SK geo centric to invest 400 billion won in fourth EAA plant in China

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SK geo centric to invest 400 billion won in fourth EAA plant in China

Officials from SK geo centric and China's Satellilte Chemical, including SK geo centric CEO Na Kyung-soo (fifth from left), SK geo centric CEO Na Kyung-soo, fifth from left, pose at a signing ceremony on cooperation on the construction of a fourth EAA plant on Wednesday in Lianyungang, China. [SK GEO CENTRIC]

Officials from SK geo centric and China's Satellilte Chemical, including SK geo centric CEO Na Kyung-soo (fifth from left), SK geo centric CEO Na Kyung-soo, fifth from left, pose at a signing ceremony on cooperation on the construction of a fourth EAA plant on Wednesday in Lianyungang, China. [SK GEO CENTRIC]

 
SK geo centric, a chemical unit of the SK Group, is investing 400 billion won ($308.4 million) to add a fourth plant that will produce high value-added chemical material ethylene acrylic acid (EAA) in China.
 
SK geo centric announced Friday it had signed a memorandum of understanding (MOU) with China’s Satellite Chemical — an acrylic acid manufacturer based in Zhejiang — to build a fourth EAA factory in Lianyungang, a city in eastern Jiangsu Province.
 
EAA is a type of high-functional bonding resin that bonds different substances such as metal and plastic or paper and plastic with a powerful adhesive performance.
 
The agreement comes half a year after the companies signed a joint venture agreement to build a third EAA factory in August 2022. It is currently in the engineering, procurement and construction process with the complete construction slated for 2025.
 
The fourth plant will break ground in the second-half of next year, aiming to commence commercial production in 2028 with an annual capacity of 50,000 tons.
 
Once the construction of the fourth factory is completed, SK geo centric said it will have a combined EAA production capacity of 140,000 tons per year, which is enough to procure leadership in the Asian market, the local chemical company said.
 
SK geo centric, formerly SK Global Chemical, currently runs one EAA plant each in the United States and Spain.  
 
“Through our contract to build an additional EAA production plant, we would be able to respond preemptively to the global demand,” said SK geo centric CEO Na Kyung-soo.  
 

BY SEO JI-EUN [seo.jieun1@joongang.co.kr]
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