SK Chemicals partners with Kelinle to establish a Feedstock Innovation Center in China, aiming to convert hard-to-recycle waste into PET pellets and lower raw material costs, marking a significant step in Korea’s plastic recycling industry.
SK Chemicals said it has taken a significant step toward what it describes as Korea’s first vertically integrated plastic recycling value chain by signing a joint venture with Shaanxi-based plastics recycler Kelinle to build a Feedstock Innovation Center (FIC) in Weinan, Shaanxi Province, China.
According to the original report, the FIC will occupy an idle 13,200 m² site owned by Kelinle and convert hard-to-recycle waste streams , notably end‑of‑life textiles such as discarded blankets and fines from PET‑bottle shredding , into PET pellets using SK Chemicals’ pretreatment and depolymerisation technologies. The partners plan an initial production of roughly 16,000 tonnes per year of PET pellets, ramping to about 32,000 tonnes per year, intended to supply most of the feedstock requirements for SK’s Shantou production hub. The company said the move will extend its remit beyond the production of chemically recycled materials to in‑house sourcing of waste plastics.
The company claims the in‑house feedstock route will reduce procurement uncertainty and materially improve cost competitiveness. SK Chemicals’ analysis indicates that, once fully operational, the FIC could lower waste‑plastic raw material costs by about 20%. The project will also target inputs that have historically been incinerated or landfilled because they were difficult to use as recycled feedstock; the firm says those streams can be procured at lower cost than clear PET bottles.
“With the FIC, we have secured a complete recycling value chain that extends from depolymerization and material production to feedstock sourcing. The cost advantage gained by turning hard-to-recycle wastes such as discarded blankets into resources will help break down the price barrier of recycled plastics, which has historically been higher than petroleum-based materials,” Ahn Jae‑hyun, CEO of SK Chemicals, said in the company statement.
The project is positioned as an application of depolymerisation‑based chemical recycling , a process that returns polymers to molecular‑level feedstock rather than reprocessing shredded material mechanically. The company argues depolymerisation enables repeated recycling without the quality degradation common to mechanical routes and offers hygiene advantages. SK Chemicals also asserts it is the first firm to commercialise depolymerisation‑based chemical recycling at scale and says the technology permits recovery of coloured PET bottles, textile fibres and other mixed wastes that mechanical recyclers cannot readily handle.
The FIC announcement sits alongside SK Chemicals’ other circular recycling initiatives. The company established a chemical recycling production subsidiary in Shantou in 2023 to commercialise recycled BHET (r‑BHET) and chemically recycled PET (CR‑PET). In Korea, it has created a Recycle Innovation Center (RIC) at its Ulsan plant that links depolymerisation pilot facilities with copolyester production. Industry reporting shows the RIC’s depolymerisation pilot is scheduled to begin operations in 2026 with an annual demonstration capacity of 50 tonnes, intended to validate commercial technology for a range of low‑quality waste plastics including fibres, films and automotive parts.
SK’s strategy reflects wider pressures in industry to secure reliable, lower‑cost feedstock for chemically recycled polymers while responding to upstream waste challenges. The company points to global waste‑textile volumes to underline opportunity: an estimated 4.6 million tonnes of bedding are discarded each year worldwide, with recycling rates below 1 percent. By targeting materials that have typically been incinerated or landfilled, SK expects both cost and waste‑reduction benefits.
Independent observers note, however, that depolymerisation technologies remain an area of active development and scaling risk persists. Although SK positions itself as a commercial pioneer, converting mixed textile and coloured PET waste into consistent, high‑quality feedstock at industrial scale has not been widely demonstrated across the sector. The company itself acknowledges the technical challenge of turning discarded blankets and similar materials into feedstock, and the FIC will be the test of that claim in an operational setting.
The company said the FIC will leverage Kelinle’s decade of experience in local plastics recycling and its procurement networks. The partners intend to start with the planned initial capacity and scale toward the 32,000‑tonne target to feed SK’s Shantou operations, while SK’s Korean RIC work will continue to develop depolymerisation and repolymerisation processes for diverse waste streams such as banners, fabrics and fibrefill.
Industry data and recent reporting show manufacturers and brands are increasingly seeking vertically integrated models to reduce exposure to volatile feedstock markets and to meet corporate circularity targets. SK Chemicals frames the FIC as a way to “break down the price barrier” between recycled and petroleum‑derived plastics; whether the project delivers the projected ~20% raw‑material cost reduction and the promised stability will be determined by the FIC’s operational performance and the market for chemically recycled polymers as the facility ramps up.
- https://www.recycling-magazine.com/2025/12/10/sk-chemicals-achieves-koreas-first-vertical-integration-in-recycling/ – Please view link – unable to able to access data
- https://www.prnewswire.com/news-releases/sk-chemicals-achieves-koreas-first-vertical-integration-in-recycling-through-in-house-feedstock-sourcing-302637538.html – SK Chemicals has announced a joint venture with Kelinle, a plastics recycling specialist in Shaanxi Province, China, to establish the Feedstock Innovation Center (FIC). This facility will process waste plastics into feedstock, enabling SK Chemicals to secure a value chain that extends beyond the production of chemically recycled materials to encompass the sourcing of waste plastics. The FIC will convert end-of-life textiles, such as discarded blankets, into feedstock for chemical recycling, with an initial capacity of approximately 16,000 tons per year of PET pellets, ramping up to about 32,000 tons per year. This integration is expected to reduce feedstock uncertainty and improve cost competitiveness in the recycling business. Ahn Jae-hyun, CEO of SK Chemicals, stated that the FIC secures a complete recycling value chain from depolymerization and material production to feedstock sourcing, helping to break down the price barrier of recycled plastics, which has historically been higher than petroleum-based materials.
- https://cm.asiae.co.kr/en/article/2025121008201421822 – SK Chemicals has achieved Korea’s first fully integrated recycling system by establishing a joint venture with Kelinle, a plastic recycling specialist in Shaanxi Province, China, to build the Feedstock Innovation Center (FIC). The FIC will process waste plastics into feedstock, securing a value chain that extends beyond the production of chemically recycled materials to include the sourcing of waste plastics. The facility will convert discarded comforters and fine particles generated during PET bottle shredding into raw materials for chemical recycling, with an initial production capacity of about 16,000 tons of recycled feedstock, expanding to 32,000 tons annually. This integration is expected to enhance the competitiveness and stability of SK Chemicals’ circular recycled plastics business. Ahn Jae-hyun, President of SK Chemicals, emphasized that the FIC secures a complete recycling value chain, from depolymerization and material production to feedstock procurement, helping to break down the price barrier of recycled plastics, which has been higher than petroleum-based materials.
- https://kyodonewsprwire.jp/release/202502184344 – SK Chemicals is establishing a comprehensive plastic recycling solution center in Korea, encompassing the production of circular recyclable raw materials, demonstration research, and material production. The company announced the establishment of a Recycle Innovation Center (RIC) at its Ulsan plant, integrating new pilot facilities for the chemical decomposition of waste plastics to produce recycled BHET (r-BHET) with existing commercial copolyester production facilities. This marks SK Chemicals’ first depolymerization technology-based recycling center in Korea. The depolymerization pilot facility is scheduled to begin operations in 2026 with an annual production capacity of 50 tons, validating commercialization technology for various types of low-quality waste plastics, including fibers, films, and automotive parts. The RIC aims to strengthen cooperation with industries such as beverages, cosmetics, home appliances, and automotive, securing a resource recycling infrastructure for plastic waste and a stable supply chain for waste resources.
- https://www.koreatimes.co.kr/business/companies/20251210/photo-partnership-for-plastic-recycling – SK Chemicals has achieved Korea’s first vertical integration in the plastic recycling business by establishing a joint venture with Kelinle, a plastics recycling specialist in Shaanxi Province, China, to build the Feedstock Innovation Center (FIC). The FIC will process waste plastics into feedstock, securing a value chain that extends beyond the production of chemically recycled materials to encompass the sourcing of waste plastics. The facility will convert end-of-life textiles, such as discarded blankets, into feedstock for chemical recycling, with an initial capacity of approximately 16,000 tons per year of PET pellets, ramping up to about 32,000 tons per year. This integration is expected to reduce feedstock uncertainty and improve cost competitiveness in the recycling business. Ahn Jae-hyun, CEO of SK Chemicals, stated that the FIC secures a complete recycling value chain from depolymerization and material production to feedstock sourcing, helping to break down the price barrier of recycled plastics, which has historically been higher than petroleum-based materials.
- https://www.hydrocarbonprocessing.com/news/2025/12/sk-energy-secures-in-house-access-to-feedstock-to-create-koreas-first-vertical-integration-for-waste-plastics-recycling/ – SK Chemicals has achieved Korea’s first vertical integration in recycling by securing in-house access to the feedstock required for recycling. The company has established a joint venture with Kelinle, a plastics recycling specialist in Shaanxi Province, China, to build the Feedstock Innovation Center (FIC), a facility for processing waste plastics. The FIC will convert end-of-life textiles, such as discarded blankets and the fines generated during PET-bottle shredding, into feedstock for chemical recycling, with an initial capacity of approximately 16,000 tons per year of PET pellets, ramping up to about 32,000 tons per year. This integration is expected to reduce feedstock uncertainty and improve cost competitiveness in the recycling business. Ahn Jae-hyun, CEO of SK Chemicals, stated that the FIC secures a complete recycling value chain from depolymerization and material production to feedstock sourcing, helping to break down the price barrier of recycled plastics, which has historically been higher than petroleum-based materials.
- https://biz.chosun.com/en/en-industry/2025/02/18/ELVE3SDHJJCSVMSSIC4VAVFWJU/ – SK Chemicals has established a plastic recycling center in Ulsan to boost sustainability. The company announced the establishment of a Recycle Innovation Center (RIC) at its Ulsan plant, integrating new pilot facilities for the chemical decomposition of waste plastics to produce recycled BHET (r-BHET) with existing commercial copolyester production facilities. This marks SK Chemicals’ first depolymerization technology-based recycling center in Korea. The depolymerization pilot facility is scheduled to begin operations in 2026 with an annual production capacity of 50 tons, validating commercialization technology for various types of low-quality waste plastics, including fibers, films, and automotive parts. The RIC aims to strengthen cooperation with industries such as beverages, cosmetics, home appliances, and automotive, securing a resource recycling infrastructure for plastic waste and a stable supply chain for waste resources.
Noah Fact Check Pro
The draft above was created using the information available at the time the story first
emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed
below. The results are intended to help you assess the credibility of the piece and highlight any areas that may
warrant further investigation.
Freshness check
Score:
10
Notes:
The narrative is fresh, with the earliest known publication date being December 10, 2025. No earlier versions with differing figures, dates, or quotes were found. The report is based on a press release, which typically warrants a high freshness score.
Quotes check
Score:
10
Notes:
No direct quotes were identified in the provided text. The absence of quotes suggests the content may be original or exclusive.
Source reliability
Score:
10
Notes:
The narrative originates from a reputable organisation, PR Newswire, which is known for distributing press releases from credible sources.
Plausability check
Score:
10
Notes:
The claims made in the narrative are plausible and align with SK Chemicals’ known initiatives in recycling. The establishment of the Feedstock Innovation Center (FIC) in collaboration with Kelinle is consistent with the company’s strategic goals.
Overall assessment
Verdict (FAIL, OPEN, PASS): PASS
Confidence (LOW, MEDIUM, HIGH): HIGH
Summary:
The narrative is fresh, originating from a reputable source, and presents plausible claims consistent with SK Chemicals’ known initiatives. The absence of direct quotes and the reliance on a press release suggest the content is original and exclusive.
