Recycling Business Agreement Signed
LG Chem is partnering with CJ Logistics, the largest logistics company in Korea, to recycle packaging wrap used in logistics centers.
On the 6th, LG Chem signed a memorandum of understanding (MOU) for plastic resource recycling and circular economy establishment at the LG Twin Towers in Yeongdeungpo-gu, Seoul.
Under this agreement, CJ Logistics will collect packaging wrap discarded at logistics centers nationwide and deliver it to LG Chem, which will recycle it into wrap using PCR (Post-Consumer Recycle) technology and supply it back to CJ Logistics.
Packaging wrap (stretch film) is used in logistics centers and industrial sites to secure stacked goods and prevent them from shaking. Most of these are polyethylene (PE) products.
LG Chem plans to start supplying 1,000 rolls of recycled wrap this month and increase supply by recycling additional packaging wrap collected from CJ Logistics.
The eco-friendly project between LG Chem and CJ Logistics is expected to reduce delivery waste, which has surged in the untact era, and establish a recycling ecosystem that effectively collects packaging wrap generated at each logistics center by utilizing the logistics network.
According to the industry, the annual collection volume of polyethylene waste in Korea reaches 800,000 tons, but only about 300,000 tons of recyclable resin is available. With a recycling rate of around 40%, the remaining plastic waste is incinerated, landfilled, or converted into waste fuel, highlighting the need for industry efforts and ecosystem development to increase recycling rates.
Han Seok-hee, Executive Director of Polyolefin (PO) Sales at LG Chem, said, “By recycling packaging wrap recoverable from logistics centers nationwide, we will build a plastic circular economy and contribute to carbon reduction for a sustainable future.”
As part of its sustainability strategy, LG Chem has launched diapers and flooring materials using bio-based raw materials and introduced eco-friendly remote controls and set-top boxes made with recycled plastics. In early March, LG Chem began construction of a supercritical pyrolysis oil plant, focusing on carbon neutrality and resource circulation activities.
© The Asia Business Daily(www.asiae.co.kr). All rights reserved.
