SK Chemicals buys 10% stake in Chinese recycled plastic firm

SK Chemicals said Monday that it acquired a 10 percent stake in Shuye, a Chinese firm that specializes in recycling plastic waste, to commercialize eco-friendly plastic called glycolmodified polyethylene terephthalate, or PETG.

PETG is a plastic free of environmental hormone bisphenol A, an industrial chemical used to manufacture typical plastic. PETG offers the same transparency as glass but offers greater durability. PETG made by SK Chemicals is currently supplied to global cosmetics brands including Johnson & Johnson, Estée Lauder and L‘Oréal.

The 23-billion-won ($20.2 million) deal will give SK Chemicals the exclusive rights on Shuye’s recycled PETG raw materials and products in South Korean market. Also, Shuye will be obligated to supply 20,000 metric tons of recycled PETG raw materials to SK Chemicals first.

“In the third quarter, SK Chemicals will roll out recycled PETG product Ecotria and expand the ratio of recycled product to 50 percent by 2025,” a company official said. SK Chemicals currently has a PETG production facility in Ulsan.

Shuye has the technology to disassemble plastic waste chemically, rather than physical shredding it, to preserve the quality of plastic, according SK Chemicals.

By Kim Byung-wook (kbw@heraldcorp.com)