November 28, 2024 – SK Geo Centric Halts Plastic Recycling Plant Project in France Amid Cost Concerns
In a surprising turn of events, SK Geo Centric, a subsidiary of Korean energy giant SK Innovation, has announced the decision to halt plans for a joint plastic recycling plant in France. The news has sparked widespread industry attention.
Originally, SK Geo Centric partnered with French waste management company Suez and Canadian technology firm Loop Industries to build an advanced plastic recycling facility in the Saint-Avold region of northeastern France. The project, unveiled in early 2023, boasted a total investment of 450 million euros. The planned recycling plant was designed to process 145,000 tons of waste plastic annually and produce up to 70,000 tons of recycled PET material using cutting-edge recycling technology. Construction was scheduled to commence in the first quarter of 2024, with completion and operation expected by 2027.
However, according to sources from the color masterbatch industry, the project’s progress has not been as smooth as anticipated. Earlier this month, Suez abruptly announced its withdrawal from purchasing the necessary land for the facility, casting a shadow over the project’s feasibility. Local media reports suggest that escalating costs have become a significant barrier to the project’s continuation. Under current market conditions, the cost of producing recycled PET has soared to over 2,000 euros per ton, more than double the market price of virgin PET, which is less than 1,000 euros per ton. This substantial cost difference has raised serious questions about the project’s commercial viability.
Despite this major setback, SK Geo Centric and its partners have not entirely abandoned their pursuit of PET recycling technology. They have expressed continued belief in the potential of innovative recycling solutions and remain committed to further research and development in this field. Observers also note that the suspension of this project not only reflects the current economic pressures and market dynamics posing severe challenges to the realization of sustainable recycling solutions but also serves as a reminder for the industry to more carefully consider cost and market factors when advancing similar projects.
Moving forward, how SK Geo Centric and its partners will adjust their strategies to navigate the current, and whether they can achieve new breakthroughs in PET recycling technology, will be key areas of focus for the industry.