• SKC,
  SK picglobal, and PIC, a state-run chemical company in Kuwait, have signed an
  MOU on cooperation in the eco-friendly plastic business.

• Combining
  SKC’s eco-friendly solutions and PIC’s business competency will _ create_ synergic
  effects and build a virtuous cycle system for plastic recycling in Kuwait.

SKC (CEO Lee
Wan-jae) will join forces with Kuwait's largest petrochemical company PIC (Petrochemical
Industries Company: CEO Mutlaq al-Azmi) to promote a variety of ways to expand
its eco-friendly plastics business, including recycling waste plastics and
producing biodegradable plastics, into the Gulf state. PIC, a local partner of the
joint venture SK picglobal, is a 100% subsidiary of Kuwait State Petroleum
Corporation (KPC), the world's fifth largest oil company in terms of production.
The company has shown keen interest in promoting eco-friendly plastic waste recycling
business in the country.

SKC, PIC, and SK
picglobal, a joint venture in the chemical business of the two companies,
signed an MOU on cooperation in the eco-friendly plastic business in Kuwait in
Los Angeles, USA on September 16 (local time). The event was attended by key
executives from each of the three companies, including SKC CEO Lee Wan-jae, PIC
CEO Mutlaq al Azmi, and SK picglobal CEO Won Ki-don.

In the MOU, SKC,
PIC, and SK picglobal have agreed to review market trends and related laws
together and conduct a commercialization feasibility study to apply SKC's
outstanding eco-friendly plastics business capabilities to Kuwait. Top priority
will be placed on waste plastic pyrolysis oil business and biodegradable
plastic business. According to the results of the marketability analysis, they
will proceed with local commercialization in a variety of ways, such as joint
ventures and/or technology exports.

PIC has shown keen
interest in participating in eco-friendly business: In April 2021, it signed an
MOU with the municipal government of Kuwait City, the capital of Kuwait, on the
research needed to build waste plastic recycling facilities in the city while
expressing its intention to embark on related business ventures as well. SKC
plans to actively share its technology and commercialization expertise it has
accumulated with PIC while conducting eco-friendly plastic recycling business _ base_d
on the mutual trust the two companies have built up through the chemical
business joint venture.

SKC and SK picglobal
have started commercialization in the sector: In August, they began building a
pilot facility for waste plastic pyrolysis oil in SK picglobal's Ulsan plant in
order to extract oil from waste plastics. The pyrolysis technology that SKC has
introduced from Kankyo Energy, Japan will boost productivity in the extraction
process thanks to thermal decomposition at lower temperatures and high yields.

Most notably, SKC has
concentrated its efforts on the biodegradable plastics business: In 2009, it
succeeded in the commercialization of PLA film packaging material for the first
time in the world; In 2020, it secured high-strength PBAT technology from the
Korea Research Institute of Chemical Technology; In 2021, to accelerate its
business expansion, SKC established a joint venture with TBM, a Japanese
eco-friendly materials startup, for the development and production of
‘Biodegradable LIMEX,’ a mixture of limestone with biodegradable plastic resin
such as PBAT and PLA.

“SKC ultimately
intends to revitalize the plastic circular economy and contribute to creating a
plastic-free world,” said SKC CEO Lee Wan-jae. “We look forward to successfully
establishing a circular economy for plastics in Kuwait by adding PIC’s strong
value chain and network to the solutions that SKC has to offer.”

[SKC and SK
picglobal signed an MOU on cooperation in the eco-friendly plastic business in
Kuwait on September 16 in Los Angeles, USA: (from right) SKC CEO Lee Wan-jae,
SK picglobal CEO Won Ki-don, and PIC CEO Mutlaq al Azmi]