- Completed the construction of a biodiesel production facility with an annual

  capacity of 120 ktons
- Developed the BD production technology utilizing the existing facilities for the
  first time in the industry
- Completed the construction of the world’s first environment-friendly PPS

  production facilities and accelerated the market entry process

SK Chemical (CEO and Vice Chairman Chang Geun Kim) succeeded in developing the biodiesel production technology by utilizing dimethyl terephthalate (DMT) for the first time in the domestic bioenergy production industry. It celebrated the completion of the construction of a biodiesel production facility with this technology in the Ulsan factory on April 6.
Biodiesel is produced in the form of oil that can be used in conventional light-oil engines through a reaction between vegetable oil and methanol. It is the environment-friendly fuel with high combustion efficiency and no sulfur compound emissions.
With the completion of the abovementioned facility at the end of the KRW30 billion-investment, SK Chemical now holds the annual biodiesel production capacity of 120 ktons.  The development of a new technology based on the existing facilities has also secured the company with a competitive edge in the global biodiesel market.

The government’s “Medium to Long-term Biodiesel Use Promotion Plan” requires that 1.5% of light oil must contain biodiesel resulting in the domestic biodiesel market to amount to approximately 300 ktons this year. The mix rate is to increase by 0.5%p every year until it reaches 3% by 2012.
Additionally, the ceremony for celebrating the completion of a pilot PPS production facility with an annual capacity of 30 tons took place that day. The facility will mark the launch of the company’s PPS business. SK Chemical develops the new process that does not involve the use of chlorine to produce environment-friendly PPS compliant with the international standards.
The PPS (polyphenylene sulfide) business is being developed as a new growth engine for SK Chemical.  PPS is a type of super-engineering plastics that maintains its inflammable, insulating, chemical-resistant, and durable nature in the prolonged high-temperature (up to 200°C) environment.. This metal-alternative material can be widely used for electric, electronic, and automobile parts.  It can be processed as fibers and utilized in the production of industrial filters.
The global PPS demand was estimated at 57 ktons (worth US$456 million) annually on the basis of the PPS base resin in 2007.  The number has been increasing by 15% or more every year since. The PPS demand of China, in particularly, has been growing by 30 % annually. CPC of the US and Toray, DIC, and Kureha of Japan are some of the key players in the global PPS market.
Vice Chairman Chang Geun Kim of SK Chemical talked about the company’s future plan as follows; “SK Chemical will step forward as a market leader in the new biodiesel and PPS fields by making a timely adaptation to changes in the business environment.  SK Chemical’s technological prowess will provide the customers with goods of unprecedented prices and qualities.”
SK Chemical has launched environment-friendly businesses to pursue sustainable low-carbon and green growth in line with its declaration of “Environment-friendly Green Chemicals” as the core part of a new growth engine.  Furthermore, it is building resources-recycling business sites as a business leader in the time of Climate Changes and High-oil Prices

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