SKC Plans to Construct the World's Largest Biodegradable Plastic Plant in Vietnam

SKC, a prominent chemicals and materials company, has unveiled ambitious plans to construct the world's largest biodegradable plastic manufacturing plant in Vietnam. This significant development was officially announced in a press release issued by the company on Monday.

The pivotal investment license for this groundbreaking project was awarded to Ecovance, a subsidiary of SKC that specializes in biodegradable materials. The license formalities took place during a ceremony held at the Haiphong Conference Center, situated in the northeastern coastal city of Haiphong, Vietnam. Distinguished attendees included SKC's CEO, Park Won-cheol, and high-ranking officials from the local government.

Bolstered by strong support from the local authorities, SKC, in collaboration with Ecovance, is embarking on a mission to establish a cutting-edge production facility in Haiphong, dedicated to manufacturing polybutylene adipate terephthalate (PBAT), a renowned biodegradable plastic. The target timeline for this endeavor is set for completion by the year 2025. While SKC refrained from disclosing specific financial details related to the investment, it is worth noting that the company has secured a strategically located site within the Haiphong Economic Zone. This strategic choice allows for potential expansion in the future, underscoring SKC's long-term commitment to this groundbreaking project.

This state-of-the-art facility is anticipated to possess a remarkable annual production capacity, reaching up to an astounding 70,000 tons. As asserted by SKC, this would make it the world's largest single-facility capacity for producing biodegradable plastics. A core pillar of SKC's mission for this venture is to uphold eco-friendly and sustainable principles throughout the facility's design and operations.

SKC has devoted considerable efforts to developing a high-intensity variant of PBAT with enhanced durability, aligning it with the performance attributes of traditional plastics. This significant achievement has been made possible through Ecovance, the subsidiary spearheading these innovations. The versatility of biodegradable plastics extends to various applications, including the production of packaging film materials and non-woven materials for essential products such as diapers and masks.

At present, SKC holds an ownership stake of 57.8 percent in Ecovance. This underscores SKC's strategic investment in fostering innovation and advancements within the biodegradable materials sector.

In tandem with this monumental biodegradable plastic project, SK TBMGeostone, a biodegradable joint venture established by SKC in collaboration with Japan's TMB, is actively pursuing plans to construct its own production facility in Haiphong. This facility is expected to have an annual production capacity of up to 36,000 tons. By adding its capabilities to the region's growing landscape, this endeavor aligns perfectly with the broader objective of developing sustainable materials and technologies.

SKC's unwavering commitment to biodegradable materials and eco-conscious practices mirrors global efforts to mitigate plastic waste and reduce the environmental footprint of the materials industry. The establishment of these advanced production facilities in Haiphong is a noteworthy stride toward promoting sustainable practices and addressing the pressing challenges associated with plastic waste in today's world.

As SKC ventures into the realm of biodegradable plastics on an unprecedented scale, its endeavors will undoubtedly contribute to a greener and more sustainable future. The forthcoming facility in Haiphong, poised to be the world's largest of its kind, represents a substantial leap forward in embracing environmentally responsible practices and combating the persistent issues related to plastic waste in our modern era.