Joint Venture with Zhong Xuesa Established
Construction of 100,000-ton Capacity Waste Plastic Recycling Plant
SK Chemicals Pangyo Headquarters
[Asia Economy Reporter Oh Hyung-gil] SK Chemicals is establishing a joint venture for plastic waste recycling in China.
On the 25th (local time), SK Chemicals announced that it signed a memorandum of understanding (MOU) to establish a joint investment company with Sheye, a Chinese green material specialist company, in Shantou City, China. Last year, SK Chemicals invested 23 billion KRW to acquire a 10% stake in Sheye, securing the right to purchase 20,000 tons of chemically recycled plastic raw materials.
The joint venture will build a chemical recycling raw material plant with a capacity of 100,000 tons and a chemical recycling copolyester and PET production plant with a capacity of 200,000 tons in China.
The factory site required for construction will be provided by Sheye. Since the factory site is adjacent to the existing Haejung-hap Plant 1, it plans to maximize efficiency in infrastructure utilization, investment cost reduction, management, and operation.
The two companies plan to complete the main contract within this year, start construction of the plant early next year, and begin commercial production as early as the end of 2024. SK Chemicals will hold more than 51% of the shares of the new company, securing management rights.
Starting with the establishment of the joint venture, SK Chemicals plans to continuously expand its global infrastructure to produce and supply green materials from recycled plastic waste. It is also reviewing investment in green material production facilities with an annual capacity of 50,000 tons in Korea by 2025.
Following the world’s first commercialization of chemically recycled copolyester last year, SK Chemicals established a mass production system for ‘SKYPET CR,’ a chemically recycled PET, this year. Through the infrastructure secured in this way, the company aims to grow into a leading chemical recycling plastic company by 2030.
Kim Eung-su, head of the Copolyester Business Division at SK Chemicals, said, "Due to global eco-friendly UN agreements and domestic and international plastic regulations, the trend toward de-plasticization is accelerating," adding, "We plan to expand our recycled plastic business capabilities by securing global bases."
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