SK geo centric and Plastic Energy to build Ulsan plastic recycling plant

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SK geo centric and Plastic Energy to build Ulsan plastic recycling plant

Published: 16 Nov. 2022, 13:53 Updated: 16 Nov. 2022, 16:29

Carlos Monreal, left, CEO of Plastic Energy, poses with SK geo centric CEO Na Kyung-soo after signing an agreement to co-build a plastic recycling plant in Ulsan. [SK GEO CENTRIC]

SK geo centric and London-based Plastic Energy may build a plastic recycling plant in Ulsan, the largest of its kind in Asia.

The plant will be a plastic pyrolysis facility that heats plastic waste at above 400 degrees Celsius to convert them to fuel oil.

The two companies signed a "heads of agreement" Wednesday, agreeing to build the factory on a 13,000-square-meter site in Ulsan. Construction will be completed in the second half of 2025, and the plant will have an annual capacity of 66,000 tons.

Heads of agreement are normally non-binding.

The investment size and details about the deal were not disclosed.

SK geo centric said it will also build a 100,000-ton post-processing factory near the plant to remove impurities from the converted pyrolysis oil to make a cleaner oil that can be used in new forms of plastic — which the company calls chemical recycling.

"The latest cooperation with Plastic Energy on the pyrolysis plant will help accelerate our plan of forming a recycling cluster in Ulsan," said SK geo centric CEO Na Kyung-soo.

"We will endeavor to lead the circular economy by strengthening plastic recycling business and partnerships with global companies."

The plastic pyrolysis market is expected to grow at an annual rate of 17 percent to reach 3.3 million tons in 2030, according to SK geo centric.

BY SARAH CHEA [chea.sarah@joongang.co.kr]