Kumho Petrochemical announced on the 17th that it has signed a memorandum of understanding (MOU) for the supply of bio SM (styrene monomer) with Japanese refining and petrochemical company Idemitsu Kosan. Japan's Sumitomo Corporation will coordinate the cooperation between the two companies and be responsible for developing the bio polymer market.
Idemitsu Kosan is the second-largest refiner and the largest SM manufacturer in Japan. Kumho Petrochemical plans to produce SSBR, a high-performance synthetic rubber for tires and one of its main products, using bio SM supplied by Idemitsu Kosan. The three companies will complete detailed supply plan discussions and production optimization work by the end of 2024 and then begin full-scale operations.
Bio SM is made from bio naphtha, which is produced from plant-derived raw materials. Traditionally, basic petrochemical feedstocks such as ethylene and butadiene have been made using naphtha extracted mainly from crude oil. However, through this collaboration, Kumho Petrochemical expects to expand the use of bio SM produced from bio naphtha, thereby reducing carbon and greenhouse gas emissions, i.e., its carbon footprint, as well as strengthening its ESG (environmental, social, and governance) management cooperation network.
Kumho Petrochemical has been conducting various ESG management activities, including a recycled styrene (RSM) business that applies recycled PS (polystyrene) to SSBR, and a PCR PS business that reprocesses used and discarded plastic containers to supply high-quality refrigerator parts to domestic home appliance companies.
A Kumho Petrochemical official said, "This signifies a good-faith cooperation where leading companies from Korea and Japan leverage their respective strengths within a framework of mutual growth for a shared future."
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