SK Global Chemical form a joint venture with Chinese chemical firm STL that will manufacture and sell ethylene acrylic acid (EAA) used in environmentally friendly packaging.
A total of 200 billion won will be spent on the joint venture. SK Global Chemical will hold around 60% stake and STL 40%.
SK Global Chemical, a subsidiary of SK Innovation, will provide production technology and sales channels. STL will be supplying the raw materials.
The factory will be built at Lianyungang city, which is forming its own environmentally friendly chemical industry complex. This will allow the joint venture to procure ethylene within the complex.
SK Global Chemical bought Dow Chemical’s EAA business in 2017. At the time, the company said it plans to expand in China and other emerging economies in Asia.
Its joint venture with STL is its third EAA factory __ it has built one in Texas and another at Tarragona, Spain.
Demand for EAA is expected to grow going forward from rising demand for environmentally friendly chemical product after the COVID-19 pandemic.