SK geo centric begins construction of world's first plastic recycling complex

Industry

Published: 15 Nov. 2023, 18:20 Updated: 15 Nov. 2023, 19:38

SK geo centric begins construction of world's first plastic recycling complex

From sixth from left to right: SK Geo Centric CEO Na Kyung-soo, Ulsan Mayor Kim Doo-gyeom, Prime Minister Han Duck-soo and SK Innovation Vice Chairman and CEO Kim Jun during SK geo centric's groundbreaking ceremony for a 1.8-trillion-won recycling cluster in Ulsan on Wednesday. [SK INNOVATION]

SK geo centric broke ground on the world’s first plastic recycling complex in Ulsan on Wednesday, seeking a new breakthrough amid sector-wide slowdown in the chemical and petrochemical industries.

The chemical company, which is wholly owned by SK Innovation, will invest 1.8 trillion won ($1.38 billion) into the construction of Ulsan Advanced Recycling Cluster (ARC) in the southeastern coastal city by 2025.

Upon completion, which is slated for late 2025, Ulsan ARC will have annual processing capacity of 320,000 tons, which amounts to about 9 percent of the total plastic waste that is currently incinerated or landfilled in Korea. Operations will begin in 2026.

The groundbreaking ceremony was held at SK Innovation’s Ulsan Complex with Prime Minister Han Duck-soo, Ulsan Mayor Kim Doo-gyeom, SK Innovation Vice Chairman and CEO Kim Jun and SK geo centric CEO Na Kyung-soo in attendance.

“SK geo centric wants to open a new history in line with the changing needs of the times, such as the challenges facing the chemical industry and the climate crisis,” said Na in his welcome remarks Wednesday.

SK geo centric expects the project to create 2,600 permanent jobs and generate 38,000 jobs indirectly as well.

The 215,000-square-meter site will house three advanced recycling facilities incorporating technologies from Canada’s Loop Industries, Florida-based PureCycle Technologies and Britain’s Plastic Energy.

The cluster will be capable of three advanced recycling processes. Those include ultrapure polypropylene extraction, which extracts transparent polypropylene through chemical processing; depolymerization, which recycles waste polyethylene terephthalate plastic and polyester fiber, or PER; and pyrolysis, which extracts chemical feedstock from discarded plastics such as waste vinyl.

Loop specializes in depolymerization, PureCycle in ultrapure polypropylene extraction and Plastic Energy in pyrolysis.

Unlike mechanical recycling, which is applicable to only limited types of plastics, advanced recycling changes the chemical structure of plastic waste, and therefore can be applied to a wider variety of plastics while maintaining product quality equivalent to that of conventional non-recycled plastics.

“We have completed presale purchase agreements for approximately 30 percent [of Ulsan ARC’s processing capacity],” said SK geo centric's Na during a news conference in central Seoul a day before the groundbreaking ceremony.

From left: PureCycle Technologies CEO Dustin Olson, SK geo centric CEO Na Kyung-soo, Loop Industries CEO Daniel Solomita, Plastic Energy Vice President Ying Staton during a press conference held on Tuesday in central Seoul [SK INNOVATION]

Na said that the cluster is estimated to generate an operating profit of around 250 to 300 billion won by the time all three facilities begin full operation.

Loop CEO Daniel Solomita, PureCycle Technologies CEO Dustin Olson and Plastic Energy Vice President Ying Staton also attended the conference.

SK geo centric is also planning to expand its recycling business internationally in cooperation with the Ulsan ARC project's overseas partners.

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