Used Clothes and Discarded Fishing Nets Reborn as Plastic... SK Geocen Breaks Ground on ARC Project

In the First Year of Business, Targeting 700 Billion KRW in Sales and 300 Billion KRW in Operating Profit

The world's first comprehensive waste plastic recycling complex utilizing all three major chemical recycling technologies will be established in Ulsan.

On the 15th, SK Geocentric announced that it will create a plastic recycling cluster called 'Ulsan ARC (Advanced Recycling Cluster)' on a 215,000㎡ (approximately 65,000 pyeong) site within the SK Innovation Ulsan Complex (CLX) located in Gosadong, Nam-gu, Ulsan. The groundbreaking ceremony was held on the same day. This facility is comparable in size to 22 international standard soccer fields. The total investment cost amounts to 1.8 trillion KRW. The completion date is scheduled for the end of 2025. About 250 officials attended the groundbreaking ceremony, including Prime Minister Han Duck-soo, Ulsan Mayor Kim Doo-gyeom, National Assembly member Park Sung-min, Director Geum Han-seung of the National Institute of Environmental Research at the Ministry of Environment, Lee Seung-ryeol, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, Kim Joon, Vice Chairman of SK Innovation, and Na Kyung-soo, President of SK Geocentric.

Na Kyung-soo, President of SK Geocentric, is presenting the vision of Ulsan ARC, the world's first comprehensive recycling complex, at the Ulsan ARC groundbreaking ceremony press conference held on the 14th at SK Green Campus (Jongno Tower). Photo by SK Geocentric

World's First and Largest Waste Plastic Recycling Complex 'Ulsan ARC'

Ulsan ARC is a facility capable of recycling 320,000 tons of waste plastic annually. This means it can process about 9% of the 3.5 million tons of waste plastic incinerated or landfilled annually in South Korea. The competitiveness of this comprehensive plastic recycling complex lies in implementing the world's three major chemical recycling technologies in one place.

Chemical recycling refers to a recycling technology that maintains material properties without limitation on the number of recycling cycles, unlike physical recycling which has limits on recycling frequency and deteriorates material properties. It efficiently recycles various types of plastics. SK Geocentric explained that since it is practically impossible to completely avoid using plastics, they have secured chemical recycling technology to find ways to use plastics wisely while minimizing negative environmental impacts.

Ulsan ARC is expected to be the world's first industrial complex to utilize all three major chemical recycling technologies: ▲ pyrolysis and post-processing technology (for recycling waste vinyl, etc.), ▲ extraction of high-purity polypropylene (PP), and ▲ depolymerization technology (for PET recycling). Through these three technologies, SK Geocentric plans to recycle waste that has been difficult to recycle so far, such as waste vinyl, banners, fishing nets, PET bottles contaminated with oil and other foreign substances, and old sportswear. In the industry, such waste plastic raw materials are called feedstock. These feedstocks are inexpensive to purchase and are sought after by global B2C (business-to-consumer) brands because they represent 'more challenging recycling' in the carbon-neutral era.

SK Geocentric plans to use this plant as a mother factory and expand into global markets such as Europe and Asia in the future. Na Kyung-soo, President of SK Geocentric, stated at a press conference held on the 14th at SK Green Tower in Jongno-gu, Seoul, "The recycled plastic market size is expected to reach 600 trillion KRW by 2050 (according to McKinsey data)," adding, "Although the plant is not yet built, SK Geocentric has agreed to supply about 30% of the production volume to Amcor, a global packaging company."

Presidents of SK Geocentric and recycling specialist companies attending the Ulsan ARC Groundbreaking Ceremony press conference are conducting a Q&A session about Ulsan ARC. From the left in the photo, Dustin Olson, President of Purecycle Technologies; Na Kyung-soo, President of SK Geocentric; Daniel Solomita, President of Loop Industries; and Ying Staton, Vice President of Plastic Energy, are responding. Photo by SK Geocentric

Plastic Recycling, Sales Over 700 Billion KRW... Leading a 'Petrochemical Renaissance'?

Through its plastic recycling business, SK Geocentric dreams of transforming from a petrochemical company into a sustainable eco-friendly company. Na Kyung-soo, President of SK Geocentric, said, "We will turn the crisis in the chemical industry into an opportunity," and added, "Through Ulsan ARC, which possesses core plastic recycling technologies, we will lead a renaissance of the domestic chemical industry." Applying the concept of renaissance, meaning regeneration and revival, to plastics, they aim to turn waste plastics into new resources and revitalize the chemical industry.

Once Ulsan ARC is operational, SK Geocentric's performance is expected to increase significantly. Na said, "Although 100% pre-sales are possible before operation, since this is the first plant and the price of plastic recycling feedstock may rise further, we have set a target of 70% pre-sales," and estimated, "Sales in the first year of operation are expected to be about 700 billion KRW, with profits around 250 to 300 billion KRW."

CEOs of global partner companies also explained their technological capabilities and future growth plans with Ulsan ARC. Daniel Solomita, CEO of Loop, a Canadian company that recycles PET through depolymerization technology that returns materials to basic raw substances, said, "We are collaborating not only with SK Geocentric and Ulsan ARC but also in France," and added, "SK Geocentric, with its rich experience in chemical manufacturing, is an ideal partner for Loop."

Dustin Olson, CEO of PCT in the United States, said, "Korea is a leading manufacturing country with excellent professional manpower, making it the optimal region to implement PCT's technology facilities," and added, "SK is a global leader in manufacturing and shares our vision in the plastic recycling field (especially PP), so we had no hesitation in choosing them."

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