SK Geocentric invests 200 billion KRW in high-performance chemical production with SABIC

▲Exterior view of Nexlen factory located in Gosadong, Nam-gu, Ulsan Metropolitan City

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[Asia Economy Reporter Oh Hyung-gil] SK Geocentric is jointly investing in high-performance chemical products with SABIC, a global chemical company from Saudi Arabia. This is to proactively respond to the rapidly increasing demand for high value-added eco-friendly materials such as those used in automobiles and solar energy.

SK Geocentric announced that its joint venture with SABIC, 'SABIC SK Nexlene Company (SSNC),' signed a memorandum of understanding (MOU) for new and expanded investment in a high value-added chemical product factory with Ulsan City at Ulsan Metropolitan City Hall on the 23rd.

SSNC will invest approximately 200 billion KRW by July 2024 through its domestic subsidiary Korea Nexlene on a 1,322㎡ site in Ulju-gun, Ulsan City, to build and expand a production plant for high-performance polyolefin elastomers (POE).

SSNC is a joint venture established by SK Geocentric and SABIC in 2015, and Korea Nexlene is a 100% subsidiary of SSNC. SSNC has invested a total of 605.1 billion KRW in Korea Nexlene to build a factory covering 68,100㎡ and produces 210,000 tons of Nexlene products annually.

With this investment, the annual production volume will increase by about 43% to 300,000 tons, and more than 90% of the production will be exported.

Nexlene is a high-performance product developed by SK Geocentric in 2010 using ethylene as a raw material. Compared to general polyethylene products, it has excellent hygiene, transparency, and strength, and offers an excellent density range, making secondary processing easy. Korea Nexlene produces high-performance products using Nexlene such as polyolefin elastomers, polyolefin plastomers, and linear low-density polyethylene.

Polyolefin elastomers have excellent elasticity and impact resistance, making them mainly used in lightweight automotive parts that enhance plastic properties. Compared to other products, they reduce power loss and are also used for manufacturing solar power generation films. Polyolefin plastomers have excellent sealing properties and high hygiene, making them suitable for medical and food packaging materials.

Kim Jong-il, CEO of Korea Nexlene, said, "We are pleased to start expansion investment to lead the global supply of high value-added products such as lightweight automotive materials and solar materials using our self-developed Nexlene products." He added, "We will do our best to ensure that the excellent product quality and eco-friendly benefits are recognized in the global market."

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