SK Chemicals is set to redefine Korea’s recycling industry through the launch of the Feedstock Innovation Center (FIC) in China—a facility designed to secure internal feedstock for chemical recycling and reduce dependence on fluctuating global waste markets. The announcement follows the signing of a joint venture agreement with Kelinle, one of China’s most experienced PET recyclers.
Under the partnership, the FIC will be constructed on a landbank owned by Kelinle in Shaanxi Province. The center aims to process a wide array of waste plastics—including degraded textiles, rejected PET fractions, and post-consumer fiber products—into PET pellets that can be used in SK Chemicals’ depolymerization-based chemical recycling system.
The FIC differs from conventional recyclers, which tend to rely heavily on clear PET bottles sourced from consumer waste streams. Such reliance often exposes companies to intense competition and unstable pricing, especially as global regulations push brands toward increased recycled-content requirements. In contrast, the FIC will focus on waste streams that currently lack recycling solutions, providing SK Chemicals with both cost advantages and stable supply.
Once operational, the center will begin production at 16,000 tons annually before expanding to 32,000 tons. This output will supply the majority of feedstock needed by SK Shantou, the company’s chemical recycling subsidiary capable of producing high-purity recycled monomers and polymers.
Chemical recycling via depolymerization allows plastics to be broken down into their basic molecular building blocks, enabling infinite recyclability without material degradation. This capability positions SK Chemicals at the forefront of the global shift toward high-quality recycled materials suitable for food-grade and sensitive applications—segments where mechanical recycling falls short due to contamination risks.
According to SK Chemicals, securing internal feedstock through the FIC will reduce raw material costs by about 20% while insulating the company from sudden supply shocks caused by disruptions in waste-collection systems. The move also aligns with sustainability goals, diverting millions of tons of textile waste away from landfills and incinerators.
CEO Ahn Jae-hyun noted that the FIC is a major step toward completing SK Chemicals’ vision of a fully circular, self-sufficient recycling ecosystem. The company plans to continue expanding its technological capabilities, supported by facilities such as the Recycle Innovation Center in Ulsan and the Shantou recycling plant in China.