SK Geo Centric, Veolia join forces to lead Asia’s plastic recycling business

SK Geo Centric, an SK Innovation Co. subsidiary focused on the eco-friendly chemical business, joined hands with Paris-based Veolia Environnement S.A. to build a circular economy business. 

SK Geo Centric and Veolia Asia announced Monday that the two sides signed a memorandum of understanding in Seoul on July 22, aimed at revitalizing the circular economy business in Asia.

The French transnational company serves three main areas traditionally managed by public authorities: water management, waste management and energy services. 

Founded in 1853, Veolia reached 28.5 billion euros in revenue last year and hires around 200,000 employees worldwide.

SK Geo Centric President Na Kyung-soo, Veolia Group Senior Vice President and Veolia Asia-Pacific General Manager Christophe Maquet, and Veolia Korea CEO and Branch Manager Hervé Peneau were present at the event. 

The MOU encompasses the two companies’ collaboration in the field of mechanical recycling of plastics and realizing alternative solutions for plastics for which there is still no method of recycling.

SK Geo Centric is the only company in Asia to secure three major chemical recycling technologies. The company has been working toward the goal of recycling 100% of its global plastic production by 2027.

Based on the latest agreement, the two companies will conduct a joint study on PET, polypropylene (PP), and waste plastics used as raw materials for pyrolysis in Asia.

Plastic pyrolysis is a chemical recycling method that treats waste plastics that cannot be recycled using conventional methods, and have therefore been incinerated or landfilled.

In addition, SK Geo Centric and Veolia will cooperate in creating the plastic recycling economy through the creation of a “chemical recycling cluster” in the city of Ulsan.

SK wants to utilize strategic cooperation as the stepping stone to expanding its eco-friendly business to China, Japan and Southeast Asia, where interest in plastic recycling is growing.

Global plastic use and waste are increasing by the year. Annual plastic waste amounts to approximately 360 million tons, of which more than half are incinerated and landfilled.

Reducing such waste and increasing recycling rates is a global challenge. 

Western Europe and the US have begun to see an increase in recycling rates by expanding investment in recycling businesses and applying new technologies. Experts say the importance of a circular economy can only grow in terms of both environmental issues and business management.

The UN forecasts the amount of plastic waste in the Asia-Pacific region to reach 140 million tons by 2030. 

South Korea is also in dire need of expanding its recycling efforts as landfills in the Seoul metropolitan region will be completely banned from 2026.

SK Geo Centric CEO Na said, “In line with the eco-friendly trend worldwide, we will lead the circular economy industry, starting with the Ulsan Recycling Cluster and extending such efforts into the rest of Asia.”

“We are proud of the latest partnership that is fully compatible with Veolia’s resource management goals of reducing carbon emissions and enhancing plastic recycling rates,” Veolia Asia-Pacific’s GM Maquet said.

Write to Ik-Hwan Kim at lovepen@hankyung.com
Jee Abbey Lee edited this article.