SKC to build world's largest biodegradable plastic plant in Vietnam

Industry

Published: 25 Sep. 2023, 15:06

SKC to build world's largest biodegradable plastic plant in Vietnam

SKC CEO Park Won-cheol, fourth from left, poses for a photo during an investment license handover ceremony held in Haiphong, northeastern Vietnam, on Sept. 22, with city government officials. [SKC]

SKC will build the world’s largest biodegradable plastic plant in Vietnam, the chemicals and materials company said Monday.

Ecovance, SKC’s biodegradable material company, received an investment license from Haiphong City on Sept. 22, during the license handover ceremony held at Haiphong Conference Center in the northeastern coastal city of Vietnam.

The event was attended by SKC CEO Park Won-cheol and city government officials.

Backed by the local government’s support, SKC and Ecovance plan to build a production facility for polybutylene adipate terephthalate (PBAT), a biodegradable plastic, in Haiphong by 2025. SKC did not provide financial details of the investment.

The facility will have an annual production capacity of up to 70,000 tons, the largest ever for a single facility, according to SKC. The company has secured a site in the Haiphong Economic Zone for possible expansion in the future as well.

SKC has been developing high-intensity PBAT with enhanced durability, equivalent to that of traditional plastic, via Ecovance. Biodegradable plastic can be used to produce packaging film materials as well as non-wovens for diapers, masks and more.

SKC holds 57.8 percent of Ecovance.

SK TBMGeostone, a biodegradable joint venture with Japan’s TMB, will also build a production facility in Haiphong, with an annual capacity of up to 36,000 tons.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]