SK geo centric (“SKGC”), a South Korean-based global leader in polypropylene (“PP”) production, and PureCycle Technologies, Inc. (NASDAQ: PCT) (“PureCycle”) signed a joint venture agreement (“JVA”) to operate the first Polypropylene recycling plant in Asia. SKGC will make a joint investment with PureCycle to build a plastic recycling plant in Ulsan, South Korea with an annual capacity of up to 60,000 tons. The plant is currently expected to be completed by the second quarter of 2025.
Each company will have 50/50 ownership of the joint venture. SKGC will bring marketing capabilities related to market development, strategy, and sales to the venture while PureCycle will provide their patented purification recycling technology / IP and contribute technical capabilities.
With the JVA signed, SKGC and PureCycle will move forward with plans to open the facility by 2025. PureCycle has also agreed to provide SKGC with certain first rights to participate with PureCycle should PureCycle pursue expansion in the Asian region. This agreement is expected to expand SKGC’s global market reach.