SKC to build global hub for biodegradable plastics in Vietnam

SKC President Park Won-cheol, fourth from left. [Courtesy of SKC]

South Korea’s SKC has decided to establish a global production hub for eco-friendly biodegradable materials in Hai Phong, Vietnam, marking a significant step in its environmental initiatives.

SKC announced Monday that Ecovance, SKC’s biodegradable material company, has received an investment license during a license handover ceremony held at Hai Phong Conference Center in the northeastern coastal city of Vietnam last week.

The ceremony was attended by SKC President Park Won-cheol, Secretary of the Hai Phong City Party Committee Le Tien Chau, Ecovance CEO Yang Ho-jin, and other high-ranking officials from SKC and the city.

Biodegradable materials, often referred to as plastics that decompose, have gained prominence in recent years as disposable item reduction efforts gain momentum and related regulations become more stringent. The industry anticipates robust growth, with the global biodegradable materials market expected to exhibit an annual growth rate exceeding 20 percent.

Under the full support of local authorities, SKC and Ecovance plan to commence construction of a polybutylene adipate terephthalate (PBAT) production facility, a key biodegradable material, with the goal of beginning operations by 2025. Ecovance’s production facility has already secured land in the Hai Phong Economic Zone, allowing for future expansion, making it the world’s largest single factory with an annual capacity of up to 70,000 tons.

SKC has been actively promoting the commercialization of high-strength PBAT, developed with proprietary technology through its partnership with Ecovance. Notably, SKC has enhanced PBAT’s durability, addressing a common drawback in conventional PBAT materials by incorporating nanocellulose extracted from wood as a reinforcing agent, elevating its strength to the level of traditional plastics.

In addition to the biodegradable materials venture, SKC’s subsidiary, SK TBMGeoStone, will also establish a production facility at the same location, further cementing SKC’s commitment to sustainable materials development.