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SK chemicals is strengthening its sustainability presence in the European automotive market by supplying recycled materials to leading global car manufacturers.

On June 25 (KST), SK chemicals (President & CEO Ahn Jae-hyun) announced it has signed an Exclusive Partnership Agreement with Durmont and Paarang. The agreement was formalized at the company’s ECOLAB headquarters in South Korea.

Durmont, an Austrian automotive carpet manufacturer, produces carpet roll goods for approximately 7 million vehicles annually. In 2023, Durmont was acquired by Visscher-Caravelle Group (VC) — a Dutch Tier1 supplier of Car Floor Mats and other automotive accessories with a market share of over 40% in the European market. VC supplies to several major European automotive brands.

Paarang will support SK chemicals and Durmont in facilitating smooth communication and operations. Leveraging its expertise in logistics and supply chain management, Paarang aims to enhance reliability and efficiency throughout the transaction process.

The three companies have already successfully developed yarns and finished products such as carpets and mats using SK chemicals’ differentiated CR (Chemical Recycled) PET material solution. These products meet automotive testing requirements and quality standards. The exclusive partnership agreement was signed to accelerate supply and market expansion.

Under the agreement, SK chemicals will supply Durmont with its recycled PET, SKYPET CR, which provides a material with 100% recycled content, certified by ISCC PLUS (International Sustainability and Carbon Certification PLUS), and a fully recyclable product. The joint aim is a wide market adoption of such sustainable material solutions.

SKYPET CR, making use of SK chemicals’ chemical recycling technology, enables waste plastics to be recycled at the molecular level and maintains high quality even after repeated recycling. In particular, by utilizing chemical recycling technology, SKYPET CR maintains a quality level close to that of virgin petroleum-based products even after repeated recycling—unlike conventional recycling methods—making it an ideal material for establishing a closed-loop system.

By applying SKYPET CR to automotive carpets and mats, these products can be depolymerized and recycled after reaching the end of their lifespan, enabling the establishment of a closed-loop system within the automotive industry. This advancement is anticipated to enable compliance with vehicle circularity regulations—such as the End-of-Life Vehicles (ELV) directive.

SK chemicals will deepen its collaboration with Durmont and Visscher-Caravelle, while also expanding partnerships with other global automotive brands for other products and applications

CEO Ahn Jae-hyun commented, “In Europe, the introduction of carbon neutrality regulations, such as the ELV directive, is driving a growing interest in vehicle circularity and recycling.” He added, “SK chemicals will continue to promote sustainability in the industry by leveraging our depolymerization technology and meet the material and performance requirements of automotive components, while fostering collaboration with industry partners.”

In 2023, SK chemicals established SK Shantou with an investment of KRW 130 billion (approximately USD 94 million), securing the world’s first commercialized chemical recycling production facilities for raw materials and products. In Korea, SK chemicals is also expanding its recycling-related production and research infrastructure by establishing the Recycling Innovation Center within its Ulsan plant site, which includes a pilot facility for chemically decomposing waste plastics to produce recycled raw materials (r-BHET).

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