South Korea’s SK Chemicals Co. has invested 23 billion won ($20.22 million) in China’s Shuye to become the first to commercialize chemically recycled PETG, a key compound used to make beverage, cosmetics and medical packaging.

SK Chemicals announced Monday that it has invested 23 billion won in Shuye, a Chinese company with technology to chemically break down waste polyethylene terephthalate (PET), to acquire a 10 percent stake.

The deal gives SK Chemicals the right to an offtake supply of 20,000 tons of recycled PETG raw materials.

PETG, or polyethylene terephthalate glycol, is an eco-friendly plastic derived from polyester. It is entirely recyclable and biodegradable without creating harmful gases. It offers the same transparency as glass but greater durability, hence it is widely used in medical protective visors or disposable containers for cosmetics and disinfectants.

Only two companies in the world—U.S.-based Eastman and SK Chemicals—have the technological prowess to manufacture PETG.

Shuye has the technology to disassemble plastic waste chemically, rather than physically shredding it, enabling to reuse plastics without harming their quality, SK Chemicals explained.

The Korean company plans to roll out its PETG brand “ECOTRIA CR” in the third quarter, which will bolster its eco-friendly packaging materials lineup, while aiming to expand the ratio of recycled product sales to 50 percent by 2025.

SK Chemicals will complete expanding its PETG production line by the end of June, it said.

By Won Ho-sup and Lee Soo-min

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