Seoul: SK Chemicals Co. announced plans to establish a joint venture with a Chinese plastics recycling firm to build a waste-plastics processing facility aimed at securing a stable supply of recycled plastic materials. The collaboration with Kelinle will see the construction of a Feedstock Innovation Center (FIC) in Shaanxi Province, with the plant expected to begin operations in the second half of 2026.

According to Yonhap News Agency, the partnership will enable SK Chemicals to secure a full value chain, extending beyond the production of chemically recycled materials to include the sourcing of waste plastics. The initiative marks the first instance of a Korean chemical company involved in chemical recycling establishing an entity with facilities dedicated to sourcing waste plastics.

SK Chemicals emphasized that the creation of an in-house sourcing system is anticipated to reduce feedstock uncertainty and enhance cost competitiveness within its circular-recycling plastic business, identified as one of its key future growth drivers. As a pioneer in commercializing depolymerization-based chemical recycling, SK Chemicals can recover hard-to-recycle waste, including textiles, fiberfill, and colored polyethylene terephthalate (PET) bottles, to use as feedstock.

The company's Chief Executive Officer, Ahn Jae-hyun, noted that converting difficult-to-recycle waste into resources provides a cost advantage, potentially overcoming the price barrier that has historically rendered recycled plastics more expensive than petroleum-based materials.