SK Chemicals to establish joint venture with Shuye Environmental Technology for recycled plastic factory
SK Chemicals will establish a joint venture with Guangdong-based Shuye Environmental Technology to build a factory for recycled plastic in China.
The two companies signed an agreement Monday to build a plant that produces recycled polyester (PET) and copolyester in Shanyto.
Park No-hyuk, general manager at SK Chemicals Shanghai, and Lin Shuguang, president at Guangdong Shuye Environmental Technology, participated in the agreement signing ceremony.
The site will be provided by Shuye, and the construction will likely start at the beginning of next year. The manufacturing is set to start at the end of 2024. The plant will have an annual capacity of 200,000 tons.
The amount of investment has not been disclosed, but SK Chemicals said it will hold 51 percent of the joint venture.
"The trend of removing plastics has been accelerating worldwide," said Kim Eung-soo, head of the copolyester business at SK Chemicals, in Monday's release. "We aim to expand our recycled plastic business by securing a foothold in the global market."
Last year, SK Chemicals acquired 10 percent of Shuye for 23 billion won ($18 million).
The recycled plastic market is expected to account for 60 percent of the total plastic market in 2050, according to a report from McKinsey.
BY SARAH CHEA [firstname.lastname@example.org]