SK geo centric, Loop Industries to build recycling plant

SK geo centric signed an agreement with Quebec-based Loop Industries to establish a joint plastic recycling plant in Ulsan.

SK geo centric CEO Na Kyung-soo poses for a photo with Loop Industries CEO Daniel Solomita after they signed an agreement to build a plastic recycling plant in Ulsan. [SK GEO CENTRIC]

SK geo centric signed an agreement with Quebec-based Loop Industries to establish a joint plastic recycling plant in Ulsan.

The two parties will form a joint venture for the factory within the year, with SK geo centric holding 51 percent while Loop Industries will hold the 49 percent remaining.

The depolymerization factory will recycle waste PET plastics and polyester fiber into raw materials without quality degradation. Loop Industries owns a patented depolymerization technology.

It will have 70,000 tons of annual capacity and will be situated in the Ulsan complex where SK already has been building recycling facilities.

Demand for recycling of waste PET plastics and polyester fiber is expected to grow amid the global trend for lower carbon emissions, SK geo centric said.

Materials made with polyester, such as sportswear, sewing fabrics and banners, are mostly either incinerated or sent to landfills because they are difficult to recycle with existing technologies.

The joint venture will hold exclusive rights to the commercial use of depolymerization technology in Asia.

SK and Loop aim to build at least three more depolymerization factories in Asia by 2030.

BY SARAH CHEA [chea.sarah@joongang.co.kr]