SK Leaveo breaks ground on a biodegradable material plant in Vietnam

SK Leaveo held a groundbreaking ceremony for its PBAT (Polybutylene Adipate Terephthalate) plant in the special economic zone of Hai Phong City, Vietnam, the world’s biggest PBAT production plant.

The groundbreaking ceremony was attended by management team from SKC and SK Leaveo, as well as local government officials.

SK Leaveo is a joint venture incorporated by SKC in partnership with food maker Daesang Corp. in 2022 to launch its high-strength PBAT material business.

With an investment of about US$100 million in the first phase, the PBAT plant will cover 22,389m2 with an annual production capacity of 70,000 tons, which will break the world’s record for a single plant.

The plant is scheduled to enter production in Q3, 2025. In addition, SK Leaveo has already secured additional sites required for capacity expansion to lay down in advance the groundwork for global expansion.

Proprietary technology for high-strength PBAT

PBAT, known as the decaying plastic, can be decomposed naturally by microorganisms when buried, thus contributing to reducing environmental challenges posted by wastes. However, conventional PBAT is weak on durability, which limits its applications.

SK Leaveo has developed high-strength PBAT with a proprietary technology utilizing nanocellulose as natural reinforcing agent, which expands its applications from agricultural films, packaging materials, containers to fiber, non-woven fabric, and more.

The production plant will use raw material mixing and an ester polymerization processes to produce PBAT. In particular, the nanocellulose reinforcing agent and SKC’s over 40-year-long world-leading know-how will enhance process efficiency and boost productivity.

Furthermore, with support from the local government, the plant will satisfy the RE100 (Renewable Energy 100%) requirements, covering 100% of its energy load with only renewable energy sources.

SK Leaveo also aims to foster the biodegradable material industry ecosystem in Vietnam. An Phat, Vietnam’s largest plastic manufacturer, will invest in SK Leaveo's Vietnamese subsidiary and sign a long-term PBAT purchase agreement to manufacture biodegradable plastic products bound for major markets around the world.