SK Discovery : chemicals Steps Up Global Supply of Circular Recycling Materials... Participates in “China Beauty Expo”

- Showcasing 8 types of eco-friendly materials and cosmetic containers, strengthening cooperation with global brands

- Securing a recycling raw material factory in Shantou, China, and signing an MOU with COSMAX and Yonwoo... Expanding the global container market in China and other regions

SK chemicals, which owns the world's largest circular recycling1) raw materials and products factory, is set to make headway in the global cosmetic container market.

SK chemicals (CEO, Ahn Jae-hyun) announced on the 11th that it will participate in the "China Beauty Expo" to be held at the Shanghai Exhibition Center in China from the 12th to the 14th.

The "China Beauty Expo," Asia's largest beauty trade show, is being held after two years due to the pandemic. It is an event where global cosmetic brands, manufacturers, distributors, and related institutions participate to showcase the latest trends, technologies, and products. It is expected to attract over 390,000 visitors from 3,600 companies in 40 countries.

The Chinese market, which is leading global cosmetic consumption, is a hot topic in the cosmetic industry. According to Euromonitor, the Chinese cosmetics market was worth 572.6 billion yuan (approximately 109 trillion won) in 2021, with per capita cosmetic purchases amounting to only a quarter of the US, signifying its potential for high growth. Hence, fierce promotional competition among global cosmetic companies and local Chinese firms is expected at the expo.

SK chemicals, which leads the Chinese copolyester2) market, has set up an exhibition space at the expo to align with the recycling trend in the cosmetic packaging market. It showcases "sustainable plastic materials" that include recyclable raw materials or can be recycled into PET3) after use, and provides an experience of the "plastic circular economy."

Through this, SK chemicals introduces its core technology and materials for circular recycling, the application of these materials in cosmetic containers, and promotes materials optimized for eco-friendly cosmetic containers to global cosmetic brand representatives.

SK chemicals' sustainable materials consist of the "Ecotria CR" and "SKYPET CR" product lines that use copolyester and PET materials from circular recycling raw materials, the "Ecotria R" product line that uses post-consumer recycled (PCR), and the "Claro" product line that consumers can recycle into PET after use.

At this expo, SK chemicals is expected to draw significant attention from global packaging manufacturers and cosmetic brands as it unveils a new circular recycled copolyester that can replace styrene6)-based materials like ABS4) and SAN5), widely used in cosmetic containers, along with a coating material developed with domestic paint companies.

Amid strengthened plastic use regulations in the EU and US, global cosmetic brands are increasingly refraining from using styrene-based plastics. Starting January 1, 2025, France will ban the use of unrecyclable styrene-based plastics, and similar regulations are expected to be introduced and enforced globally.

Kim Eung-soo, Head of SK chemicals' Green Materials Business Division, stated, "We will do our best to capture the eco-friendly packaging market in line with the demand of global cosmetic companies," and added, "Through various technological developments, we plan to make sustainable materials a key component of premium cosmetic containers."

Meanwhile, SK chemicals established a subsidiary, SK Shantou, in March to take the lead in the recycled plastic market by acquiring the assets related to the circular recycling raw material and PET business of Shuye, China. The Company is also accelerating the expansion of the circular recycling materials market by collaborating with Yonwoo, a subsidiary of Kolmar Korea, and COSMAX, the world's leading ODM (Original Development Manufacturing) cosmetics company, to develop eco-friendly cosmetic containers.

# Photo description: Aerial view of the booth that SK chemicals will set up at the China Beauty Expo

[Glossary]

1) Circular Recycle: Refers to "Chemical Recycle." SK chemicals is pioneering a sustainable "circular recycling" material market, considering the infinite recyclability of chemically recycled materials as a key future business.

2) Copolyester: This is a material with excellent chemical resistance that does not deteriorate or discolor even when in contact with chemical ingredients and is transparent like glass even when thickened,

making it ideal for manufacturing high-end cosmetic containers. Materials include ECOZEN Claro, which uses bio-based raw materials, and ECOTRIA CR, which uses chemically recycled raw materials.

3) PET: It is a highly transparent thermoplastic resin using TPA and EG as raw materials. It accounts for most of the plastic beverage bottles sold on the market.

4) ABS (Acrylonitrile Butadiene Styrene, a high-functional synthetic resin): Primarily used in home appliances such as TVs, computers, rice cookers, and vacuum cleaners, as well as smartphones, tablet PCs, and automotive parts.

5) SAN (Styrene Acrylonitrile): Also known as AS, this transparent plastic material is mainly used for fan blades, stationery, and pen barrels.

6) Styrene: Also known as ethenylbenzene, vinylbenzene, and phenylethene, styrene is used in the production of latex, synthetic rubber, and other polystyrene resins.