South Korean company SK Chemicals has signed a US$98.4 million deal with China-based Shuye Environmental Technology to acquire its chemical recycling plant and polyethylene terephthalate (PET) production facility.

The acquired recycling plant uses depolymerization technology to chemically break down plastic waste into monomers and produces recycled bis-hydroxyethyl terephthalate (BHET), a key intermediary in the manufacturing of PET.

SK Chemicals now owns these assets as per the terms of the current contract. As a result, according to SK Chemicals, it now has the first production plant and commercially available polyester chemically recovered raw materials in the world, both of which can be purchased individually. Officials from SK Chemicals said in a statement that the agreement allows them to significantly outpace other local enterprises in this industry.

In order to address the fast-rising demand for recycled plastic garbage around the world, SK Chemicals further stated that, once it had verified its production technique, it planned to establish infrastructure in China and other nations, including those in Europe, North America, and beyond.

Ahn Jae-hyun, CEO of SK Chemicals, said that they will work to become a leading company in the worldwide recycled plastic industry by pursuing global expansion and advanced recycling business models.

The company also intends to offer the chemically recycled BHET to polyester producers who want to make recycled goods as a stand-alone commodity.

According to SK Chemicals' statement, the global market for recycled PET in 2022 will be around 9.7 million tons, with the majority of the material being mechanically recycled, according to a report from analyst Wood Mackenzie.