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SK Geocentric Co. has acquired a stake worth US$55 million in a US plastic waste recycling startup PureCycle Technologies Inc. through a recent rights offering, in a step to bolster its green business.
A chemical materials unit of South Korean conglomerate SK Group, SK Geocentric has already partnered up with the Florida-based PureCycle to build a polypropylene recycling factory in Ulsan, about 400 kilometers southeast of Seoul.
The factory, which the two businesses aim to finish construction by the end of 2024, will be capable of processing 64,000 tons of cargo each year.
According to SK, PureCycle is establishing a production line in Ohio that can produce 50,000 tons each year and aims to establish a plant in Georgia with a capacity of 300,000 tons each year.
PureCycle specializes in recycling polypropylene waste into ultra-pure polypropylene resin by eliminating pollutants, which may be used in a range of consumer products and automotive and construction materials.
SK Geocentric plans to invest 5 trillion won by 2025 to transform its business portfolio from petrochemicals to green products, aiming to expand the plastic waste recycling capacity to an annual 900,000 tons.
