SK Chemicals inks asset purchase agreement with Shuye to enter recycled PET market

SK Chemicals inks asset purchase agreement with Shuye to enter recycled PET market

Signed a US$98.4 million asset purchase agreement with Shuye of China... Secured the world's first mass production system for recycled raw materials and PET

  • By ICN Bureau | March 16, 2023

SK Chemicals accelerates its entry into the global market and business expansion with the world's first chemically recycled BHET (r-BHET) and chemically recycled PET (CR-PET) production system.

SK chemicals announced that it held a Board of Directors meeting and signed an asset transfer agreement related to the chemically recycled BHET and chemically recycled PET business division of Shuye, a Chinese company specializing in green materials. The acquisition price for this deal is approximately US$98.4 million. .

Ahn Jae-hyun, the CEO of SK Chemicals, said, "The early securing of chemically recycled BHET will accelerate the enhancement of our corporate value through the recycling business as a part of our financial story expansion," and added, "We will strive to become a leading company in the global recycled plastic market by pursuing global expansion and advanced recycling business models."

SK Chemicals’ acquisition of Shuye's assets includes a depolymerization plant that chemically decomposes waste plastics to produce recycled BHET and a CR-PET production facility that uses the r-BHET produced here to make PET again. As a result, SK chemicals has secured the world's first commercially available polyester chemically recycled raw materials and production facility, which can be sold separately.

Through the acquisition of Shuye's assets, SK Chemicals has obtained a commercial production system for chemically recycled BHET and products that utilize depolymerization technology about 1-2 years ahead of other domestic companies. By producing recycled plastic raw materials such as waste PET in China, where there is abundant supply, SK chemicals is expected to gain a high level of price competitiveness.

With this, SK Chemicalshas completed a recycled plastic value chain that extends to chemically recycled BHET, chemically recycled PET, and chemically recycled copolyester (CR-Copolyester), securing the sustainability of copolyester, which is its core business, and laying the groundwork for new growth.

According to Wood Mackenzie's report, the global recycled PET market in 2022 is approximately 9.7 million tons, with the majority of the market currently being mechanically recycled PET (MR-PET). The chemically recycled PET market, which is yet to be formed due to raw material shortages such as 'r-BHET,' is expected to rapidly grow by 2030 to form a 4.6 million-ton (about US$7.57 billion) market.

Along with the expansion of its copolyester business, SK Chemicals plans to make the chemically recycled BHET and chemically recycled PET businesses with high growth potential as new growth drivers and focus on them starting from the early stage of market formation.

SK Chemicals’ strategy is to supply chemically recycled PET to the domestic and foreign food and beverage bottle markets, as well as the food packaging film market, highlighting its excellent properties such as transparency, appearance, and stability.

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