South Korean chemicals maker SKC Co. is set to launch the nation’s largest plastic waste pyrolysis oil project.

The company recently signed a memorandum of understanding (MOU) with the Ulsan city government to jointly carry out an eco-friendly chemical recycling project that aims to make industrial pyrolysis oil with plastic waste.

SKC and SK picglobal Co., an investor in SKC’s chemical business, will be responsible for investing in the establishment of an eco-friendly chemical recycling plant, while the city government will provide incentives and support in light of facility investment-related approval.

SK picglobal will invest about 100 billion won (US$91.7 million) to build the eco-friendly chemical recycling plant on a 50,000 square meter site near its Ulsan plant.

The plant will be capable of handling 60,000 tons of waste vinyl per year, and is expected to be the largest of its kind in Korea.

SK picglobal plans to complete the construction of the plant by 2023 in collaboration with foreign global partners with commercialization technology.

The new plant will churn out 35,000 tons of eco-friendly pyrolysis oil every year from plastic waste such as vinyl that cannot be recycled