SK Geo Centric invests $55 mn in US plastic waste recycling firm

South Korea’s SK Geo Centric Co. invested $55 million in US plastic waste recycling company PureCycle Technologies Inc. in a move to transform itself into an eco-friendly chemical producer.

SK Geo Centric, formerly known as SK Global Chemical, said on Tuesday it made an equity investment in PureCycle’s private equity capital raise, becoming a strategic partner and cementing their partnership in the sector. PureCycle obtained $250 million through the fundraising.

PureCycle has a proprietary chemical recycling technology that utilizes a solvent to remove contaminants, odors, and colors from waste plastics to extract Ultra Pure Recycled Polypropylene (UPR PP), according to SK Geo Centric.

“We will secure three key differentiated technologies for advanced chemical recycling, including pyrolysis and depolymerization technologies, and accelerate the establishment of the circular economy for plastics by creating a recycle cluster in Ulsan,” said SK Geo Centric CEO Na Kyung-soo.

Last year, the company announced a plan to invest 600 billion won ($482.7 million) in building the country’s largest plastic waste recycling factory, which can process 184,000 tons of trash a year, about 60% of the country’s total plastic waste.

ASIA EXPANSION

In January, the two companies agreed to set up a joint venture in South Korea and build a plant that can process 64,000 tons of plastic waste a year by the end of 2024 in Ulsan where SK Geo Centric operates a petrochemical complex. The company is set to exclusively sell UPR PP in South Korea from the factory in the coastal city, about 400 kilometers southeast of Seoul.

With the investment, SK Geo Centric and PureCycle plan to expand their businesses together in Asian countries such as China.

PureCycle is scheduled to complete the construction of a plant in Ohio with an annual capacity of 50,000 tons in the fourth quarter of this year. The company sealed pre-sale contracts on products from the factory with global consumer goods manufacturers such as Procter & Gamble Co. and L’Oréal.

PureCycle also plans to break ground for another plant in the US state of Georgia this month to produce 300,000 tons a year.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jongwoo Cheon edited this article.