Sangji Kyleum Enters Waste Disposal Market... 'Permit Application'

[Asia Economy Reporter Hyunseok Yoo] Sangji Kyleum announced on the 23rd that it has completed the permit application for the ‘Ulsan Mipo Waste Landfill Facility Expansion Project’ and will actively pursue eco-friendly new businesses.

Sangji Kyleum plans to jointly invest with GS Construction and JND, the company holding the business rights for the project site and existing landfill facility, to acquire shares and management rights. The total area of the Ulsan Mipo Waste Landfill Facility Expansion Project is approximately 116,881㎥, and it plans to massively expand the landfill capacity from 766,000㎥.

Recently, with increased time spent at home due to COVID-19 and a surge in disposable product waste, the business potential related to waste treatment is rising. It is considered a promising business that is resilient to economic fluctuations amid the increasing amount of waste generated year by year. Additionally, the waste treatment industry contributes to the E (Environment) aspect of ESG (Environmental, Social Responsibility, Governance).

Assuming the permit for the Ulsan Mipo Waste Landfill Facility Expansion Project is completed, Sangji Kyleum expects large-scale joint business profits over the next 10 years. This project will proceed by expanding the existing landfill facility, and through collaboration with GS Construction, it is expected to reduce risks and enable stable profit generation.

A company official explained, “SK Ecoplant has acquired four waste treatment companies for a total of 418 billion KRW in just the first half of the year, showing fierce competition in securing waste companies in the current M&A market. The waste treatment business is profitable as the amount of waste generated increases every year, and it has high entry barriers due to the permit system, as well as the advantage of contributing to ESG management.”

He added, “In response to these market conditions, Sangji Kyleum expects to achieve visible results soon in eco-friendly new businesses such as waste treatment. Starting with the Ulsan Mipo Waste Landfill Facility Expansion Project, the company plans to focus on expanding environmental-related businesses, including reviewing projects for incineration plants and power plants in cooperation with local governments.”