SK Chemicals buys Chinese supplier’s recycled raw materials, PET unit
Seo-Woo Jang
Mar 07, 2023 (Gmt+09:00)
Courtesy of SK Chemicals South Korea’s SK Chemicals has created a production system for chemically recycled raw materials and PET for about 130 billion won ($100.1 million).
The company on Monday said its board of directors decided to purchase the chemically recycled raw materials (r-BHET) and PET (CR-PET) unit of Shuye, a Chinese green materials specialist that had supplied raw materials to SK Chemical early on.
The acquired assets include a depolymerization plant that chemically decomposes waste plastic to produce recycled raw materials, as well as a CR-PET factory that uses r-BHET produced there to make PET again.
SK Chemical said it has thus completed the chemical recycling value chain of raw materials-PET-copolyester.
SK Chemicals is the world’s first to secure a mass production system for recycled raw materials and PET. The global energy consulting firm Wood Mackenzie forecasts that the chemically recycled PET market by 2030 will grow to 4.6 million tons worth about 10 trillion won.
SK Chemicals plans to take an early lead by securing price competitiveness through production in China, which boasts smooth supply of raw materials.
“We will lead the global market for recycled plastics through global expansion and advancement of our recycling business model,” SK Chemical CEO Ahn Jay-hyun said.