SK Geo Centric to drive 'chemical renaissance' with plastic recycling cluster in Ulsan
Prime Minister Han Duck-soo, center, shovels gravel with SK Geo Centric CEO Na Kyung-soo, sixth from left, and other officials from the government and the company, during a ground breaking ceremony of its Advanced Recycling Cluster (ARC) in the nation's southeastern city of Ulsan, Wednesday. Courtesy of SK Geo Centric
SK Geo Centric is set to tackle growing uncertainties in the chemical market with the world’s first plastic recycling cluster, as the company moves to create value-added yet eco-friendly business opportunities amid the global climate crisis, the SK affiliate said Tuesday.
The vision was announced the day before it held a groundbreaking ceremony on Wednesday for its much-hyped Advanced Recycling Cluster (ARC) in the nation’s southeastern city of Ulsan. The project is worth 1.8 trillion won ($1.36 billion) and the cluster will go into operation in 2025.
“We expect the cluster to generate annual sales of more than 700 billion won after it opens,” SK Geo Centric CEO Na kyung-soo told reporters during a press conference. “Our revenue is forecast to reach up to 350 billion won or 400 billion won.”
The top executive went on to express confidence in the new plastic recycling business, as market demand surpasses supply by a huge margin.
SK Geo Centric CEO Na Kyung-soo introduces the company's Advanced Recycling Cluster (ARC) during a press conference in Seoul, Tuesday. The SK affiliate will break ground for the facility in the nation’s southeastern city of Ulsan, Wednesday. Courtesy of SK Geo Centric
“SK Geo Centric believes the price for recycling plastic will keep rising for the next few years, which will also help us chalk up more margin,” he said. “We have had a sense of craving for new businesses in which profitability is not swayed by the global economic cycle, and want to create our future on our own.”
The ARC will be able to recycle some 320,000 tons of plastic waste each year. The SK subsidiary also plans to build more plastic recycling factories in regions such as Europe and Asia. According to the company, France is actively supporting the company due to the eco-friendly nature of the business.
“Even if we have not broken ground for the cluster, global customers are already reaching out to us, and we are in talks to receive preorders of 30 percent of our annual production capacity,” Na said. “The plastic recycling market will be on course for rapid and clear growth down the road.”
Prime Minister Han Duck-soo welcomed the groundbreaking ceremony on the ARC.
"The world's economic powerhouses are moving to toughen environmental regulations and international companies are also in a race to develop technologies for swift transition to a circular economy," Han said during the groundbreaking ceremony. "Plastic stands at the center of the circular economy. We need to reduce social costs stemming from plastic waste."