Lotte Chemical and Yuhan-Kimberly Join Hands for Circular Economy Collaboration Model

Lotte Chemical-Yuhan-Kimberly
Material Innovation Partnership for Sustainable Product Development

Lotte Chemical held a material innovation business agreement ceremony for sustainable product development the previous afternoon, attended by executives including Hwang Jin-gu, CEO of Lotte Chemical's Basic Materials Business, and Jin Jae-seung, CEO of Yuhan-Kimberly. Jin Jae-seung, CEO of Yuhan-Kimberly (left in the photo), and Hwang Jin-gu, CEO of Lotte Chemical's Basic Materials Business, are taking a commemorative photo.

[Asia Economy Reporter Donghoon Jeong] Lotte Chemical and Yuhan-Kimberly are joining forces to expand eco-friendly products and build a circular economy.

On the 13th, Lotte Chemical announced that it signed a "Material Innovation Business Agreement (MOU) for Sustainable Product Development," also known as the "Green Action Alliance," yesterday afternoon with executives including Hwang Jin-gu, CEO of Lotte Chemical Basic Materials Business, and Jin Jae-seung, CEO of Yuhan-Kimberly.

Through this agreement, both companies recognize the importance of developing sustainable materials and applying them to products, aim to develop and stably supply eco-friendly raw materials (bio and recycled), expand the development and market of products using eco-friendly raw materials, and accelerate climate change response and ESG (Environmental, Social, and Governance) management execution through technological innovation collaboration such as recycling waste plastics.

Lotte Chemical and Yuhan-Kimberly plan to establish a strategic resource circulation system by leveraging each company's material technology and product manufacturing capabilities. Lotte Chemical will develop and supply eco-friendly recycled materials, and Yuhan-Kimberly will produce products applying these materials.

As part of their cooperation, the two companies will consider promoting a collaborative model to recycle protective clothing made from PP (polypropylene) materials produced by Yuhan-Kimberly. Noting that protective clothing is typically incinerated after use, the model involves collecting and sorting used protective clothing for recycling, with Lotte Chemical converting it into recycled resin (PP) raw materials, which Yuhan-Kimberly then uses to manufacture recycled material protective clothing to supply to its employees and partner companies.

Hwang Jin-gu, CEO of Lotte Chemical Basic Materials Business, said, "Building a circular economy collaboration model for materials and products is essential for a sustainable future," adding, "As a partner in the circular economy era through expanding recycled and bio-plastic businesses, we plan to produce 1 million tons of recycled plastic products annually by 2030."

Since 2020, Lotte Chemical has been conducting "Project LOOP" to improve waste plastic recycling and collection culture. To build an eco-friendly ecosystem where plastics circulate sustainably, Lotte Chemical is implementing three main strategies: LOOP LOTTE, cooperating with group affiliates to establish a waste plastic recycling system; LOOP Cluster, expanding resource circulation activity bases to companies, local governments, and public/private facilities; and LOOP Social, discovering and commercializing social ventures in eco-friendly and resource circulation fields.

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