SK Chemicals to form China JV for waste-plastics recycling plant

SEOUL, Dec. 10 (Yonhap) -- SK Chemicals Co. said Wednesday it will establish a joint venture with a Chinese plastics recycling firm to build a waste-plastics processing facility aimed at securing a stable supply of recycled plastic materials.

The joint venture with Kelinle will construct a Feedstock Innovation Center (FIC) in Shaanxi Province, with the plant slated to begin operations in the second half of 2026, SK Chemicals said in a press release.

The partnership will allow SK Chemicals to secure a full value chain that extends beyond the production of chemically recycled materials to include the sourcing of waste plastics, the release said.

"It marks the first time a Korean chemical company engaged in chemical recycling has established an entity equipped with facilities for sourcing waste plastics," it said.

SK Chemicals said the establishment of an in-house sourcing system is expected to reduce feedstock uncertainty and enhance cost competitiveness in its circular-recycling plastic business, one of its key future growth drivers.

As the first company in the world to commercialize depolymerization-based chemical recycling, SK Chemicals can recover hard-to-recycle waste, such as textiles, fiberfill and colored polyethylene terephthalate (PET) bottles, as feedstock, the company said.

"The cost advantage gained by converting difficult-to-recycle waste into resources will help break through the price barrier that has historically kept recycled plastics more expensive than petroleum-based materials," the company's Chief Executive Officer Ahn Jae-hyun said.

kyongae.choi@yna.co.kr
(END)