October 24, 2022 | | Mary Bailey
SK Geocentric (SKGC; Seoul, South Korea), a global leader in the production of polypropylene (PP) based in South Korea, and Pure Cycle Technologies Co., Ltd. Signed a joint venture agreement (JVA) to operate the first polypropylene recycling plant in Asia. SKGC will jointly invest with his PureCycle to build a plastic recycling plant in Ulsan, South Korea with a capacity of up to 60,000 tons per year. Currently scheduled for completion by the second quarter of 2025, the plant will turn contaminated plastic feedstock into infinitely reusable and recyclable ultra-pure recycled (UPR) resin.
Each company will have 50/50 ownership of the joint venture. SKGC will bring marketing capabilities in go-to-market, strategy and sales to the joint venture, while PureCycle will provide patented refinery recycling technology/IP and technical capabilities. PureCycle has the unique ability to remove odors, colors and other contaminants from PP waste materials and convert them into Ultra-Pure Recycled (“UPR”) resins that can be continuously reused. PureCycle is nearing completion of its first purification plant in Ironton, Ohio, and broke ground on his second recycling facility in Augusta, Georgia earlier this year.
With the JVA’s signature, SKGC and PureCycle will move forward with plans to open the facility by 2025. PureCycle has also agreed to provide SKGC with certain initial rights to join PureCycle should PureCycle pursue expansion in the Asian region. The deal is expected to expand SKGC’s reach into the global market.
And SKGC CEO Kyung-soo said, “Asia’s first commercial production of ultra-pure recycled PP is just around the corner. This takes SK Geocentric to the next level.” I will continue to contribute so that I can play an important role.”
PureCycle CEO Dustin Olson said: “We are thrilled to be working with SK geo centric on this exciting project. The first in Asia, this new polypropylene refining plant will not only recycle plastic waste in South Korea, but will also be used to develop a range of consumer products.” “This announcement marks an important milestone in our fight to tackle global plastic pollution.”
PP is one of the most widely used plastics and is used in a wide variety of household and commercial products such as food packaging, toys, automotive interiors, and home appliances. Traditional mechanical plastic recycling processes cannot completely remove odors and contaminants from PP waste, so most PP ends up being incinerated or sent to landfills. With this new venture, SKGC and PureCycle hope to end this cycle and increase the amount of plastic recycled and reused in Asia and beyond.
Additionally, the need to address the plastic pollution crisis and reduce global reliance on single-use plastics has increased the demand for recycled plastic resins. SKGC and PureCycle’s creation of his new PP refining plant in South Korea will help meet this growing demand.
