LOTTE Chemical and Yuhan Kimberly Constructs Resource Circulating Economic

Cooperation Model Using Regenerated Materials Applying Eco-friendly Technologies

■ LOTTE Chemical and Yuhan Kimberly enters MOU on material innovation for sustainable product development on 12th

■ Strengthening ESG management by constructing cooperation model of supplying LOTTE Chemical’s regenerated materials and

   using this for Yuhan Kimberly’s eco-friendly product manufacturing

■ Reviewing cooperation for manufacturing regenerated material protective clothing... Aiming at collecting discarded protective clothing

    to produce regenerated resin (PP) through physical and chemical recycling using LOTTE Chemical’s technology to manufacture and wear

    Yuhan Kimberly’s regenerated protective clothes

■ LOTTE Chemical Basic Materials President Hwang Jin-koo, “Construction of a circulating economic cooperation model of material

    and products is essential for a sustainable future... Plans to produce over 1 million tons of products annually by 2030 by expanding

    the recycled and bio plastic businesses as partners for the circulating economy”

LOTTE Chemical and Yuhan Kimberly joined forces to expand eco-friendly products and to build a circular economy.

On the 13th, it was announced that LOTTE Chemical Basic Materials President Hwang Jin-koo, Yuhan Kimberly CEO Jin Jae Seung, and others met in the afternoon of the 12th to sign the ‘MOU on Materials Innovation for Sustainable Product Development’, otherwise called the ‘Green Action Alliance’. 

Through this MOU, the two companies plan to accelerate climate change response and implementation of ESG management through technological innovation cooperation such as ▲recognizing the importance of developing sustainable materials and application in products, ▲development and stable supply of eco-friendly materials (bio and recycled), ▲development and expanded market of products using eco-friendly materials, ▲and recycling waste plastics. 

LOTTE Chemical and Yuhan Kimberly plans to construct a strategic resource circulating system using each of their materials technologies and production capabilities. This will be carried out by LOTTE Chemical developing and supplying eco-friendly regenerated materials and Yuhan Kimberly manufacturing products that apply this. 

As part of cooperation, the two companies are looking into a cooperation model for recycling protective clothes using PP (polypropylene) materials manufactured by Yuhan Kimberly. Considering the fact that protective clothes are normally incinerated after use, the waste protective clothes will be collected, separated and recycled for which LOTTE Chemical will turn into resources as regenerated resin (PP), and Yuhan Kimberly will use this to produce regenerated material protective clothes and supply it to its employees and partners.

LOTTE Chemical Basic Materials President Hwang Jin-koo commented, “Construction of a circulating economic cooperation model of materials and products is essential for a sustainable future,” and added, “Plans are to produce over 1 million tons of recycled plastic products annually by 2030 by expanding the recycled and bio plastic businesses as partners for the circulating economy.” 

LOTTE Chemical has been engaged in “Project LOOP” to make improvements to the waste plastic recycling and collection culture since 2020. In order to build an eco-friendly ecosystem where plastics circulate, LOTTE Chemical has been implementing the three major strategies of “Project LOOP” with “LOOP LOTTE” to cooperate in constructing a waste plastic recycling system with group subsidiaries, “LOOP Cluster” for expanding resource circulation activity bases to companies, local governments, and public and private facilities, and “LOOP Social” that searches for social ventures and pursues commercialization in the eco-friendly/resource circulation sector. 

<Three Project LOOP Strategies of LOTTE Chemical>

Based on pilot projects and activities over the past two years, LOTTE Chemical is strengthening cooperation with customers, partners, and social ventures for applying products with recycled plastic materials, and in addition to PET, it is expanding recycling materials businesses to PE, PP, ABS, etc. Furthermore, it will invest 100 billion KRW by 2024 at Ulsan Plant 2 to newly build a chemically recycled PET (C-rPET) production line with a scale of 110,000 tons. LOTTE Chemical plans to continuously develop strategic building activities for establishing a circular economy, while creating social value and reinforcing eco-friendly businesses.