POSCO Int'l expands into bioplastic recycling business

POSCO International, a subsidiary of South Korea's steel-making-oriented POSCO Group, announced on Wednesday its entry into the biodegradable bioplastic recycling industry. The company plans to develop and commercialize recycling technology for polylactic acid (PLA), which is an environmentally friendly plastic made from corn starch or sugarcane and decomposed by microorganisms.

To quickly enter the market, POSCO International signed a business agreement for PLA recycling technology development and commercialization with TotalEnergies Corbion and Korea’s Esol Industry. TotalEnergies Corbion is a joint venture between France’s TotalEneriges and the Netherlands’ Corbion, and the world's second-largest manufacturer in the PLA field with a leader in recycling technology. Esol Industry is the top player in the domestic PLA market share.

POSCO International will oversee overall planning and management, with financial support, while TotalEnergies Corbion will help transfer technology for building a recycling plant using its PLA production know-how. Isol Industry will be responsible for supplying waste PLA stably for the recycling business.

The global bioplastic market is expected to grow by an average of 21.7% per year from $10.4 billion in 2020 to $27.9 billion in 2025, according to Market & Markets and other market research firms cited by the industry. PLA, a representative bioplastic, is expected to grow faster than the overall bioplastic market, increasing from $1.9 billion in 2020 to $5.6 billion in 2025.

With an expected increase in PLA usage comes an increase in waste. In Korea alone, more than 8,000 tons are generated annually as of 2022, indicating steady growth for the recycling industry using waste PLA.

Through the agreement, POSCO International plans to lead the recycling industry by completing PLA recycling technology development by 2026.

It also plans to continue promoting activities targeting the general public, such as "Green Butterfly," a waste PLA collection campaign jointly with Esol. POSCO International is a globally integrated corporation that has been expanding business in various fields, such as energy, steel, agro and component materials, based on its over 80 global networks and marketing expertise.

Write to Ik-Hwan Kim at lovepen@hankyung.com