South Korean Petrochemical Producer SK Geo Centric will Construct a Recycled PET Plant in France in the Next 36 Months

At Saint-Avold, in northeastern France, South Korean petrochemical manufacturer SK Geo Centric will start construction on its recycled polyethylene terephthalate (PET) factory in 2025.

Construction on the plant, which has a 70,000 t/yr PET production capacity, is anticipated to be complete by 2027.

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The plant is a joint venture between Canadian recycling technology company Loop Industries, French environmental utility SUEZ, and SK Geo Centric. However, it is not clear which company actually holds the majority stake.

To create the facility, the three businesses collectively invested W620 billion (USD 480 million). The factory operates using the depolymerisation technology from Loop Industries, the petrochemical expertise of SK Geo Centric, and the waste resource management expertise of SUEZ.

The factory will largely use the rPET it produces for the packaging industry. Recycled materials are in more demand as a result of the EU's heightened attention to legislation pertaining to plastic waste and the circularity of plastic products.

The Saint-Avold Chemesis industrial platform is the ideal location for the manufacturing facility because it is strategically located in the centre of Europe and offers an effective industrial and infrastructure network (access to energy, particularly via existing heat networks, road and rail logistics, suppliers, etc.).

This initiative, with a planned investment of EUR 450 million, will help to sustainably revive the local industrial base and allow for the creation of 200 new employment directly.

With the use of minimal heat and no additional pressure, Loop's depolymerization process transforms low to no value feedstocks into the purest, highest-quality virgin PET plastic, diverting them from landfill or incineration.

When operating at full capacity, the facility may, in comparison to virgin PET resin produced from fossil fuels, save about 255, 000 tonnes of CO2 every year. SUEZ will gather, classify, and prepare the feedstock entry flows by utilising its understanding of the European plastics industry, its alliances with business partners, and its extensive treatment infrastructure network coverage.

This plant provides a solution to the problem of excessive plastic trash by utilising low-value garbage that is currently headed for landfill or incineration.

The initiative will be introduced to the public in the upcoming weeks through a local engagement process. The commissioning of the facility is scheduled for 2027, and the three partners hope to begin building work in early 2025.

The facility in Europe is part of the global commercialization strategy of Loop's technology. The first Infinite Loop manufacturing facility is anticipated to open in Ulsan, South Korea, in 2023, according to plans developed by SKGC and Loop.

The choice of France and the Saint-Avold chemical platform by SUEZ, Loop, and SKGC to establish their first European chemical plastics recycling facility was praised by Roland Lescure, France's minister of industry.

Due to France's highly decarbonized electricity mix, this ground-breaking technique will end the plastic loop by recycling packaging endlessly without sacrificing quality and with minimal CO2 emissions.

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This initiative demonstrates how businesses can help with the ecological transition by helping to create a circular economy that conserves resources and ensures France's supply of plastics. The construction of this facility in France demonstrates how the nation's climate ambition can be a driving force behind green reindustrialisation.

As per Procurement Resource, Saint-Avold, France-based petrochemical producer SK Geo Centric of South Korea will begin building its recycled polyethylene terephthalate (PET) factory in 2025. The 70,000 t/yr PET production capacity plant's construction is expected to be finished by 2027. The facility is a joint venture between the French environmental utility SUEZ, Canadian recycling technology company Loop Industries, and SK. Geo Centric.