SK Networks established a joint venture with a local company in Szechuan Province, China for producing recycle PET base materials.
▲SK Networks started operation of a waste PET bottle recycling plant, Szechuan Chemical Recycling Resource Company in the Southwest Resource Recycling Industrial Complex in Neijang City, Szechuan Province, China. The plant can produce 20,000 tons of recycle PET base materials a year, and it plans to expand facilities to produce 60,000 tons of such products a year by 2014.
SK Networks made inroads into the market of recycling waste PET bottles in China, expanding the value chain of its chemical product business.
SK Networks said on May 21 that it launched operation of a waste PET bottle recycling plant, Szechuan Chemical Recycling Resource Company in the Southwest Resource Recycling Industrial Complex in Neijang City, Szechuan Province, China. The plant produces plastic materials by cleaning and processing collected waste PET bottles.
Szechuan Chemical Recycling Resource Company is a 50:50 joint venture between SK Networks and Szechuan Resource Recycling Company, a subsidiary of China Recyclable Resource Development Company, the largest recyclable resource collection company in China that operates the Southwest Resource Recycling Industrial Complex.
The plant can produce 20,000 tons of plastic base materials a year by recycling waste PET bottles.
SK Networks will produce plastic base materials by collecting waste PET bottles through companies in the industrial complex, those in Szechuan Province and the network of Szechuan Resource Recycling Company, its partner. It will market plastic base materials targeting middle and high quality chemical fiber manufacturers in Szechuan Province and Huadong region.
Industry observers expect that SK Networks will be able to grow as a leading company in recycle PET base materials market, leveraging the joint venture in China. China accounts for about 90% of the world’s recycle PET base material market that reaches 6.3 million tons a year.
A manager at SK Networks said, “With operation of the recycle PET base material plant in China, global business capabilities of the company will be further reinforced as it has worldwide networks of chemical materials trading. The company will foster waste recycling business as one of core pillars of its chemical product businesses together with chemical materials trading and rubber plantation business.”
Since it established a branch office in China in 1991, SK Networks has been carrying out a variety of businesses in cooperation with the Chinese government, such as chemicals and steel trading, automotive service, fashion, distribution and real estates.
In particular, the company has been writing success stories in chemical industry in China since it acquired ‘Shantou PS’ in late 2006, which faced a bankruptcy at that time, and turned a profit in 3 years by combining SK Network’s corporate culture, while generating 5 times larger enterprise value than early investment.
Source: e2news
