SK Chemicals on Monday announced that it had acquired a 10% stake in Shuye, a plastic recycling firm based in China. SK Chemicals said the acquisition would help further commercialise eco-friendly plastic called glycol-modified polyethylene terephthalate (PETG). The South Korean company said PETG is free of endocrine disruptor bisphenol A and offers the same transparency as glass. SK Chemicals currently supplies PETG to global personal care brands such as Estée Lauder, L‘Oréal, and Johnson & Johnson.
Under the KRW23-billion ($20.2 million) deal, Shuye will give SK Chemicals the exclusive right of its PETG products and raw materials in the South Korean market. SK Chemicals plans to launch recycled PETG product Ecotria in the third quarter of 2021. It will also increase the ratio of recycled content in its products to 50% by 2025. SK Chemicals currently runs a PETG production unit in Ulsan. Shuye has the technology to chemically break down plastic waste, which can preserve the quality of plastic better than physical methods, according to SK Chemicals.
