SKC

SK Leaveo breaks ground on a biodegradable material plant in Vietnam

● SK Leaveo held a groundbreaking ceremony in the Special Economic Zone of Hai Phong City, Vietnam on the 11th to build the world’s biggest production plant with an annual throughput of 70,000 tons

●​ Maximizing quality and productivity with proprietary technologies and building eco-friendly material ecosystem with Vietnam’s biggest plastic company

●​ SKC CEO Woncheol Park says, “the project marks the beginning of SK Leaveo’s far-seeing dream of resolving the plastic crisis and fostering a sustainable economy”

SK Leaveo, the eco-friendly material production arm of SKC (CEO: Woncheol Park) has embarked in full swing on the construction of the world’s biggest PBAT (Polybutylene Adipate Terephthalate) production plant. 

On May 11 (local time), SK Leaveo held the PBAT plant groundbreaking ceremony in the special economic zone of Hai Phong City, Vietnam. The occasion was attended by SKC executives including SKC CEO Woncheol Park and SK Leaveo CEO Hojin Yang, the Ambassador of the ROK to Vietnam Youngsam Choi, and local government dignitaries including Tran Luu Quang, deputy prime minister of Vietnam, and Le Tien Chau, Secretary of the Hai Phong Party Committee.

SK Leaveo is a joint venture incorporated by SKC in partnership with food maker Daesang Corp. in 2022 to launch its high-strength PBAT material business. After adopting high-strength PBAT technology from the Korea Research Institute of Chemical Technology (KRICT) in 2020, SKC continued to upgrade the technology with persistent R&D efforts to prepare for commercialization. 

The PBAT production plant in Vietnam in which SK Leaveo is investing about 100 million dollars in the first phase will cover 22,389㎡ with an annual production capacity of 70,000 tons which will break the world’s record for a single plant. The plant is scheduled to go live in Q3, 2025 and SK Leaveo has already secured additional sites required for capacity expansion to lay down in advance the groundwork for global expansion. 

PBAT, known as the decaying plastic, replaces conventional plastics. When buried, gets decomposed naturally by microorganisms, thus contributing to reducing environmental challenges posted by wastes. Conventional PBAT is weak on durability, which limits its applications. Yet, SK Leaveo has developed high-strength PBAT with a proprietary technology utilizing nanocellulose as natural reinforcing agent, which expands its applications from agricultural films, packaging materials, containers to fiber, non-woven fabric, and so forth.

Hai Phong City that will be home to SK Leaveo’s PBAT plant is one of the top three cities in Vietnam including the capital city of Hanoi and Ho Chi Minh City in the south, known to be Vietnam’s top sea  port and crucial industrial city. In particular, the special economic zone of Hai Phong City where SKC’s biodegradable plastic production plant will be accommodated is touted for providing optimum port and logistics infrastructure.

The production plant will use raw material mixing and an ester polymerization processes to produce PBAT. In particular, the nanocellulose reinforcing agent and SKC’s over 40-year-long world-leading know-how will enhance process efficiency to reduce the required investment and lift up productivity. Furthermore, with the wholehearted support from the local government, the plant will satisfy the RE100 (Renewable Energy 100%) requirements, covering 100% of its energy load with only renewable energy sources.

Along with the production facility, SK Leaveo also vows to foster an eco-friendly biodegradable material industry ecosystem in Vietnam. To that end, SK Leaveo is partnering with An Phat Corp., Vietnam’s largest plastic manufacturer. An Phat will invest in SK Leaveo's Vietnamese subsidiary and sign a long-term PBAT purchase agreement to manufacture biodegradable plastic products bound for major markets around the world. 

“Plastic is an indispensable material for modern society, but evokes serious environmental issues,” said SKC CEO Woncheol Park. “The PBAT plant groundbreaking ceremony marks the beginning of SKC and SK Leaveo’s far-seeing dream of resolving the plastic crisis and fostering a sustainable economy.” [End]

[SKC CEO Woncheol Park (fourth from the left), Tran Luu Quang, deputy prime minister of Viet Nam (fifth from the left), and other executive officials press the groundbreaking button at the groundbreaking ceremony of SK Leaveo’s biodegradable plastic production plant held in the special economic zone of Hai Phong City, Vietnam on May 11 (local time).]