SK Livio Breaks Ground on Biodegradable Material Production Facility in Vietnam

SK Rivio, Groundbreaking Ceremony in Haiphong City, Vietnam on the 11th
Construction of the World's Largest Production Facility with an Annual Capacity of 70,000 Tons

Park Won-chul, President of SKC, is delivering a congratulatory speech at the groundbreaking ceremony of the SK Livio biodegradable material production plant held on the 11th (local time) at the Hai Phong Economic Zone in Vietnam. Photo by SKC

SK Livio, an eco-friendly material business investor of SKC, has officially begun construction of the world's largest biodegradable material (Polybutylene Adipate Terephthalate·PBAT) production plant.

On the 11th (local time), SK Livio held a groundbreaking ceremony for the PBAT material production plant in the Hai Phong Economic Zone, Vietnam. About 250 people attended the event, including Park Won-chul, President of SKC, Yang Ho-jin, CEO of SK Livio, other SKC officials, Choi Young-sam, Ambassador of the Republic of Korea to Vietnam, Vietnamese Deputy Prime Minister Tr??ng H?a B?nh, and Hai Phong Party Secretary Le Tien Zhou, along with other local government officials.

SK Livio is a joint venture established in 2022 between SKC and comprehensive food company Daesang for the high-strength PBAT material business. SKC had previously introduced high-strength PBAT technology from the Korea Research Institute of Chemical Technology in 2020 and has been steadily advancing the technology through continuous research and development, preparing for commercialization step by step.

In the first phase, SK Livio is investing approximately 100 million USD in the Vietnam PBAT production facility, which will cover a total floor area of 22,389㎡ and will have an annual production capacity of 70,000 tons, making it the largest single plant in the world. Mass production is targeted for the third quarter of 2025, and SK Livio has also secured additional land for future expansion, proactively laying the foundation for global growth.

PBAT, known as "biodegradable plastic," replaces conventional plastics while naturally decomposing through microorganisms when buried, helping to reduce environmental problems caused by waste. Existing PBAT had limitations in durability and applications, but SK Livio developed high-strength PBAT using proprietary technology that utilizes natural reinforcing material nanocellulose, enabling its use in various applications such as agricultural films, packaging materials, containers, as well as textiles and nonwoven fabrics.

Hai Phong, where the SK Livio production facility is located, is one of Vietnam's three major cities along with the capital Hanoi and southern Ho Chi Minh City. It is recognized as Vietnam's number one port city and a key industrial city. In particular, the Hai Phong Economic Zone, where the SKC biodegradable material production facility will be established, is evaluated as an area optimized for port and logistics infrastructure.

The production facility will produce PBAT through raw material blending, esterification, and polymerization processes. Especially, by utilizing nanocellulose reinforcement technology and SKC’s world-class know-how accumulated over more than 40 years, the process has been optimized to reduce investment costs and increase productivity. Additionally, under full support from the local government, the facility will implement 'RE 100 (Renewable Energy 100%)', supplying 100% of the required electricity solely from renewable energy sources.

Alongside the construction of the production facility, SK Livio will also work on establishing a local eco-friendly biodegradable industry ecosystem. To this end, it has decided to collaborate with An Phat, Vietnam's largest plastic manufacturer. An Phat will invest in SK Livio’s Vietnam corporation and sign a long-term PBAT purchase contract, planning to produce biodegradable plastic products and export them to major global regions.

Park Won-chul, President of SKC, said, "Plastic is one of the essential materials in modern society, but it causes serious environmental problems. Through the groundbreaking of the SK Livio production facility, we want to announce the beginning of SKC and SK Livio’s grand vision to solve plastic problems and achieve a sustainable economy."

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