Hai Phong starts constructing 2 trillion VND biodegradable materials production project

The groundbreaking ceremony for the ECOVANCE high-tech biodegradable materials production plant project of Ecovance Co. Ltd. was organized by the People's Committee of Hai Phong city in collaboration with Ecovance Vietnam Co., Ltd. on May 11, 2024.

The project, funded by Ecovance Vietnam Co., Ltd., is being carried out on a land area over 32,000 square meters in Dinh Vu Industrial Zone, Dong Hai 2 Ward, Hai An District, Hai Phong City. The entire investment capital for this project is over 2.3 trillion VND, which includes the investor's capital and external funding.

The project is projected to have a total investment capital exceeding 11.8 trillion dong by 2030. The investment project by SK Group in Vietnam marks their initial direct investment endeavor in the country. This initiative materialized during the visit of Hai Phong city authorities to South Korea in June 2023, when investment promotion activities took place.

The project is anticipated to be finished by June 2025, with trial operation beginning in July 2025, and full operation commencing in September 2025, after the groundbreaking. Once finished, the factory is expected to manufacture around 70,000 metric tons of PBAT biodegradable plastic products, approximately 60,000 metric tones of PBS biodegradable plastic products, and 6,300 metric tons of THF solvent products every year.

Mr. Le Anh Quan, the Permanent Vice Chairman of Hai Phong City People's Committee, emphasized that the project's objective is to manufacture PBAT and PBS biodegradable plastics. This effort is of great significance in the current era, where the problem of plastic waste pollution is a serious global concern. This technology mitigates environmental pollution, safeguards ecosystems, and paves the way for the plastics industry to transition into a sustainable and regenerative economy.

Hai Phong City consistently recognizes the necessity of linking economic growth with safeguarding the environment, viewing it as a crucial and ongoing responsibility in the course of socio-economic advancement. Hence, during the development phase, utmost importance is placed on attracting and focusing on investment ventures that employ cutting-edge and eco-friendly technologies, thereby aiding in the establishment of a robust foundation for an environmentally conscious Hai Phong.

This event is notable as it represents a major milestone in attracting international investment in high-tech industries and ecologically sustainable materials. Additionally, it serves to confirm the strong position and appealing investment climate of Hai Phong City both within the country and the region.

The implementation and completion of the factory's operation are anticipated to yield significant advantages for investors, enhance the value of industrial production and export goods in the city, generate additional employment opportunities and income for local workers, boost revenue for the state budget, and facilitate the socio-economic progress of the city.

During their address, SK Group representatives announced the commencement of a contemporary PBAT factory construction project in Hai Phong, to target the worldwide market for biodegradable materials. Once finished, it will become the largest individual factory globally, representing a unique instance where SK's cutting-edge technology is invested in a foreign country for the first time.

SK Group has plans to further invest in Vietnam and actively pursue the expansion of more plants. SKC will establish a partnership with South Korean universities to provide training for skilled engineers, in addition to depending on Vietnamese labor, to support the operation of advanced research facilities.

"Our goal is to become an exemplary company that actively contributes to the local community while ensuring zero environmental pollution. We are committed to transforming into an authentic Vietnamese enterprise, adored and accepted by the residents of Hai Phong and Vietnam," stated leaders from SK Group.