Business Agreement with Agricultural Specialist Company
Replacing Plastic-Based Coatings
New Product Launch Targeted for Q1 Next Year
SK Livio announced on the 26th that it has signed a business agreement with agriculture-specialized company Nubo for the joint commercialization of 'eco-friendly biodegradable controlled-release coated fertilizer' and is entering the fertilizer market utilizing biodegradable materials. SK Livio is a company established in 2021 as a joint venture between SKC and comprehensive food company Daesang to commercialize biodegradable materials.
Controlled-release fertilizers are designed so that the fertilizer inside the coating gradually flows out according to the crop growth period. Their use is increasing as they prevent excessive fertilizer supply, reduce soil and river water pollution, lower greenhouse gas emissions, and save labor. However, most existing coatings are made of plastic resins such as polyester (PE), leaving microplastics in the soil and causing pollution.
The biodegradable controlled-release fertilizer jointly developed by SK Livio and Nubo drastically improves these issues. Instead of plastic resins, it uses PBAT (Polybutylene Adipate Terephthalate), a 'biodegradable plastic' naturally decomposed by microorganisms, so that after all the fertilizer has flowed out, no coating residue remains. The biodegradation period can be adjusted by the coating thickness, allowing easy control of the fertilizer release rate according to crop growth.
SK Livio and Nubo will jointly develop technologies for commercialization, including raw materials, materials, processes, and product design, aiming to launch a new product in the first quarter of next year. They will also strengthen business model development and overseas marketing cooperation to expand the market.
After the business agreement ceremony for the development and commercialization of biodegradable controlled-release coated fertilizer held on the 24th at the SKC headquarters in Jongno-gu, Seoul, Yang Hojin (left), CEO of SK Livio, and Kim Changgyun, CEO of Nuvo, are taking a commemorative photo. Photo by SK Livio
The biodegradable coated fertilizer market is expected to gradually expand as awareness of microplastics increases. In Europe (EU), one of the largest fertilizer markets along with North America, the use of plastic resin coated fertilizers is planned to be banned starting in 2026.
Earlier, on the 11th, SK Livio held a groundbreaking ceremony for a PBAT biodegradable plastic material production plant in Haiphong City, Vietnam, with an annual capacity of 70,000 tons. The first phase investment is approximately 100 million USD (about 140 billion KRW).
An SK Livio official said, "This agreement allows us to further expand our biodegradable material business," adding, "We will continue to expand the applications of biodegradable materials through steady technological development."
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