SK Geo Centric to supply recycled plastic materials to Amcor

SK Geo Centric Co., a South Korean petrochemical company, announced on Thursday it has entered into an agreement to supply recycled plastic materials to the US-based packaging company Amcor plc.

The South Korean company will provide materials sourced from pyrolysis oil starting in 2025 from the Advanced Recycling Cluster (ARC) in Ulsan. 

Pyrolysis oil is obtained by liquefying and extracting oil from discarded plastic waste, which would otherwise be either incinerated or deposited in landfills.

SK Geo Centric delivers polyethylene (PE) and polypropylene (PP) produced from recycled plastic. Amcor uses these materials to manufacture packaging for pharmaceuticals, cosmetics, food products and more, selling them to global consumer goods companies. The two companies have also agreed to explore further cooperation in the packaging sector.

Amcor, listed on the New York Stock Exchange, is a supplier of packaging materials for industries including food, pharmaceuticals and beverages. As of last year, it had 41,000 employees working in 218 facilities across 41 countries, with an annual revenue of $14.7 billion.

SK Geo Centric expects a growing demand for recycled plastic materials produced at the Ulsan ARC, which is still under construction. The Ulsan ARC is expected to produce approximately 320,000 tons of recycled plastic materials annually.

Write to Hyung-Kyu Kim at khk@hankyung.com