LG Chem Ltd. (Seoul, South Korea) announced that it entered a memorandum of understanding (MOU) related to the production of Eco-friendly Biodegradable Materials and business cooperation with TK Chemical, a subsidiary of the Samla Midas (SM) Group.
The MOU specifically deals with the production of biodegradable Poly Butylene Adipate-co-Terephthalate (PBAT). PBAT is a petroleum-based synthetic plastic that degrades quickly through the reaction with oxygen, heat, light, and enzymes in nature.
As an eco-friendly material that can decompose naturally within six months when buried underground, PBAT is applied in various materials such as agricultural vinyl, disposable envelopes and more.
TK Chemical is a Korean company specializing in chemical fibers and manufactures polyester (PET), PET-Chip, and spandex. PET is at the core of the company’s business and TK Chem is currently leading the domestic market based on differentiated quality.
The two companies plan to sign the main contract within the year and establish a PBAT production line and begin production by the second half of 2022.
TK Chemical has a plan in place to begin construction of a PBAT line based on its stable polyester (PET) facility operation capacities and know-hows.
Through this MOU, LG Chem will not only expand its eco-friendly product portfolio, but also accelerate launching of PBAT products through strategic investments to enter the market early on.
LG Chem announced last month that it will start construction of a PBAT plant with an annual production capacity of 50,000 tons within the year and begin full-scaled mass production from 2024.
The two companies will continue discussing expanded cooperation plans for not only establishing a mass production system for eco-friendly biodegradable materials such as marine biodegradable materials (PBSAT) that LG Chem is currently developing, but also across the entire eco-friendly materials industry.