• Acquired 10% stake in Chinese recycling company Shuye and secured 20,000 tons of raw material production capacity.
• Full-scale production to start in third quarter to boost copolyester market competitiveness and strengthen ESG management

SK chemicals (CEO: Jeon Kwang-hyun) is investing in a Chinese waste plastic (PET) recycling company to commercialize the world's first chemically recycled copolyester (PETG).

SK chemicals announced on the 17th that it has invested 23 billion won for a 10% stake in Shuye, a Chinese company with the technology and facilities to chemically decompose waste PET, and secured an off-take agreement for 20,000 tons of chemically recycled raw material production capacity. Through this investment, SK chemicals has obtained exclusive rights for chemically recycled raw materials and chemically recycled PET-related products in the Korean market. The decision was made to proactively respond to the rapidly increasing demand for the eco-friendly packaging market following global policies to reduce disposables and expand the use of recycled materials.

An official from SK chemicals explained, “To establish a stable production base for chemically recycled copolyester (PETG), we considered an overseas investment in raw materials, which led us to our equity investment in a Chinese waste plastic recycling company.” In addition, the official said, "We will do our best to establish a virtuous cycle system of actively solving environmental problems by conducting research and preparing for the establishment of recycling infrastructures in Korea."

SK chemicals recently announced plans to launch the chemically recycled copolyester “ECOTRIA CR” this third quarter to increase its sales of recycled products to 50% of total sales by 2025, and is on track to meet this timeline.

Current methods of recycling waste PET are divided into “physical recycling” technology and “chemical recycling” technology. “Physical recycling” technology involves mixing and using PCR (Post-Consumer Recycled) processed by crushing collected PET bottles. “Chemical recycling” technology breaks down and returns plastic to its pure, raw material state to produce high quality polymer plastics. Unlike “physical recycling,” the process can be repeated without compromising the quality of the plastic product.

When “ECOTRIA CR” is released, SK chemicals will secure a diverse lineup of the industry’s highest-level eco-friendly packaging materials, including ▲ “ECOTRIA CR,” which uses raw materials made from chemical recycling, ▲ “ECOTRIA R,” which uses raw materials made from recycled PETs (PCR), and ▲ “ECOZEN Claro,” a highly transparent material. Copolyester is attracting attention from domestic and foreign cosmetic companies and container manufacturers because it has excellent chemical resistance and high transparency even when used to make thick containers. Recently, SK chemicals has been actively collaborating with domestic and foreign companies on ways to reduce and recycle plastic waste.

SK chemicals Copolyester Business Manager Kim Eung-soo said, “By securing a stable supply of raw materials, we have not only established a production base for chemically recycled copolyester (PETG), but also gained new business opportunities for chemically recycled PET (CR PET).” And, “We plan to do our best to succeed in commercial production of the world's first chemically recycled copolyester.”

In preparation for the expansion of the eco-friendly plastics market, the company plans to complete the expansion of its copolyester production facilities by the end of June and strengthen the ESG management system through the production of chemically recycled copolyester.


# Photo description: Cosmetic container made of SK chemical's “Chemically Recycled Copolyester”