Lotte Chemical Begins Pilot Production of 'Chemically Recycled PET' at Ulsan Plant

Completion of Ulsan Plant 2 Equipment Retrofit with In-House Technology
Pilot Production of 4,200 Tons of Products Over 20 Days

C-rPET Production Process and Lotte Chemical's Business Promotion Plan. Photo by Lotte Chemical

[Asia Economy Reporter Choi Seoyoon] Lotte Chemical announced on the 23rd that it has started pilot production of chemically recycled PET (C-rPET·Chemical Recycled PET), a plastic resource circulation technology gaining attention.

In August this year, Lotte Chemical completed the modification of the PET plant at Ulsan Plant 2 using its own technology and successfully began pilot production of C-rPET. It has completed the construction of facilities for inputting recycled raw material BHET and testing of the polymerization plant for mass production of products, and from the 16th, it will conduct a pilot production of approximately 4,200 tons of product over about 20 days. This establishes a testbed to actively advance the chemical recycling business as an industry leader.

In April last year, Lotte Chemical announced plans to convert its Ulsan Plant, the largest PET production base in Korea, into an advanced base for chemical recycling business with the goal of building a resource circulation ecosystem and expanding sales of eco-friendly products.

To this end, it plans to invest about 100 billion KRW in Ulsan Plant 2 to newly establish the country’s first depolymerization plant (BHET production) capable of processing waste PET with a capacity of 45,000 tons, and by inputting BHET produced here, build a C-rPET production facility with a capacity of 110,000 tons by 2024 to produce PET again.

Subsequently, by 2030, it plans to convert the entire existing PET production process at the Ulsan Plant, with a capacity of 340,000 tons, to C-rPET production. By establishing a resource circulation link from raw materials to product manufacturing, it aims to expand plastic recycling and contribute to achieving sales of over 1 million tons of eco-friendly recycled materials by 2030.

Plastic recycling methods are divided into mechanical recycling and chemical recycling. Mechanical recycling involves collecting waste plastic, converting it into raw material (flakes), and then melting it to manufacture the desired form. Chemical recycling requires advanced technology and investment, making it a high entry barrier area; however, it is gaining attention as a technology that can secure the same quality as conventional plastics from low-grade raw materials and enable repeated recycling, thereby enhancing the potential for resource circulation. Photo by Lotte Chemical

Hwang Jin-gu, Head of Basic Materials Business at Lotte Chemical, said, "This pilot production of C-rPET has laid the foundation for converting the Ulsan Plant, the largest PET production base in Korea, into a green factory," adding, "Once the country’s first depolymerization plant and C-rPET production facilities are completed, we will be able to stably supply large quantities of recycled PET materials."

He continued, "To secure raw materials for mass production of C-rPET and establish a resource circulation culture, we plan to expand win-win cooperation with domestic collection companies."

In August this year, Lotte Chemical signed a memorandum of understanding (MOU) with waste disposal company G-Techno Co., Ltd. to supply 40,000 tons of flakes for C-rPET annually, and is expanding collaboration with related companies.

Furthermore, by developing local communities as forward bases for future waste plastic supply, it is also working to secure economies of scale to expand the recycled plastic business. Through the 'Project LOOP' initiative, Lotte Chemical established the industry’s first waste plastic collection cooperation model involving the private sector, government, and companies.

Last year and this year, it signed agreements with Incheon Metropolitan City and Seongnam City in Gyeonggi Province and is conducting pilot projects such as installing waste plastic collection bins and education at residential complexes and schools, while expanding cooperation with other local governments to promote resource circulation and create social value.

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