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SK Global Chemical rebrands to SK Geo Centric in line with its strategy to be focused on recycling and eco-friendly materials

September 10/2021

MOSCOW (MRC) -- Koreas SK Global Chemical has changed its name to SK Geo Centric with effect from Sep. 1 as it adopts a strategy centered on recycling and eco-friendly materials, according to CHEManager.

The plastic waste problem could turn into an opportunity. We will grow into the worlds largest urban oilfield company that converts plastic waste back into oil, said SK Geo Centric CEO Na Kyung-soo.

The companys primary goal is to establish facilities to process 900,000 t/y of plastic waste, which is equal to its annual domestic plastic production, by 2025, ramping up to 2.5 million t/y by 2027. It plans to invest about 5 trillion Korean won by 2025, both in South Korea and internationally, which will also include expanding capacity for green materials.

In addition, the Seoul-based group proposes to recycle 2.5 million t/y of plastic waste. It has signed Memoranda of Understanding with undisclosed domestic and international partners while it develops its own pyrolysis post-processing technology. Based on collaborations with overseas partners that own chemical recycling technologies such as solvent extraction, depolymerization and pyrolysis, SK Geo Centric intends to invest in plants both within and outside South Korea.

Besides, by working with the South Korean government and SMEs throughout the recycling chain, the company said it will build a recycling cluster that can process PE, PP, PET and complex materials.

The plastic recycling market will grow by 12% by 2030, and the plastic waste market size is expected to reach 600 trillion Korean won by 2050. This implies that there is much room for growth, said Na. In the year 2025, we will create 600 billion Korean won in EBITDA from the eco-friendly and recycling sector to offset existing businesses, and also become a completely green company, even from a financial standpoint.

SK Geo Centric will also increase production of eco-friendly materials from 500,000 t/y to 1.9 million t/y by 2025, and use bio-oil and pyrolysis oil in its plastics production rather than petroleum-based raw materials.

We remind that, as MRC reported before, South Korea's SK Innovation Co Ltd said in August, 2021, iit is considering spinning off and listing its growing battery business, taking a page out of rival LG Chem Ltd's playbook that is on track to list its battery unit this year. The move, announced by SK Innovation CEO Kim Jun earlier this year, comes as demand for electric vehicles (EVs) surges and carmakers partner with battery makers to ensure uninterrupted supplies.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,176,860 tonnes in the first half of 2021, up by 5% year on year. Shipments of exclusively low density polyethylene (LDPE) decreased. At the same time, PP shipments to the Russian market were 727,160 tonnes in the first six months of 2021, up by 31% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased. Supply of statistical copolymers of propylene (PP random copolymers) subsided.
Author:Margaret Volkova
Tags:PE, homopolymer PP, car components, batteries, petrochemistry, recikling, SK Corporation, SK global chemical, South Korea.
Category:General News
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