Hyundai Oilbank expands cooperation to bolster ESG management

Hyundai Chemical's Hyundai feed Petrochemical Complex facilities within Hyundai Oilbank's Daesan Plant, located in Seosan, South Chuncheong Province. (Hyundai Oilbank)

Hyundai Oilbank has been cooperating across industries to improve its environmental impact, the company said in a statement Monday.

The South Korean oil company said it has signed a business agreement with petrochemcial firm Lotte Chemical and retailer LG Household & Health Care on Oct. 17 to kick off its joint ecofriendly plastic project.

According to the agreement, the three companies will jointly launch plastic products created solely from materials derived from pyrolysis of waste plastics.

The process involves heating waste plastics in an oxygen-free setting to break them down into usable chemicals.

Hyundai Chemical, a strategic joint venture between the refining company and Lotte Chemical, will be responsible for creating the eco-friendly plastic by inputting pyrolysis products to its newly established Hyundai feed Petrochemical Complex (HPC), while Lotte Chemical will be in charge of developing products for which the plastic can be used. Meanwhile, LG H&H will use the plastic to create household products.

LG H&H will package its makeup products using containers made from the ecofriendly plastic starting January 2023, as per the agreement. Eventually, the use of ecofriendly plastic will be expanded to include detergent containers, and containers for other household goods.

Hyundai Chemical said it can produce up to 30,000 metric tons of plastic per year at its HPC facilities. The HPC facilities were inaugurated on Oct. 12. The company is considering expanding the facility's production capacity to 100,000 tons in the near future, according to a Hyundai Chemical official.

Meanwhile, Hyundai Oilbank has also signed a memorandum of understanding with US biopolymer manufacturer Danimer Scientific in January to create bioplastic as part of its bioplastic project road map.

Bioplastics are plastics created using plants or other biomass as a raw material.

As per the agreement, a pilot bioplastic facility will start operations in Korea by 2024, and commercial bioplastic factories will start operations in 2030.

Hyundai Oilbank said it has been stressing its environmental, social, and governance management since last year when it first published its ESG report. The company is strengthening its carbon reduction policies in response to the consumers’ demand for ecofriendly corporate activities, the company said in the statement.

By Lee Seung-ku(seungku99@heraldcorp.com)