#South Korea #Seoul #recycling #SK Chemicals #Kelinle

SK Chemicals Pioneers Vertical Integration in Korea's Recycling Industry

In a groundbreaking move for South Korea's recycling sector, SK Chemicals has initiated the first-ever vertical integration of recycling processes within the country. This initiative stems from a cooperative agreement with Kelinle, a premier plastic recycling firm based in Shaanxi, China. The joint venture aims to establish a Feedstock Innovation Center (FIC), a facility dedicated to processing plastic waste into reusable raw materials. This marks a significant milestone in SK Chemicals' strategy to enhance its competitiveness and sustainability in an evolving market.

The Vision Behind the Joint Venture

SK Chemicals, under the leadership of President Ahn Jae-hyun, is set to launch the FIC in the second half of 2026. This facility will span approximately 13,200 square meters and will be located on a currently unused site owned by Kelinle. The innovation hub is expected to convert discarded plastics, including end-of-life textiles and leftover materials from bottle processing, into high-quality feedstock for chemical recycling. The project underlines a commitment to creating a circular economy where plastic waste is effectively transformed into valuable resources.

Kelinle brings a decade of expertise in local plastic recycling to the collaboration, which is expected to leverage its established supply chain to procure plastic waste effectively. Unlike traditional mechanical recyclers who depend on specific types of plastic waste, the FIC intends to utilize a variety of discarded materials, thus broadening the scope of recyclable inputs.

Addressing Supply Chain Challenges

One of the primary motivations for this venture is to mitigate the volatility and price instabilities currently plaguing the recycling industry. Companies that traditionally rely on external sources for plastic waste often experience fluctuations in availability and price, especially as global regulations increasingly demand recycled materials. By creating an internal supply system for plastic waste, SK Chemicals aims to stabilize costs and ensure a consistent supply of raw materials for their recycling operations.

The FIC will begin with an initial capacity to process around 16,000 tons of PET granules annually, aiming to ramp up to 32,000 tons. This capacity will significantly cater to SK Shantou, reinforcing the company's ability to compete in the market effectively.

Innovations in Recycling Technology

A noteworthy innovation anticipated from the FIC is its capacity to recycle materials that have previously been challenging to handle, such as discarded textiles and other plastics that are generally incinerated or sent to landfills. This has the potential to drastically reduce waste, as an estimated 4.6 million tons of bedding and similar materials are thrown away each year, with less than 1% currently being recycled.

Moreover, the advanced technology utilized at the FIC will facilitate the transformation of these challenging materials into high-quality feedstock at a lower cost than conventional recycled PET bottles. Ahn highlights this advantage, stating, "With the FIC, we aim to establish a comprehensive recycling value chain that encompasses everything from depolymerization to raw materials supply. The financial benefits accrued from processing difficult-to-recycle waste, such as discarded textiles, will play a crucial role in reducing the price of recycled plastics, traditionally higher than their petroleum-derived counterparts."

A Commitment to Sustainability

The establishment of the Feedstock Innovation Center aligns with SK Chemicals' broader strategy of advancing sustainable practices within the plastic manufacturing sector. The company has already made strides, launching a production subsidiary based on chemical recycling in Shantou, China, marking its commitment to global circular recycling efforts. In Korea, SK Chemicals continues to develop the Recycle Innovation Center (RIC) in Ulsan, integrating pilot facilities with production processes.

By continually innovating and investing in technologies like depolymerization and repolymerization, SK Chemicals is solidifying its reputation as a leader in the recycling and plastic manufacturing industries, setting an example for others to follow.

Conclusion

As the world faces increasing pressure to adopt sustainable practices and reduce waste, SK Chemicals is poised to lead the charge in transforming the recycling landscape in Korea. Through their vertical integration approach and collaboration with Kelinle, a promising future for plastic recycling in Korea appears not only attainable but also essential for a sustainable economy.