Buoyed by Strong Performance... Decision to Build Research Facility for Recycled Raw Materials
Pilot Plant Based on Depolymerization Technology Aims to Operate Next Year
Exploring Recycling of Not Only PET Bottles but Also Fibers and Automotive Parts
SK Chemicals is building a research facility for a 'comprehensive plastic recycling solution' that covers everything from developing recycled raw materials using waste plastics to demonstration research and material production. Despite the downturn in the petrochemical industry last year, SK Chemicals achieved its best performance since its inception, and based on this strengthened foundation, it is expanding into eco-friendly businesses.
On the 18th, SK Chemicals announced that it will establish a pilot plant within the Ulsan plant site located in Hwangseong-dong, Nam-gu, Ulsan, to chemically decompose waste plastics and produce recycled raw materials (r-BHET·recycled BHET). r-BHET is an intermediate raw material product in the polyester family, such as PET and copolyester, and is the core of 'plastic circular' technology. The pilot plant is planned to be constructed with an annual production capacity of 50 tons, aiming to start operation in 2026. SK Chemicals stated that it will connect this pilot plant with the existing copolyester production facilities to create the 'Recycle Innovation Center (RIC).' Through this, the company will establish Korea's first integrated recycling complex facility based on chemical recycling technology called 'depolymerization technology.'
A view of the SK Chemicals Ulsan Plant located in Hwangseong-dong, Nam-gu, Ulsan. SK Chemicals plans to build the 'Recycle Innovation Center,' a comprehensive plastic recycling solution facility, here. Photo by SK Chemicals
Earlier, in 2023, SK Chemicals acquired the assets of Shuye, a Chinese green material specialist company, and established its subsidiary SK Santou to build a waste plastic recycling production base in China. SK Santou owns a depolymerization plant producing 100,000 tons of r-BHET annually. However, the waste plastics used as raw materials for r-BHET production are limited to certain waste resources such as PET bottles. Therefore, research and development will be pursued at the newly established domestic facility to recycle various forms of low-quality waste plastics.
At RIC, commercialization technologies to obtain r-BHET will be verified by inputting not only typical transparent PET bottles but also fibers and automotive parts. Once technologies are developed at the pilot plant, they can be introduced into the production process to immediately confirm their practical feasibility. In particular, fibers are known to be a challenging area for recycling because they contain various materials mixed together, such as polyester yarns, other fibers, and buttons.
With the construction of RIC, SK Chemicals will establish a nonstop research and production system at the Ulsan plant, covering everything from circular recycled raw materials (r-BHET) to circular recycled materials (recycled PET and recycled copolyester). SK Chemicals recorded its best performance last year, led by the eco-friendly new material copolyester. A company official explained that the strong performance last year positively influenced the capacity to invest in the waste plastic recycling business.
SK Chemicals' decision contrasts with the industry trend of postponing waste plastic recycling businesses amid the downturn. Since shifting the portfolio to copolyester, the 'performance driver,' led to successful results, the company reaffirmed its plan to continue strengthening its specialty materials. Jaehyun Ahn, CEO of SK Chemicals, said, "We will work closely with companies in various industries such as food and beverage, automotive, electrical and electronics, and fashion to establish a complete resource circulation system for each industry."
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