SK Geo Centric
and PureCycle Technologies, Inc.– a U.S. recycling technology company revolutionizing plastic waste – signed a joint venture agreement (JVA) to operate the first Polypropylene
(“PP”) recycling plant in Asia.
Equal Ownership of JV
SKGC will make a joint investment with PureCycle to build a plastic recycling plant in Ulsan, South Korea with a capacity of 60,000 tons.
Each company will have 50/50 ownership of the joint venture and the plant is currently expected to be completed by the second quarter of 2025. SKGC will bring marketing capabilities related to market development, strategy, and sales, to the joint venture while PureCycle will provide their patented licenses / IP and contribute technical capabilities.
PureCycle is the world’s only company that can remove odors, colors and other contaminants from PP waste feedstock and transform it into an Ultra-Pure Recycled Resin (“UPRP”) that can be continuously reused. PureCycle is close to completing its first purification plant in Ironton, Ohio, and broke ground on a second recycling facility in Augusta, Georgia earlier this year.
With the JVA signed, SKGC and PureCycle will move forward with plans to open the facility by 2025. SKGC and PureCycle have also agreed to provide SKGC with certain first rights to participate with the potential PureCycle’s expansion in the Asian region. This agreement is expected to expand SKGC’s global market reach.You might also be interested in Plastic Recycling Innovation: Materials, Technologies, Applications Update.?
Reduce Global Reliance on Single Use Plastics
Na Kyung-soo, CEO of SKGC said, “Asia’s first commercial production of ultra-pure recycled PP is in sight. This will take SK Geo Centric to the next level.” He added, “We will continue to contribute to making Korea play a key role in the growing global recycling industry
Dustin Olson, CEO of PureCycle commented, “We are thrilled to be working with SK Geo Centric on this exciting project. This new polypropylene purification plant – the first of its kind in Asia – will not only recycle plastic waste in South Korea, but also supply a new market with premium recycled plastic that can be utilized to develop a diverse array of consumer products. This announcement marks a critical milestone in the fight to tackle the plastic pollution problem on a global scale
PP is a plastic used widely in objects such as food packaging and toys, automotive interior materials and home appliances. Since the conventional mechanical plastic recycling process cannot fully remove odors and contaminants from PP waste, most PP ends up being incinerated or shipped to landfills. With this new venture, SKGC and PureCycle hope to end this cycle and increase the amount of plastic that is recycled and reused in Asia and beyond.
Moreover, with calls to address the plastic pollution crisis and reduce global reliance on single use plastics, there has been a growing demand for recycled plastic resin. The creation of SKGC and PureCycle’s new PP purification plant in South Korea will help meet this skyrocketing demand.Source: SK Geo Centric