CJ CheilJedang partnered with the nation’s top polymer compounds manufacturer, HDC Hyundai Engineering Plastics (HDC Hyundai EP), to diversify the white biotechnology industry.
※ Compounding : A production method that combines two or more industrial materials in optimum proportion, or designing the overall mixture process.
CJ CheilJedang concluded an MOU for Establishment of a Joint Bio Compounding Venture attended by the management from two companies, including CJ CheilJedang CEO Eun Seok Choi and HDC Hyundai EP CEO Joong Kyu Chung at Hyundai I-Park Tower, Seoul. The two companies plan to sign a formal contract and complete the set-up of a joint venture (JV) within the year.
▶ CJ CheilJedang CEO Eun Seok Choi (right) and HDC Hyundai EP CEO Joong Kyu Chung (left) signed an MOU for Establishment of a Joint Bio Compounding Venture.
The JV will first set out to develop compounding solutions using PHAs and cellulose, biodegradable plastic materials, and start mass production of bioplastic. The company’s main focus will be on replacing existing petrochemical resources or combining biodegradable materials and producing food packaging and automotive interior materials to deploy biotechnology material into sectors close to daily life.
In particular, the top microbial fermentation and refining technology of CJ CheilJedang combined with the environment-friendly material compounding capabilities of HDC Hyundai EP is anticipated to create immense business synergies. In addition to PHAs, CJ CheilJedang is expected to expand the scope of its white biotechnology business across the eco-friendly bioplastic industry and obtain mass production capacity.
▶ An overview and the scope of bioplastics, the current white bio business area of CJ CheilJedang
The demand for environment-friendly bioplastic material is rapidly growing with reinforced environmental regulations worldwide and increased consumer preference for green products. The two companies are planning to produce the globally-recognized products by focusing on acquiring and strengthening compounding competitiveness, which is the greatest importance in the bioplastic sector.
Eun Seok Choi, the CEO of CJ CheilJedang said, “The cooperation of the two companies is meaningful today when sustainable management has become a mandatory element rather than an optional element of a company, and when a circular economy for plastics has become a global goal. This will play a pivotal role in the environment-friendly material industry and in proactively reacting to the government policy to promote the white bio industry.”
Joong Kyu Chung, the CEO of HDC Hyundai EP said, “We are delighted to initiate the joint venture at this time to preserve the environment and build a society that can grow sustainably. If the two companies join hands as pioneer of new technologies and markets, it will create enormous synergies.”
CJ CheilJedang is a global leader in the biological market reaching annual sales of over KRW 3 trillion building on its microbial technology. In November last year, it entered the white bio market in earnest with PHAs, marine biodegradable plastics. The company is constructing a production line dedicated to PHAs capable of manufacturing 5,000 tons of PHAs annually in Pasuruan, Malaysia, slated to be completed by the end of the year. CJ CheilJedang will start joint biochemical ventures with diverse global companies to expand its business portfolio in the white bio sector.
HDC Hyundai EP is an affiliate of HDC, divided from the Oil and Chemical Division of Hyundai Industrial Development in 2000, and has led the growth of numerous industries, including automobile, electronics, construction, and daily necessities. Last year, it launched the bioplastic business, starting with the production of cellulose-based green biomaterials.