SK Geocentric CEO Na Kyung-soo and Purecycle Technologies Inc. CEO Dustin Olson pose for a photo at a recent signing event for their plastic recycling joint venture, in this photo provided by SK on Oct. 27, 2022.
SEOUL, Oct. 27 (Korea Bizwire) — SK Geocentric Co., a chemical unit of South Korea’s SK Group, said Thursday it has signed a binding joint venture agreement with a U.S. partner to build a plastic recycling plant here as it pushes to pivot to green chemicals business.
The 50:50 joint venture with Purecycle Technologies Inc. will establish a factory in the southern industrial city of Ulsan, where SK’s main chemical complex is located, by the second quarter of 2025, SK said in a release.
SK did not provide details on the size of the investment, citing terms of the contract.
SK and Purecycle agreed to form a joint venture last year. SK has acquired a stake worth US$55 million in the Florida-based company.
The plant aims to annually process 73,000 tons of recycled PP, one of the most widely used plastics, using Purecycle’s technologies.
SK Geocentric will hold exclusive sales rights domestically, and licensing rights in China and major economies in Southeast Asia.
Purecycle specializes in recycling polypropylene waste into ultra-pure polypropylene resin by removing contaminants. The recycled plastic can be reused in various consumer goods as well as automotive and construction materials.
Stepping up its overseas push, SK Geocentric said it has also signed a memorandum of understanding with China’s Haier Group Corp., a global home appliance company, for cooperation in plastic recycling business.
They will work together to secure plastic waste from used home appliances and develop recycled plastic products, such as automotive components and packaging materials, SK said.
(Yonhap)
