Jinyoung Extracts Naphtha from Waste Plastic... "Maximizing Profits through Government Policy Benefits"

Jinyoung, which is diversifying its portfolio centered on industrial specialty films, is entering the pyrolysis oil market to expand its business scope. With the Ministry of Environment leading the expansion of pyrolysis technology applications, new business benefits are expected.

On the 30th, Jinyoung announced that it has decided to acquire a 47.74% stake in Korea Eco Energy.

Jinyoung plans to accelerate performance growth through the high value-added pyrolysis oil new business. Korea Eco Energy possesses technology that extracts naphtha from waste plastics and waste vinyl using heat ranging from 300 to 500°C. Naphtha is in high demand as a main raw material for high value-added chemical products in the petrochemical industry. High-quality naphtha and heavy oil can be produced by processing waste plastics, and by-products can also be sold as asphalt materials.

Full-scale new business sales are expected to begin next year. Korea Eco Energy has completed the construction of a facility measuring 1,100 pyeong in Yeongcheon, Gyeongbuk, and is preparing for production. The company explained that rapid business progress is possible because it already holds a comprehensive waste recycling business license, which is difficult to obtain and limited by local governments.

A Jinyoung official stated, "We plan to expand Korea Eco Energy's pyrolysis oil facilities to 16 units by 2026 and commercialize related plant technologies," adding, "We will grow Korea Eco Energy into a high-quality company capable of generating KRW 30 billion in sales and an operating profit margin of over 45%."

He continued, "The pyrolysis oil industry is a high value-added future promising industry that major domestic petrochemical companies are also considering entering," and added, "We decided to acquire Korea Eco Energy to enter the most environmentally friendly pyrolysis oil market among waste treatment methods and to achieve stable sales and maximize profit margins."

Shim Young-su, CEO of Jinyoung, emphasized, "The acquisition of Korea Eco Energy signifies not only entry into a new business but also change and innovation through ESG management," and said, "As a plastic product manufacturing company such as specialty films, we will fulfill our social responsibilities and obligations and ultimately contribute to environmental preservation by reducing waste."

According to the "Waste Plastic Pyrolysis Activation Plan" announced by the Ministry of Environment, the pyrolysis ratio, which was at the 0.1% level in 2020, is planned to increase to 10% by 2030. As the Ministry of Environment is promoting various support policies to expand the application of pyrolysis technology, the related market is expected to grow rapidly.

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