SKC plans world’s largest biodegradable plastic plant in Vietnam

South Korea’s SKC Ltd., secured an investment registration certificate (IRC) to establish the world’s largest biodegradable plastics material production facility in Haiphong, Vietnam.

According to SKC on Monday, Ecovance, a joint venture of SKC, Daesang Corp. and LX International Corp., got the IRC from the city government of Haiphong. 

The plant, scheduled to commence operations in 2025, will primarily produce polybutylene adipate terephthalate (PBAT), a decomposable co-polymer extensively utilized as a substitute for conventional plastics. The company anticipates an annual production capacity of 70,000 tons of PBAT from this facility.

Specializing in enhanced durability PBAT, Ecovance employs nanocellulose, extracted from trees, to reinforce the strength of the material. The application of PBAT ranges from industrial films and food containers to everyday products such as diapers and masks.

In conjunction with this, a distinct production facility dedicated to manufacturing SKC’s innovative biodegradable material, Limex, will also be constructed at the same location, aiming for an annual output of 36,000 tons.

Limex, a concoction of limestone and conventional plastic resins like PE and PP, is a strategic initiative to mitigate reliance on petroleum-derived plastics. The integration of biodegradable PBAT in Limex is in progress for commercialization.

To fortify its footprint in the eco-friendly plastics sector, SKC, in 2021, formed a strategic alliance, SK TBM Geostone, with Japan’s TBM Co. focusing on developing and commercializing biodegradable plastic materials.

Operating under the multifaceted SK Group, SKC is transitioning into an advanced materials enterprise, with significant contributions to manufacturing secondary battery materials, semiconductor packaging, and other high-tech components.

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