SKC, a South Korean chemicals and materials manufacturer, on May 11 commenced construction on a $100 million plant in Vietnam to produce biodegradable plastics.

The facility, located in the Đình Vũ Industrial Park in the port city of Hải Phòng, is the company's first direct investment in the country.

A Strategic Move Towards Sustainability

The plant, operated by SKC's subsidiary Ecovance, will manufacture two types of biodegradable plastics: PBAT and PBS. These materials decompose naturally, offering a more sustainable alternative to traditional plastics that contribute to environmental pollution.

With an annual production capacity of 70,000 tons of PBAT and 59,500 tons of PBS, the facility is expected to meet the growing demand for eco-friendly materials in Vietnam and Southeast Asia.

Government Support and Investment Incentives

The groundbreaking ceremony, held on May 11, was attended by high-ranking Vietnamese officials, including Deputy Prime Minister Trần Lưu Quang and representatives from the Ministry of Science and Technology.

The project has received strong support from the Hải Phòng government, which sees it as a significant step towards attracting foreign investment in high-tech and environmentally friendly industries.

Lê Anh Quân, Deputy Chairman of the Hải Phòng People's Committee, emphasized the city's commitment to sustainable development and its efforts to attract investments that align with this goal.

He assured SKC of the city's full support in ensuring the project's timely completion and adherence to legal regulations.

Expanding SKC's Footprint in Vietnam

The Ecovance plant is not just an isolated investment. It represents SKC's broader strategy to expand its presence in Vietnam. The company, which specializes in secondary batteries, semiconductors, and eco-friendly materials, sees Vietnam as a key market with immense potential for growth.

The project is also expected to attract ancillary businesses and suppliers to Hải Phòng, further boosting the local economy. SKC plans to invest an additional $400 million in the plant by 2030, bringing the total investment to $500 million.

A Boost for Vietnam's Green Economy

The Ecovance plant is a welcome addition to Vietnam's burgeoning green economy. The country has been actively promoting sustainable development and seeking to reduce its reliance on fossil fuels and traditional plastics.

The government has set ambitious targets for renewable energy and waste reduction, and is offering incentives to businesses that invest in green technologies.

SKC's investment is a testament to the growing confidence of foreign investors in Vietnam's economic prospects and its commitment to sustainability.

The plant is expected to create jobs, stimulate economic activity, and contribute to the country's efforts to build a greener and more sustainable future.

The Ecovance plant is scheduled to be completed in June 2025, with trial operations starting in July and full commercial production commencing in September of the same year.

As the plant ramps up production, it will be interesting to see how SKC leverages its presence in Vietnam to further expand its business in Southeast Asia.

The company's success in this endeavor could pave the way for more foreign investment in Vietnam's green economy, contributing to the country's sustainable development goals and positioning it as a regional leader in eco-friendly materials.