[Gettyimages Bank]
Ethylene Acrylic Acid copolymer is the key adhesive material in flexible packaging such as laminated tubes, packaging for meat and cheese, and coating for metals, cords, and wires. Currently, the important material for people's everyday lives is produced by about four global chemical companies.
SK geo centric said that the company signed an additional agreement with China's Satellite Chemical to build another EAA plant in China through a 400-billion-won ($395.9 million) investment. SK geo centric's fourth factory will be constructed by 2028. Through the completion of China's factories, the South Korean chemical company will have an annual EAA production capacity of 140,000 tons.
The factories in China will play the role of SK geo centric's bridgehead into the Asian EAA market. The company acquired the EAA business division from Dow Chemical Company in 2017.
"We hope to preemptively counteract global demands through the additional factory construction agreement. We will try to expand our high-value product portfolio while gaining competitiveness in the global high-value chemical material production market," SK geo centric's CEO Nah Kyung-soo said in a statement on March 24.
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