Jinyoung Signs MOU to Establish Stick Alternative and Recycling Platform

Jinyoung recently acquired the semiconductor waste resource recycling company ‘Nechero’ (formerly known as Jeil Environment Corporation) and is now embarking on full-scale new business development through cooperation with domestic financial institutions.

Jinyoung announced on the 8th that it has signed a Memorandum of Understanding (MOU) with Stick Alternative Asset Management, a 100% subsidiary of Stick Investment, to establish a recycling platform.

This MOU focuses on the two companies jointly discovering investment projects in the recycling business, operation and management, and raising investment funds through fund establishment. Jinyoung plans to cooperate with Stick Alternative not only on the ongoing recycling business but also to discover new businesses that can lead the recycling market in the future, securing the stability of the recycling business and strengthening its eco-friendly business portfolio.

Stick Alternative is a private equity fund management company specializing in domestic and international real estate and infrastructure investments, with approximately KRW 1.3 trillion in assets under management (AUM). Its parent company, Stick Investment, is also a private equity fund manager with an AUM of KRW 6.5 trillion as of the end of last year, ranking third among domestic private equity fund managers in terms of fund management scale.

Jinyoung is diversifying its eco-friendly business portfolio by entering the semiconductor waste resource recycling market following its pyrolysis oil business for waste plastics. Its subsidiary, Korea Eco Energy, has been expanding its pyrolysis oil production facilities from two to four units since August. It plans to complete the related permits and approvals early next month and begin full-scale operation by the end of the year. Next year, it intends to further expand by adding four more units. Once all eight production lines operate stably, it is expected to achieve annual sales of up to KRW 13 billion and an operating profit margin of 40%.

Last month, Jinyoung acquired shares in Nechero, a specialized waste resource recycling company, and is currently building the first production facility. The facility is scheduled to start normal operation next month, with full-scale sales expected from January next year. The company explained that as the waste resource recycling business accelerates next year, related performance is expected to record annual sales of KRW 11 billion and EBITDA of KRW 2 billion.

A Jinyoung representative said, “We expect large-scale fundraising for new business investment to proceed smoothly through this MOU, and we will focus the company’s full capabilities on building recycling-related infrastructure and platforms.” He added, “Starting from this MOU, we plan to expand the recycling business by not only raising funds with Stick Alternative but also discovering new businesses.”

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