S.Korea’s SK Group begins work on $93mn biodegradable materials plant in Vietnam
Sunday, May 12, 2024, 10:45 GMT+7
The administration of Hai Phong City in northern Vietnam and Ecovane Vietnam Co. Ltd. under South Korea’s SK Group held a ground-breaking ceremony on Saturday for a hi-tech biodegradable materials plant project.
The ceremony was attended by Vietnamese Deputy Prime Minister Tran Luu Quang and many other senior government officials.
The facility will span an area of more than 32,000 square meters at Dinh Vu Industrial Park under Dinh Vu-Cat Hai Economic Zone, located in Hai An District.
It carries an initial price tag of VND2.377 trillion (US$93.3 million) and the figure is expected to top VND11.8 trillion ($466 million) by 2030.
It is slated for commercial operations in September 2025.
The plant is set to annually produce around 70,000 metric tons of polybutylene adipate terephthalate (PBAT), a biodegradable co-polymer widely used as feedstock for general plastics, and 59,500 metric tons of polybutylene succinate (PBS).
This is the first project by SK Group, which engages in manufacturing secondary battery materials, semiconductor materials, and other eco-friendly materials, in Vietnam.
The launch of the project is also part of the outcome of a business trip by the northern Vietnamese city’s Party chief Le Tien Chau to South Korea in mid-2023 for promoting investment.
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