Germany – South Korean Dongsung Chemical and the German UPM Biochemicals have decided to join forces to produce renewable products utilizing bio-based raw materials, starting with materials for shoes.
In order to create a sustainable polyurethane product based on UPM Biochemicals’ biobased mono-ethylene glycols (MEG), UPM BioPura, Dongsung Chemical has signed a Letter of Intent.
At Leuna in Saxony-Anhalt, Germany, UPM is investing 750 million euros to construct the first industry-scale biorefinery in the world, which will be used to produce next-generation biochemicals from woody biomass that has been sustainably procured and verified. The plant intends to generate 220,000 tonnes overall every year. One of the outcomes is bio-MEG. UPM plans to launch it by the end of 2023.
The two businesses will actively work together through this agreement to develop eco-friendly products using Bio-MEG, focusing on the Asian market and its sizable textile and footwear industries. By developing environmentally friendly product lines and incorporating UPM’s Bio-MEG into its manufacturing, Dongsung Chemical intends to diversify its product line. The intention is to first use it to footwear materials before broadening the range of application to adhesives and interior vehicle materials.