SK Chemicals [298130:KS], SK Group’s [034730:KS] subsidiary, plans to invest more than KRW2tr (USD1.6bn) in eco-friendly material and biopharmaceutical businesses, as reported by the Korean Economic Daily on March 28. SK Chemicals will use the proceeds for establishing production infrastructure for green material and bio businesses. With such massive investment, the company plans to transform its oil-based plastic business into a recycled plastic one and expand its biopharmaceutical business. By 2025, the company aims for a sales volume of KRW1.6tr (USD1.32bn) from the eco-friendly material business, KRW1tr (USD826.57m) from the bio sector, KRW1tr (USD826.57m) from the biodegradable business, and KRW200bn (USD165.31m) from its existing functional material business.

SK Chemicals plans to replace copolyester’s raw materials with 50% recycled plastic by 2025 and 100% by 2030. As a plastic material mainly used in cosmetic containers, copolyester makes up 60% of the firm’s sales. The company aims for an annual production capacity of 300,000 tons of copolyester by 2025 and 450,000 tons by 2030. In the biopharmaceutical area, the enterprise will expand its ethical drugs business, covering medicines for musculoskeletal disorders and nervous system diseases. In January 2022, SK Chemical received a comprehensive BBB rating in the Environmental, Social, and Governance (ESG) report by the Morgan Stanley Capital International (MSCI) [MSCI:US], rising by two notches from the 2020 ratings. In the ESG report, the company was credited with committing to a 50% reduction in greenhouse gas (GHG) emissions by 2030 and net zero emissions by 2050.

Sources:

https://www.kedglobal.com/corporate-strategy/newsView/ked202203280026

https://www.skchemicals.com/prcenter/new_view.aspx?serno=2972

http://koreabizwire.com/sk-chemicals-targets-50-pct-greenhouse-gas-emissions-reduction-by-2030/194321