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Samyang Packaging Prioritizes ESG by Expanding Its Plastic Recycling Business Print
Writer administrator Hits 1547 2022.01.25

- KRW 43 billion investment in recycled-chip production facilities with an annual production capacity of 21,000 tons
- Waste PET bottles into PET chips as higher value-added material used for threads for clothes, PET bottles, etc.
- Annual waste plastic reduction by 45,000 tons with enhanced profitability based on ESG

 

▲Recycled-chips used as a raw material of threads for clothes, transparent PET bottles, etc. Samyang Packaging is expanding its plastic recycling business by installing recycled-chip production facilities with an annual production capacity of 21,000 tons.

 

Samyang Group is expanding its waste plastic recycling business to realize its eco-friendly growth strategy.

 

Samyang Packaging (CEO: Jo Dok-hee), Samyang Group’s affiliate engaged in beverage and packaging business, announced that it will invest approximately KRW 43 billion in installing waste plastic recycling facilities at Shihwa Plant for PET flake production and recycling business.

 

Samyang Packaging is newly installing two types of production facilities for high-purity PET flakes and recycled-chips. With the new facilities, Samyang Packaging’s Shihwa Plant has become a recycling plant that produces both high-purity PET flakes and recycled chips. Once the facilities are fully installed, Samyang Packaging can annually produce 21,000 tons of recycled chips which are a higher value-added material. In addition, it is predicted to greatly improve production and quality of PET flakes.

 

Samyang Packaging is planning to operate the facilities by late next year. It is expected to make annual sales of KRW 40 billion in recycling business once commercial production commences.

 

PET flakes are made by shredding waste PET containers into small fragments. In South Korea, PET flakes are generally used to produce staple fibers such as non-woven fabric and filling materials. Some high-purity flakes may be used to produce filaments, a raw material of clothes, chose, bags, etc. However, chips are more advantageous for producing higher value-added products. Staple fibers are short fibers like cotton, whereas filaments are fibers like long threads. Recycled chips are a small fragment material made by heating PET flakes with additional processes. Recycled chips have higher purity than PET flakes, so it can be processed as precise filaments and used to produce higher value-added products such as threads for clothes, food containers, and cosmetic containers.

 

An official from Samyang Packaging said, “We will enhance our profitability based on ESG by investing in waste plastic recycling technologies and relevant production facilities. Our recycling business is expected to reduce annual waste plastic generation by 45,000 tons.”

 

Samyang Packaging was the first in South Korea to start a waste plastic recycling business back in 1995. It produced colored flakes used for low value-added products such as disposable cups, non-woven fabrics, filling materials, industrial floor materials, etc. Samyang Packaging run the business for a long period of time, but had to stop in 2020 due to low profitability resulting from outdated facilities. Then, it focused on establishing facility improvement plans.

 

Samyang Packaging minimizes environmental impact based on its advanced technologies, producing plastic products essential to our daily lives, such as aseptic PET beverage containers and PET bottles. Through aseptic filling, the content of a beverage is put into a PET bottle at room temperature in an aseptic environment. With aseptic filling, PET bottles are 10 grams lighter than heat resistance bottles requiring high temperature pasteurization, which contributes to reducing plastics consumption. In addition, Samyang Packaging is contributing to increasing recycling efficiency by producing a variety of label-free PET bottles. Label-free PET bottles reduce waste and are convenient since labels don’t need to be removed for recycling.

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