SK Chemicals signed an agreement with Kelinle, a leading PET recycler in China, to establish a joint venture for the construction of the Feedstock Innovation Center (FIC) in Weinan, Shaanxi Province.
This marks a significant milestone as we become the first Korean chemical company to achieve vertical integration in recycling by securing in-house feedstock sourcing.
The FIC will process waste plastics into feedstock, enabling SK Chemicals to manage the entire recycling value chain from depolymerization and material production to feedstock procurement. This advancement is expected to strengthen cost competitiveness and ensure supply stability in the company’s circular recycling business.
The facility will start with an annual capacity of 16,000 tons, and expand to 32,000 tons, supplying feedstock to SK Chemicals’ Shantou plant, which produces r-BHET and CR-PET for global markets.
“With the FIC, we have secured a complete recycling value chain that extends from depolymerization and material production to feedstock sourcing,” said Ahn Jae-hyun, CEO of SK Chemicals. “The cost advantage gained by turning hard-to-recycle wastes into resources will help overcome the price gap between recycled and petroleum-based plastics.”