In Partnership with China’s STL
SK Global Chemical, a subsidiary of SK Innovation, announced on March 14 that it has signed a business agreement with STL, a petrochemical company in China, to establish a joint venture to produce and sell ethylene acrylic acid (EAA), a functional adhesive resin used for packaging goods such as aluminum foil.
The new joint venture will be established with a total investment of 200 billion won by the end of 2021 with SK Global Chemical accounting for 60 percent of the investment and STL 40 percent. SK Global Chemical has EAA production technology and sales channels while STL can supply stable raw materials. They are aiming to dominate the Asian market including China by teaming up with each other.
SK Global Chemical acquired the EAA business from Dow in 2017. With this joint venture, it will build a global high value-added material production network that encompasses its bases in the United States and Spain.
Global EAA demand is expected to grow by 10,000 tons annually, reaching 439,000 tons by 2030, analysts say. China's market for fresh food packaging is on a sharp rise as demand for packaging and delivery has soared.