MOSCOW (MRC) -- Mura Technology (Mura), the UK-based plastics recycling technology pioneer, has completed an equity investment from LG Chem, a leading global chemical producer, according to Hydrocarbonprocessing.
The investment bolsters Mura’s plans to develop and deploy industrial-scale advanced recycling capacity across the world, with LG Chem joining the growing list of strategic partners adopting Mura’s technology.
In addition to becoming a shareholder in Mura, LG Chem has purchased a process license from KBR, Mura’s exclusive global licensing partner. This license will be a key driver in the continued international roll-out of Mura’s innovative recycling process, HydroPRT (Hydrothermal Plastic Recycling Technology), and LG Chem plans to construct a hydrothermal upgrading facility to initially recycle up to 25,000 tons of plastic waste annually.
Once the facility, which will be the first in South Korea to use supercritical water, is operational, LG Chem plans to review the potential for constructing additional sites. This will continue to drive Mura’s global impact following the recent announcement of its first US-based HydroPRT site near Seattle. Construction is already underway on Mura’s UK-based plant located in Teesside, which will be operational in 2022.
South Korea is one of the world’s leaders in plastic consumption per capita, and a crucial market for deploying HydroPRT. Post-use plastic from both the commercial and industrial sectors contributes significantly to increased levels of waste in South Korea, however capacity for recycling at scale remains low, particularly in high-traffic, urban areas, despite the country’s aim to reduce its plastic waste by 20% by 2025. Successful deployment of HydroPRT will dramatically increase the potential recycling capacity in South Korea and will also serve as a blueprint for other countries around the world with similarly ambitious waste reduction targets.
As MRC reported earlier, LG Chema, South Korean petrochemical major, reduced run rates at all of its three naphtha crackers in Deasan and Yeosu, South Korea to approximately 80% on 5 January, 2021, on the back of weak demand and highly volatile upstream naphtha costs. All three crackers with a combined capacity of 3.25 million tons of ethylene and 1.48 million tons of propylene would operate at reduced rates throughout the month of January. It is reported that the producer would ramp up the production in February, however, it is unclear on the exact schedule.
Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.
According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 2,265,290 tonnes in the first eleven months of 2021, up by 14% year on year. Shipments of all grades of ethylene polymers increased. At the same time, PP shipments to the Russian market were 1,363,850 tonnes in January-November, 2021, up by 25% year on year. Supply of homopolymer PP and block-copolymers of propylene (PP block copolymers) increased, whereas supply of injection moulding PP random copolymers decreased significantly.
LG Chem Ltd., often referred to as LG Chemical, is the largest Korean chemical company and is headquartered in Seoul, South Korea. It has eight domestic factories and global network of 29 business locations in 15 countries. LG Chem is a manufacturer, supplier, and exporter of petrochemical goods, IT&E Materials and Energy Solutions.