Satellite Chemical and SK Zhixin have formed a joint venture to build Asia's first EAA unit

Recently, the unveiling ceremony of Sino-Korean Kerui New Materials (Jiangsu) Co., LTD., a joint venture between Satellite Chemical and SK Zhixin, was held in Xuwei New Area of Lianyungang City, marking the substantive operation of the first Korean-funded project in Lianyungang Petrochemical Industry Base, and accelerating the integration of satellite chemical into the global petrochemical chain. SK Zhixin President Luo Gengxiu, Senior Vice President Zhang Nanxun, Vice President CAI Lianchun, Chairman and President of Satellite Chemical Yang Weidong, Vice President Zhu Xiaodong, Financial Center Director Li Jun and other attended the ceremony.

The China-Korea Keri New Materials (Jiangsu) Co., Ltd. was established on May 27, 2021 as a joint venture between Satellite Chemical and SK Zhixin, a wholly owned enterprise of SK Group, one of South Korea's three major conglomerates, to jointly construct and operate the EAA (ethylene-acrylic polymer) project. The project is the first installation in Asia, with a total investment of about 1.64 billion yuan, covers an area of about 108 mu and a production scale of 40,000 tons/year. It is planned to start piling in June this year and put into production in 2025. At present, the project has completed the procedures of land "bidding and auction", energy assessment, safety assessment and environmental assessment review, and is pushing forward the detailed design of the project and land vacuum preloading.

Foreign investment plays an important role in promoting high-quality development. This year's government work report calls for greater efforts to attract and utilize foreign investment and promote high-level opening-up. In response to the national development strategy, Satellite Chemical and SK Zhixin joint venture to build EAA project, promote mutual benefit and win-win, promote the high quality development of the industry. The project takes light raw materials as the core, relies on the integration of satellite chemical industry chain to provide sustainable and stable raw materials, and produces EAA products through SK Zhixin's advanced processing technology and plant operation experience. After the project is completed and put into operation, it will further accelerate the integration of the upstream and downstream industrial chain of satellite chemistry, improve the layout of new energy materials, polymer new materials and functional chemicals, and build a more complete system of green and high value-added new materials.

EAA is a kind of high value-added chemical materials with high technical barriers, made of ethylene and fine acrylic acid polymerization of high temperature and high pressure free radicals, with excellent heat sealing, tear resistance, can isolate air and water vapor, metal, glass and other excellent adhesion ability, used in electric vehicle battery electrode and diaphragm, food and drug packaging, photovoltaic, wire and cable, steel coatings and other fields. EAA products are favored as the market for fresh packaging materials continues to expand due to the rapid growth of distribution logistics demand in China. At present, EAA in the Chinese market all depends on imports, and the project will fill the gap in domestic production after it is put into operation.

This cooperation is a joint choice between Satellite Chemical and SK Zhixin in the development and layout of new materials projects in the field of packaging. Both parties will give full play to their respective advantages, promote product development, technological innovation and project operation, and provide new driving force for optimizing the structure of green and high value-added chemical products, promoting China's level of opening up to the outside world, and promoting the innovative and high-quality development of new materials industry.