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SK Chemicals, China’s Kelinle Form JV to Build Feedstock Center in Shaanxi

The venture gives SK Chemicals a direct feedstock source to stabilize supply, lowering costs in its chemical recycling push.

Overview

  • The partners will build a Feedstock Innovation Center on a roughly 13,000-square-meter Kelinle site in Weinan, Shaanxi, to convert waste plastics into chemical-recycling feedstock.
  • Operations are slated for the second half of 2026 with an initial capacity of about 16,000 metric tons per year, with plans to ramp to roughly 32,000 tons.
  • Output is intended to supply most of the raw materials for SK Shantou in Guangdong under the company’s staged expansion plan.
  • The facility will process hard-to-recycle inputs such as discarded textiles, fiberfill, and fines from PET-bottle shredding for use in SK’s depolymerization-based recycling.
  • SK Chemicals says this will make it Korea’s first chemical recycler with an in-house waste-plastics sourcing base and projects greater supply stability and up to about 20% lower raw-material costs once fully running.