#South Korea #Seoul #SK Chemicals #Kelinle #Feedstock Innovation Center

SK Chemicals Sets New Precedent in Recycling

SK Chemicals has made a significant leap toward sustainable recycling by securing in-house feedstock sourcing for the first time in South Korea. The company announced its plans on December 10, 2025, to establish a joint venture with Kelinle, a prominent plastic recycling firm based in Shaanxi Province, China. Together, they will create a state-of-the-art Feedstock Innovation Center (FIC). This venture marks a crucial step forward in transforming how plastics are recycled, enhancing both efficiency and sustainability in the industry.

The Significance of the Feedstock Innovation Center

The Feedstock Innovation Center will be a pivotal facility aimed at converting waste plastics into reusable feedstock. Upon completion, the FIC will enable SK Chemicals to develop a seamless value chain that not only involves the recycling of plastic materials but also the procurement of waste. This places SK Chemicals at the forefront of chemical recycling in Korea, as it becomes the first domestic chemical company to create a dedicated business focused on sourcing waste plastics.

Location and Production Capacity

The new facility will be built on a 13,200 m² site owned by Kelinle in Weinan, China. The process established there will transform various waste plastics into recycled raw materials through an innovative method. The FIC will focus on recycling not only PET bottles but also harder-to-recycle materials like discarded textiles, which typically end up in landfills. Initial production capacity is set at around 16,000 tons of PET pellets per year, with an anticipated increase to 32,000 tons.

Enhanced Competitiveness and Stability

SK Chemicals views the FIC as a crucial component for increasing the stability and competitiveness of its recycling operations. As the demand for recycled materials continues to grow, SK Chemicals aims to ensure a steady supply of feedstock at competitive prices. Currently, the recycling market is often subject to price volatility and supply instability, primarily due to dependence on external suppliers for waste plastics. By incorporating in-house sourcing, SK Chemicals intends to circumvent these challenges, thus promising better operational economics.

Cost Efficiency and Environmental Impact

Establishing the FIC will not only improve cost efficiency but also significantly contribute to environmental sustainability. The facility will primarily process waste materials typically incinerated, such as used blankets, which currently constitute a substantial volume of discarded textiles worldwide. The current recycling rates for these items are alarmingly low—less than 1%. Leveraging advanced recycling technologies, SK Chemicals aims to reclaim these resources, thus making recycling more effective and environmentally friendly.

Ahn Jae-hyun, CEO of SK Chemicals, emphasized that this integration of feedstock sourcing with recycling operations could potentially lower raw material costs by approximately 20%. Reducing reliance on clear PET bottles, which are more resource-intensive to procure, positions SK Chemicals as a leader in cost-effective recycling methods. By innovating in this manner, the company hopes to lower the traditionally high cost barriers associated with recycled plastics, making them more competitive against petroleum-based options.

A Leader in Chemical Recycling

SK Chemicals is already recognized globally as a pioneer in depolymerization-based chemical recycling. This advanced technology allows for the breakdown of waste plastics into their molecular components, making them suitable for renewed use repeatedly without compromising quality. This process holds substantial advantages over conventional mechanical recycling, particularly in hygiene and long-term sustainability.

Additionally, the firm has built the Recycle Innovation Center (RIC) at its Ulsan plant in Korea, linking pilot depolymerization with copolyester production. This connection fosters a robust research-to-production framework, allowing for innovations in textile waste recycling to flourish.

With their joint venture with Kelinle and the establishment of the Feedstock Innovation Center, SK Chemicals is poised not just as a major player in the recycling industry within Korea but as a model for recycling systems worldwide. The emphasis on sourcing and reusing complex waste materials underscores the company’s commitment to a circular economy and environmental stewardship, setting a benchmark for others to follow in the effort to combat the pressing issue of plastic waste globally.

Conclusion

As recycling transforms into a cornerstone of sustainable practices, SK Chemicals’ proactive approach to vertical integration stands as an exemplary model. The completion of the Feedstock Innovation Center in the latter half of 2026 could well be a defining moment, laying the groundwork for a more efficient, cost-effective, and sustainable future in plastic recycling.