POSCO International Corp. said Wednesday it has signed a memorandum of understanding (MOU) with two bioplastic companies to enter the biodegradable plastic recycling sector as part of its bid to expand its green portfolio.
POSCO International signed the deal with TotalEnergies Corbion, a Netherlands-based bioplastic company, and Esol, a South Korean supplier of polylactic acid (PLA), on Tuesday, under which the three companies will collaborate to develop PLA recycling technologies, POSCO International said.
PLA is a biodegradable polyester derived from renewable biomass, such as fermented plant starch from corn or sugarcane and is known as a material that can be widely used for food packaging considering the environmental impact.
Demand for PLA recycling is also gaining traction amid its notable growth.
POSCO International will be in charge of the overall planning and management in the partnership, along with providing funding support.
TotalEnergies Corbion will share its PLA technologies to help push for the establishment of a PLA recycling facility. Esol will supply waste PLA required for the recycling.
POSCO International, a commodities trading unit under South Korean steel giant POSCO Holdings Inc., has stepped up efforts to diversify its areas of business, with a focus on green energy and resources, including carbon capture and storage.
Source: Yonhap News Agency