SK Chemicals Launches Innovative Recycling Center for Plastics in Korea

Seoul, South Korea - February 18, 2025
In a significant step towards sustainability, SK Chemicals, renowned for being the world’s first company to produce chemically recycled materials on a large scale, has announced the construction of a comprehensive recycling solutions center in Ulsan, Korea. This ground-breaking initiative aims to accelerate the commercialization of advanced depolymerization technologies, which convert plastic waste into valuable raw materials.

The Recycling Innovation Center (RIC)

The new facility, known as the Recycling Innovation Center (RIC), will be situated in SK Chemicals’ Ulsan plant, focusing on the sustainable production of circular recyclable materials through innovative recycling methodologies. The center aims to integrate research, demonstration, and production capabilities, effectively creating a closed-loop system for resource circulation. By utilizing proprietary depolymerization technology, the center will validate and commercialize methods for converting various types of low-grade plastic waste, which have previously been challenging to recycle.

This initiative is not only the first of its kind in South Korea but also positions SK Chemicals on the forefront of the global recycling movement. The new pilot installation is expected to commence operations in 2026, aiming for an annual production capacity of 50 tons of recycled BHET (r-BHET), a crucial ingredient for producing sustainable polyester products.

Expanding Recycling Capabilities

One of the primary goals of the RIC is to tackle the complexities associated with textile recycling, where diverse material types are often mixed. Current recycling methods have typically struggled with fabrics that include various fibers, making the recycling process inefficient. However, with SK Chemicals’ innovative technology, the aim is to process these textiles more effectively.

The RIC will significantly enhance SK Chemicals’ existing production lines, which include the mass manufacturing of recycled copolyester products, by linking the new depolymerization pilot plant with established commercial facilities. Notably, the facility will serve to validate methods that allow for the rapid adaptation and commercialization of recycling processes tailored to meet the varying demands of multiple industries, such as automotive, electronics, and fashion.

A Vision for Closed Loop Recycling

The concept of a Closed Loop system is integral to SK Chemicals’ sustainability vision. By re-establishing a full circulation framework, waste plastic, which would otherwise go to landfills or incineration, is processed through a system of collection, shredding, cleansing, depolymerization, and repolymerization to recreate materials identical to those derived from fossil fuels. This innovative approach is designed to ensure that products such as electronic devices and beverage containers can be manufactured from previously discarded materials, contributing to the circular economy.

Given that most recycled PET from collected bottles is converted into fibers, which are later disposed of, the new RIC plays a critical role in establishing an efficient recycling chain that could drastically reduce plastic waste.

Collaborative Efforts for Resource Stabilization

In enhancing its recycling capabilities, SK Chemicals aims to strengthen partnerships across key sectors including beverages, cosmetics, electronics, and automotive. These collaborations are essential for creating stable waste resource supply chains and establishing a supportive infrastructure for plastic waste recycling. By harnessing optimized depolymerization technologies tailored for each industry, SK Chemicals is strategically positioning itself as a leader in resource recycling and waste management.

Ahn Jae-hyun, CEO of SK Chemicals, commented, “The establishment of an integrated research and production system that handles everything from recycled raw materials to recycled plastics will be a pivotal moment in accelerating circular recycling innovations in the plastic ecosystem. Through close cooperation with businesses in food and beverage, automotive, electronics, and fashion sectors, we will construct comprehensive resource circulation systems for each industry.”

SK Chemicals is proud of its history of innovation in the recycling sector, previously being the first to commercialize circular recycled copolyester using chemically recycled raw materials in 2021. The company also pioneered the supply of circular recycled PET in Korea in 2022 and has since built a solid production base for recycled plastic waste through strategic investments, including acquiring a stake in Shuye Environmental Technology in China and establishing SK Chemicals Shantou.

With the recycling innovation center, SK Chemicals is not just paving the way for advanced recycling technology; it is leading the charge towards a more sustainable future.