SKC will build the world’s largest eco-friendly biodegradable material production facility in Hai Phong City, Vietnam.
SKC announced on Sept. 25 that Ecovance, an investor in the biodegradable materials business, has received an investor registration certificate (IRC) from Hai Phong City at the Hai Phong Conference Center in Vietnam on Sept. 22 (local time).
Ecovance is a joint venture between SKC, Daesang, and LX International. It produces and sells high-strength biodegradable materials.
Biodegradable materials are used in the production of rotting plastic that can replace conventional plastic. The biodegradable materials market is growing rapidly due to tougher regulations on disposable plastic. The global biodegradable materials market is expected to grow at an annual rate of more than 20 percent in the future, according to industry insiders.
SKC and Ecovance will proceed with the construction of a production facility for PBAT, a representative biodegradable material, with the goal of beginning operating it in 2025. Ecovance’s production facility will have a capacity of 70,000 tons per year, the world’s largest for a single plant, and has already secured a site for further expansion in the Hai Phong Economic Zone.
PBAT, a type of synthetic resin, is a biodegradable bio-plastic material that decomposes rapidly in nature through enzymatic reactions with oxygen, heat, and light.
SKC has been promoting the commercialization of high-strength PBAT, a biodegradable material which it developed on its own through Ecovance. In particular, to overcome the low durability of general PBAT, nanocellulose extracted from trees is used as a reinforcing material to significantly boost its strength to the level of general plastic. As a result, it can go into agricultural and packaging film, containers for various consumer products, and non-woven fabrics for diapers and masks.
SK TBM Geostone, a biodegradable LIMEX company in which SKC invested, will also build a plant with a production capacity of 36,000 tons per year by 2025 in the Hai Phong City Economic Zone. Earlier, in 2021, SKC established a joint venture with Japan’s TBM with LIMEX technology to reduce plastic usage and has made preparations for the commercialization of the technology. LIMEX is a new eco-friendly material that mixes limestone with PBAT, a biodegradable resin, instead of general plastic.