SK Innovation's petrochemical subsidiary, SK Geocentric, is showing early strength in trading following news of the construction of a fourth plant for the high-value chemical material Ethylene Acrylic Acid (EAA) in China.
As of 9:20 AM on the 24th, SK Innovation is trading at 159,900 KRW, up 0.44% (700 KRW) compared to the previous trading day.
According to industry sources, on the 22nd, SK Geocentric signed a Memorandum of Understanding (MOU) with China's Weixing (?星) Chemical in Lianyungang City, Jiangsu Province, China, to establish a new EAA plant.
EAA is a type of high-performance adhesive resin produced by only 3 to 4 global chemical companies. It demonstrates excellent bonding performance between dissimilar materials such as metal and plastic, or paper and plastic. Currently, SK Geocentric is the only company capable of commercial production of 'High Acid EAA.'
The fourth plant aims for commercial production of 50,000 tons annually by 2028.
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