LG Chem Recycles 3,000 Tons of Annual Waste Plastic Collected from Coupang's Nationwide Logistics Centers
Eco-Friendly Project Created by Korea's Largest Chemical and E-Commerce Companies Collaborating
[Asia Economy Reporter Kim Hyewon] LG Chem is partnering with Coupang, the largest e-commerce company in Korea, to launch an eco-friendly project for the collection and recycling of plastic waste. This initiative aims to reduce the rapidly increasing delivery waste and promote resource circulation.
On the 9th, LG Chem announced that it signed a Memorandum of Understanding (MOU) to establish a plastic recycling and resource circulation ecosystem at Coupang’s headquarters in Jamsil, Seoul, with executives from both companies including LG Chem Vice President Heo Seong-woo and Coupang Vice President Ryan Brown in attendance.
Under this agreement, Coupang will collect approximately 3,000 tons of stretch film discarded annually from its nationwide logistics centers and deliver it to LG Chem. LG Chem will then convert this into recyclable materials that can be reused as packaging materials and supply them back to Coupang. Stretch film is a logistics packaging vinyl wrap used to secure stacked goods at logistics centers or industrial sites to prevent shifting.
The eco-friendly project between the two companies aims to recycle plastic resources recoverable from Coupang’s logistics centers into polyethylene (PE) films and other products through LG Chem’s PCR (Post-Consumer Recycle) technology.
PCR is a recycling technology that converts plastic waste discarded after use into initial raw materials in the form of plastic pellets through sorting, crushing, washing, and other reprocessing steps. Due to the characteristics of recycled resin, PCR products are typically blended with existing products at a certain ratio to improve the reduced physical properties.
Since June, LG Chem and Coupang have been running a pilot project for about three months to collect and recycle stretch film. As a result, they succeeded in developing recycled film that maintains a PCR raw material content of up to 60% while achieving physical properties equivalent to existing products.
The eco-friendly materials recycled through LG Chem’s PCR technology will be applied to Coupang’s packaging films used for product delivery. The two companies plan to build a resource circulation ecosystem that collects and recycles these films again by utilizing Coupang’s logistics system.
In particular, the companies will actively cooperate not only on packaging films but also on collecting and recycling delivery waste such as air cap cushioning materials from delivery customers using Coupang’s Fresh Bag.
LG Chem and Coupang’s eco-friendly project is expected to contribute to reducing the delivery waste rapidly increasing in the untact (contactless) era and to improving the recycling rate of related resources.
According to industry sources, the annual collection volume of PE waste in Korea reaches 800,000 tons, with about 300,000 tons estimated to be recyclable recycled resin. Since the recycling rate is around 40%, the remaining plastic waste resources are incinerated, landfilled, or converted into waste fuel, making industry efforts and ecosystem establishment to increase recycling rates necessary.
Vice President Brown said, "The biggest feature of this project is that customers can participate in eco-friendly movements more easily and conveniently," adding, "Coupang will continue to invest in infrastructure and technology to elevate the level of customer experience."
Vice President Heo said, "Combining LG Chem’s recycling technology with Coupang’s logistics system has enabled us to present another eco-friendly business model for the environment and society," and added, "We will commercialize various eco-friendly plastic materials and become a leading sustainable company that takes the lead in resource circulation and the circular economy."
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