By Kim Seung-yeon
ULSAN, Sept. 15 (Yonhap) — SK Group is planning to allocate 8 trillion won (US$6.02 billion) to revamp its main refinery and chemical complex in the southeast of the country into an eco-friendly business, its chairman has declared.
Chey Tae-won, the leader of SK Group, reaffirmed the company’s commitment to transitioning its key energy segments that are based on fossil fuels to green energy.
“When all SK affiliates are taken into account, 8 trillion won have been set aside for Ulsan for energy transition purposes,” Chey told reporters at the sidelines of the Ulsan Forum on Thursday.
The yearly Ulsan Forum, held in the coastal city of the same name, was initially launched last year by SK to explore ways to encourage sustainable regional growth.
Ulsan, a major industrial city in South Korea, is home to SK’s main refinery and chemical cluster, the Ulsan CLX, which contributes a significant portion to the regional economy.
SK Geocentric Co., the chemical unit of the second-largest conglomerate in the nation, is constructing a large plastic recycling plant in the same complex as part of the decarbonization plans.
“Cutting down on carbon emissions is the most urgent matter due to climate change,” Chey said. “Our goal is to achieve 100 percent plastic recycling, and I think we are taking the first step towards that.”
“We are continuing to make green investments,” he added.
The chairman also highlighted the necessity of hastening digitalization in the manufacturing industry as a way to maintain its competitive edge in the face of tougher price competition from nations such as China.
“I think we will experience more competition with our neighboring countries, particularly China. … If China continues to pressure us with lower prices, we can lose the market,” Chey said.
“To increase our competitiveness, we need to keep looking for the most efficient ways to reduce cost, and that is why digitalization is the most important.”
SK Group Chairman Chey Tae-won (2nd from L) speaks during the Ulsan Forum, a conference organized by SK and the city of Ulsan to promote regional growth, in this photo provided by SK Innovation Co. on Sept. 14, 2023. (PHOTO NOT FOR SALE) (Yonhap)
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