"?Plastic Trend"... Seogwang Aluminum Develops Eco-Friendly Special Containers

Seogwang Aluminum Sales Increase 1.5 Times
High Recycling Rate and No Harmful Substances Emitted
No Environmental Tax, Offsetting Price Burden

Aluminum special container 'SKA-C1450' developed by Seogwang Aluminum.
Photo by Seogwang Aluminum

[Asia Economy Reporter Junhyung Lee] As the delivery food and home meal replacement (HMR) markets have expanded due to COVID-19, sales of aluminum containers developed by domestic companies have surged. With plastic waste from food containers becoming a major concern, related companies have turned their attention to eco-friendly containers. Although aluminum containers still carry a price burden, they have several advantages such as no waste disposal fees and no detection of environmentally harmful substances.

Last year, Seokwang Aluminum, a manufacturer of special aluminum containers, saw its sales increase by more than 1.5 times compared to the previous year. Sales of aluminum containers rose by about 220% year-on-year. Hwang Hyejin, CEO of Seokwang Aluminum, said, "Thanks to the growth of the delivery food and HMR markets, demand for eco-friendly packaging containers has increased," adding, "Based on the current trend, the aluminum container market is expected to steadily expand."

Seokwang Aluminum developed special aluminum containers in 2016 that can be used not only in microwaves but also in ovens and gas stoves. Currently, it produces more than 30 types of aluminum containers. Until 2019, it did not receive much attention, but from last year, driven by the growth of the related market, sales began to expand significantly, and the company also entered the U.S. Amazon marketplace.

The reason companies are focusing on aluminum containers is their eco-friendliness. Although the price is 1.5 to 2 times higher than general plastic containers, the recycling rate reaches 90%, making them suitable for ESG (Environmental, Social, and Governance) management. Seokwang Aluminum’s containers have been certified by a nationally accredited testing agency as free from five major harmful substances including lead, cadmium, and nickel.

Aluminum is not subject to environmental fees such as waste disposal charges, which partially offsets the price burden. Currently, the domestic plastic waste disposal fee is 150 KRW per kilogram and is on the rise following eco-friendly trends. The Ministry of Environment announced in its ‘Plastic Waste Reduction Measures for Household Waste’ at the end of last year that it will gradually raise plastic waste disposal fees to levels comparable to advanced countries. The European Union (EU) introduced a plastic tax this year at 0.8 euros (about 1,100 KRW) per kilogram.

There are several advantages to aluminum containers. They are convenient as they can be used not only in microwaves but also in ovens. They allow direct flame cooking, so food can be cooked directly over a fire. They have stronger antibacterial properties than plastic. Additionally, the company explains that aluminum containers are suitable for food storage and cooking because sunlight, moisture, and oil cannot penetrate them.

The higher price compared to plastic products remains a challenge to be solved. CEO Hwang said, "We have not yet entered large-scale production to the extent of our secured mass production capacity," adding, "Increasing production volume and the factory automation currently being introduced could lead to unit cost reductions."

This content was produced with the assistance of AI translation services.