SK Group’s SKC Co., a chemical subsidiary of the South Korean conglomerate, is gearing up to construct a factory in Vietnam dedicated to producing materials for biodegradable plastics, as part of its robust commitment to expand its eco-friendly materials division. In September 2o23, SKC announced its plans to establish Ecovance, a joint venture involving SKC and two other South Korean partners, in the northeastern Vietnamese city of Hai Phong.
This venture will focus on the production of polybutylene adipate terephthalate (PBAT), a widely-used biodegradable co-polymer that serves as a primary component for various plastic applications. The new facility is scheduled to commence operations in 2025, with an annual production capacity of 70,000 toNs of PBAT.
To mark the occasion, officials from SKC and Ecovance visited Hai Phong, where Vietnamese authorities presented them with an investment registration certificate, signifying the official launch of this environmentally-conscious endeavor. Ecovance specializes in the development of PBAT with enhanced durability, making it an ideal candidate for an array of plastic products, including industrial films, food containers, diapers, and masks.
In addition to the PBAT production, SKC is taking a significant step forward by constructing a separate facility at the same site to manufacture Limex, another biodegradable material, with an anticipated annual output of 36,000 tons. This endeavor underscores SKC’s evolution into an advanced materials company, with a strong focus on the production of secondary battery materials and other cutting-edge components, such as semiconductor packaging.