Chairman Lee Jay-hyun of CJ Group. (Photos: CJ Cheiljedang)

CJ Cheiljedang is stepping on the gas to diversify the “white (or grey) bio” business, which is emerging as a new growth engine.

The company agreed to produce food packing products in cooperation with the polymer compound maker HDC Hyundai EP.

President Choi Eun-seok of CJ Cheiljedang and President Chung Joong-gyu of HDC Hyundai EP pose after signing an MOU on the establishment of a bio compounding joint venture with at Hyundai I-Park Tower in Seoul on June 24.

The white bio business is an industry that produces industrial materials using plants and other living resources.

The eco-friendly industry of replacing petrochemical materials has taken on significance of late.

President Choi Eun-seok of CJ Cheiljedang struck an MOU on the establishment of a bio compounding joint venture with President Chung Joong-gyu of HDC Hyundai EP at Hyundai I-Park Tower in Seoul on June 24.

Both sides plan to complete the signing of a comprehensive contract and the establishment of the joint venture this year.

The joint venture will develop compounding solutions by utilizing biodegradable plastic material polyhydroxyalkanoates, or PHAs, and cellulose and mass produce bio plastics.

It will concentrate on its applications to packing products, car interior materials and other sectors related to human daily lives.

CJ Cheiljedang President Choi said, “For a company, sustainable management is a must, not an option, and as the circular economy of plastics has become global goals, the two companies’ collaboration is significant.”

The two companies will be able to aggressively comply with the government’s policy of nurturing the white bio industry by playing a pivotal role particularly in the eco-friendly material field, he said.

HDC Hyundai EP President Chung said, “I’m pleased for the two companies to collaborate at the moment for changes designed to protect the environment of the Earth and create a sustainable society.

“If the two companies, each maintaining the top-tier position in its own sector, will explore new technologies and markets by joining forces, it will create the greatest synergetic effects.”

Meanwhile, CJ Cheiljedang is maintaining the pole position in the global green bio market by logging about 3 trillion won in annual sales based on microorganism technologies.

The company ventured into the white bio market in earnest with the marine biodegradable plastic material PHA last November. CJ Cheiljedang is building a PHA production line with an annual capacity of 5,000 tons, which is to be dedicated in Pasuruan, Indonesia, by late this year.

CJ Cheiljedang has made packing materials, using a combination of biodegradable plastics PHA and PLA (left) as well as wholly PLA (right).

The company plans to diversify its business portfolio in the white bio sector by teaming up with global players in the bio-chemical sector.

 
HDC Hyundai EP, a subsidiary of Hyundai Development Company (HDC), was spun-out from HDC’s petrochemical business in 2000.

The company has made a splash in a variety of sectors such as automobiles, electronics, construction and daily supplies through innovation of the functional polymer industry.

HDC Hyundai EP entered the bio plastic business by producing materials based on cellulose, an eco-friendly bio-materials, last year.