SK Livio Secures $40 Million Investment from World Bank's IFC, Boosting Eco-Friendly Materials Plant in Vietnam

SKC Biodegradable Materials Subsidiary Secures Global Funding
Vietnam PBAT Plant Construction Began in 2023
"We Will Continue Eco-Friendly Innovation Throughout Production"

SK Livio (SKLIVEO), the eco-friendly materials subsidiary of SKC, has secured an investment of $40 million (approximately 55 billion KRW) from the International Finance Corporation (IFC), a member of the World Bank Group. This marks the first time that global Environmental, Social, and Governance (ESG) funds have flowed into SKC's sustainable materials strategy, and is expected to accelerate the construction of its production facility in Vietnam.

On August 6 (local time), SKC announced that SK Livio and IFC had signed an investment agreement and agreed to cooperate in expanding the global eco-friendly ecosystem, focusing on the biodegradable materials industry. SK Livio is a subsidiary established by SKC in March 2022 to exclusively manage its biodegradable materials business. In December 2023, the company began construction of a high-strength biodegradable polyester (PBAT) production plant in Haiphong, Vietnam, and is currently working toward completion in the third quarter of this year. The IFC investment will be used to fund both the construction of the plant and its future operations.

Members of SK Livio, an investment company in biodegradable materials business under SKC, are holding up a slogan. SKC

After the plant is completed, SK Livio plans to produce 70,000 tons of high-strength PBAT annually. PBAT is a biodegradable plastic that decomposes in nature, but until now, its low strength has limited its applications. SK Livio aims to expand its use to agricultural mulching films and industrial packaging materials by developing high-strength PBAT with improved mechanical strength and heat resistance.

Both companies plan to seek additional opportunities for collaboration in various fields, including sustainable agriculture and eco-friendly materials. After the plant is completed, IFC will support the establishment of an Environmental and Social Management System (ESMS) that meets international standards, and will continue to provide practical cooperation to strengthen regulatory compliance capabilities.

A representative from SK Livio stated, "This investment is a recognition of SK Livio's technological capabilities by the international community," and added, "We will continue to pursue eco-friendly innovation across technology, production, and partnerships." An IFC representative commented, "Biodegradable materials are a key solution for reducing plastic waste," and expressed hope that, "This investment will not only advance the sustainable materials industry, but also contribute to job creation in Vietnam."

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