SK Chemicals Launches China’s First Vertically Integrated Recycling Facility

SK Chemicals has partnered with China’s Kelinle to establish the Feedstock Innovation Center (FIC) in Shaanxi, China. The facility will convert hard-to-recycle plastics and textiles such as discarded blankets and PET-bottle fines into feedstock for chemical recycling.

The FIC will initially produce 16,000 tonnes of PET pellets annually, ramping up to 32,000 tonnes, securing a stable, cost-competitive supply for SK Shantou. This in-house sourcing is expected to reduce feedstock costs by 20% while enhancing circular recycling capabilities.

Ahn Jae-hyun said, “The FIC completes our recycling value chain, turning difficult wastes into resources and breaking the price barrier of recycled plastics.” SK Chemicals already operates a recycling hub in Shantou and the Recycle Innovation Center in Ulsan, solidifying its position as a global leader in depolymerization-based recycling.