SK chemicals, a pioneer in commercializing circular recycling (chemical recycling) products, is collaborating with a prominent waste collection and sorting company to drive innovation in the recycling industry.

SK chemicals, led by CEO Ahn Jae-hyun, announced the signing of a Memorandum of Understanding (MOU) on the joint development of waste plastic recycling initiatives in Guangdong, China. This partnership was established at the headquarters of Shanghai Yuekun Environmental Protection Technology, known as Lovere, a leading waste recycling enterprise based in Shanghai.

The MOU signing ceremony was attended by CEO Ahn Jae-hyun, Kang Seok-ho (Strategy Center Director of SK chemicals), Chen Xuefeng (CEO of Lovere), and Ni Chun (Business General Manager of Lovere).

Lovere is a prominent player in household waste collection and sorting in China and operates as a subsidiary of ATRenew, a New York Stock Exchange-listed electronic device collection and recycling company. Lovere collects and recycles approximately 420,000 tons of household waste annually across 37 Chinese cities. The company is known for innovating the recycling value chain in collaboration with the Chinese government, utilizing self-developed AI-based sorting automation devices and digital services, and applying data-driven approaches to waste flow.

Through the MOU, SK chemicals intends to develop a waste plastic collection and sorting business in China, starting with Guangdong Province, where its circular recycling plant is located. Both companies plan to secure waste PET, a vital raw material for circular recycling, through joint investment.

China is a major global producer of waste plastics while simultaneously being a significant consumer of circular recycled materials. SK chemicals' collaboration with Lovere aims to address global environmental challenges stemming from China's status as a major contributor to plastic waste.

The partnership leverages SK chemicals' circular recycling technology, China's abundant resources, and Lovere's collection and sorting capabilities to tackle carbon reduction and waste management issues.

Industry experts note that SK chemicals is expanding its role beyond circular recycling technology to encompass the "collection-sorting-recycled material production" stages of plastics, completing a closed-loop value chain. This expansion is expected to enhance the business viability of SK chemicals, particularly regarding its core product, "copolyester."

As global regulations governing recycled plastics become more stringent, the recycled plastics market is projected to reach 600 trillion won by 2050. SK chemicals, with its rapid establishment of a recycled plastic value chain, is poised to attract increased attention from the global market.

SK chemicals envisions transforming into a company that offers plastic recycling solutions to global manufacturers and brands by constructing recycling clusters and developing digital solutions, starting with this MOU.

CEO Ahn Jae-hyun emphasized the importance of circular recycling technology in the context of strengthening global environmental regulations, stating that it's not merely an option but a necessity. He expressed SK chemicals' commitment to becoming a company that leads the resolution of global environmental challenges through the implementation of a closed-loop system.

Source:prnewswire.com

 

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