subsidiary of HDC, was established in 2000 after separating from Hyundai Development Company’s petrochemical division. It has led growth in various industries such as automotive, electronics, construction, and household goods through innovation in the functional polymer industry. Last year, it officially entered the bioplastics business by starting production of cellulose-based eco-friendly bio materials.