The groundbreaking ceremony of the Ecovance high-tech biodegradable materials factory project was held on May 11.

Covering an area of 32,000 square metres in Dinh Vu Industrial Park, the project has an initial investment of $100 million. By 2030, Ecovance Co. Ltd., under SK Group, plans to raise the investment capital to $500 million.

Under its plan, the construction of the factory is slated to be completed in June 2025. The factory will be put into operation in September 2025, following a trial operation in July.

The project has the goal of producing biodegradable materials such as PBAT, PBS, and PBATS.

Once fully operated, the project will reach an annual capacity of 70,000 tonnes of PBAT biodegradable plastic products, 59,500 tonnes of PBS biodegradable plastic products, and 6,300 tonnes of THF solvent products.

Speaking at the ceremony, Le Anh Quan, Deputy Chairman of Haiphong People’s Committee, said the project was of great significance as plastic waste pollution is a pressing global issue. The project contributes to reducing environmental pollution and protecting biodiversity while opening up a new path for the plastics industry towards a green and circular economy.

The project also marks an important milestone in Haiphong’s efforts to engage foreign direct investment (FDI) in the high-tech, eco-friendly material fields.

In 2023, Haiphong lured $3.5 billion in FDI, 1.75 times higher than the year’s target, ranking second in FDI attraction nationwide. In 2024, Haiphong aims to draw in $2.5 billion in FDI. In the first four months of the year, the city has reported nearly $700 million.