SK Group to pour $500 million into DEEP C Industrial Zones in Haiphong

September 23, 2023 | 16:22
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South Korea’s second-largest conglomerate is investing $500 million in a high-tech biodegradable materials plant in Haiphong.

On September 22, at the recent conference on granting investment registration certificates for projects in industrial areas in Haiphong, Haiphong Economic Zones Management Authority (HEZA) approved the $500 million ECOVANCE high-tech biodegradable materials factory project from SK Group.

The project has the goal of producing biodegradable materials PBAT, PBS, and PBATS. The project covers over 32,000 square meters located in DEEP C Haiphong I Industrial Zone (IZ).

Phase 1 of the project will start construction in mid-December and complete construction within nine months. It is expected that the project capacity will reach about 35,000 tonnes of products per year. After the expansion in phase two, the project will reach a capacity of 70,000 tonnes per year.

Woncheol Park, CEO of SKC Group (part of SK Group) said, “We have invested around $3 billion in Vietnam for five years now. Haiphong is one of the cities with modern infrastructure and good investment attraction mechanisms, which is why we decided to invest here."

The company has fulfilled the commitment signed with the city in June, and it will continue to call for more Korean businesses to invest in Haiphong. "In the future, we hope our development will contribute to local growth," he added.

The ECOVANCE project also demonstrates the growing importance of environmental, social, and governance factors in business decision-making. Investors and consumers are increasingly demanding that companies take responsibility for their environmental and social impact. The ECOVANCE and DEEP C projects illustrate how businesses can work together to create a more sustainable future.

Koen Soenens, general sales and marketing director of DEEP C Industrial Zones, told VIR, "The importance of SKC Group's large-scale high-tech ecological project at DEEP C cannot be underestimated. This is an important milestone in developing Vietnam's economy and moving towards a more sustainable future. Both ECOVANCE and DEEP C are working together to successfully develop the first biodegradable materials factory in Southeast Asia. Together, the two sides will put Haiphong on the map as the high-tech and eco-business centre of Northern Vietnam."

New grant and increased capital

DEEP C IZs in Haiphong is also welcoming four other projects. First, Japan's Soft Industry Co., Ltd., increased capital by $15.2 million to expansion the construction of warehouses and storage tanks. Hong Kong's Daimay Investment will inject $15 million in a project to produce spare parts and accessories for cars.

Meanwhile, Top Solvent Vietnam Co., Ltd. from Thailand increased capital by $12.8 million into the warehouses and storage tanks project, and GoodWe Singapore signed a new grant of $10 million for an optical equipment manufacturing project.

Le Trung Kien, head of HEZA said, "The trend of producing high-tech, environmentally friendly products is the main trend of the industry today, and South Korea is one of the leading countries in the world in this area. Projects implemented in Haiphong will contribute to bring many applications of modern tech to the city's industrial production. At the same time, they will help strengthen the skills of the city's human resources, form research and development centres, and generate budget collection."

SK Group to pour $500 million into DEEP C Industrial Zones in Haiphong

Planning a green future

In addition to focusing on investing in synchronous and high-quality infrastructure development, DEEP C is one of the pioneers in using clean energy, such as wind power and solar power in the management and operation of IZs, as well as deploying many solutions to promote sustainable development.

At DEEP C IZs, buildings are invested and constructed in accordance with green building standards. In addition, waste and water treatment systems were developed to reduce the burden on the environment and worker's housing. Renewable energy is used, and a circular economy is applied.

Moreover, it is one of two IZs in the city developed following the eco-IZ model, aiming for sustainable development and high technology application.

Secondary projects in DEEP C IZs are mostly projects with high technology content, environmentally friendly, and consistent with green development trends. Also, they will create jobs for workers, contribute to stabilising social security and contribute to the city's budget.

Bruno Jaspaert, general director of DEEP C IZs said, "DEEP C is currently selected as one of the pilot IZs in Vietnam to be transformed into the eco-IZ model. Currently, we are developing based on the United Nations' Sustainable Development Goals. We hope that by 2024, DEEP C will be officially recognised as an eco-IZ in Vietnam."

SK Group to pour $500 million into DEEP C Industrial Zones in Haiphong
Currently, DEEP C is operating three IZs in Haiphong and two in Quang Ninh province over more than 3,400 hectares. Over the past 26 years, DEEP C has attracted more than 160 secondary projects worth up to $6.5 billion. Projects come from many different countries and industrial sectors, involving names such as Pegatron, Shin-Etsu, Bridgestone, Nippon Express, Idemitsu, and more.
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By Thanh Son

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