LG Chem will extract oil from plastic waste and reuse it for plastic production starting in 2024.

According to South Korea’s leading chemical company Tuesday, it will establish a facility in Dangjin, South Chungcheong Province, where the plastic waste will be chemically recycled with extremely hot and pressurized steam. Once completed in the first quarter of 2024, the facility, with an annual capacity of 20,000 tons, will utilize the extracted oil to produce raw materials for plastic production.

“With 10 tons of waste vinyl and plastic, 8 tons of oil can be extracted. The idea is to retrieve naphtha, the basic ingredient of plastics, from the oil and use it as a feedstock to make new plastic,” a company official said.

LG Chem will work with UK-based Mura Technology, which has source technologies to chemically recycle plastic waste. Last October, LG Chem made an equity investment in the company.

While 700,000 tons of oil was extracted from plastic waste in 2020, about 3.3 million tons is expected in 2030, according to the company.