Targeting Annual Commercial Production of 50,000 Tons by 2028
Following Plants in Spain and the USA,
Proactive Expansion into Asia
SK Geocentric is targeting the global market with ethylene acrylic acid (EAA), a high value-added chemical material. Starting with the third plant currently being established in China, SK Geocentric will become the only EAA producer in Asia upon completion of the fourth plant.
EAA is a type of high-performance adhesive resin that only 3 to 4 global chemical companies can produce. It demonstrates excellent bonding performance between dissimilar materials such as metal and plastic, paper and plastic. SK Geocentric is the only company to commercially produce high-quality EAA with outstanding adhesion.
On the 22nd, SK Geocentric announced on the 24th that it signed a memorandum of understanding (MOU) for the establishment of an EAA plant with Weixing Chemical in Lianyungang City, Jiangsu Province, China. The signing ceremony was attended by SK Geocentric’s President Na Kyung-soo, China Business Headquarters Director Jang Nam-hoon, China Business Development Office Director Chae Yeon-chun, and Weixing Chemical’s Vice President Yang Weidong and General Manager Zhu Xiaodong.
On the 22nd, in Lianyungang City, Jiangsu Province, China, SK Geocentric President Na Kyung-soo (center) and Weixing Chemical Vice President Yang Weidong (right) are discussing the establishment of a new ethylene acrylic acid (EAA) plant, a high value-added chemical material. [Photo by SK Geocentric]
SK Geocentric signed a joint venture establishment contract and investment agreement with Weixing Chemical in August last year to establish the third global EAA plant, and is now additionally promoting the construction of the fourth plant.
The third plant is currently in the EPC (engineering, procurement, and construction) phase, aiming for completion in 2025. The fourth plant will be constructed in the second half of next year with an investment of approximately 400 billion KRW, targeting commercial production of about 50,000 tons annually by 2028.
Upon completion of the fourth plant, SK Geocentric’s global EAA production capacity will reach a total of 140,000 tons per year, securing production capacity to proactively target the Asian market. SK Geocentric has been operating production plants in Texas, USA, and Tarragona, Spain, since acquiring Dow Chemical’s EAA business in 2017.
Thanks to its excellent functionality, EAA is increasingly used in various industries ranging from sterilized packs and vacuum packaging for meat to golf balls and tempered glass. When replacing existing plastic materials used for paper coating, it can reduce plastic usage, which is expected to create more demand in the future.
Na Kyung-soo, President of SK Geocentric, said, “We expect to proactively respond to global demand through the additional EAA plant construction agreement,” adding, “We will secure global competitiveness in high value-added chemical material production through rapid commercial operation and strive to expand our high value-added product portfolio.”
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
