UPM signs contract with Dongsung Chemical to sell bio-based ethylene glycol (MEG) in South Korea

UPM Biochemicals has selected Dongsung Chemical for its bioethylene glycol (BioMEG) UPM
Exclusive distributor of BioPura™ in Korea. This further strengthens the development partnership announced by the two companies last year. By adding UPM to its supplier network, Dongsung enhances the sustainable transformation of its product portfolio and supports the overall development of the Korean chemical industry to become more sustainable.

Through this collaboration, UPM Biochemicals will enter the large and attractive Korean ethylene glycol (MEG) market, which is approximately two-thirds the size of the EU ethylene glycol market.

UPM Biochemicals has established various industry partnerships in the automotive, fashion and packaging industries, enabling a major shift from fossil to renewable materials.

Michael Duetsch, Vice President of UPM Biochemicals said: “Expanding our partnership with Dongsung
Chemical’s partnership is another important milestone in bringing our renewable chemicals to market and establishing an entirely new category of high-value sustainable chemicals. We will continue to work together to develop alternative solutions for our diverse customer base in the Asian footwear and textile markets. In the past few years, Dongsung
Chemical plays a leading role in advancing sustainable customer solutions. We are pleased to now be able to rely on their experience, enthusiasm and vision to promote our innovative materials in the large ethylene glycol market in South Korea. ”

ManWoo, CEO of Dongsung Chemical
Lee added: “Our collaboration with UPM enables us to supply bio-based feedstock derived from wood in South Korea. We are committed to reducing carbon emissions and strengthening ESG management by assisting partners to develop environmentally friendly products using UPM’s bioethylene glycol technology .”

UPM invested 1.18 billion euros to build its world’s first industrial-scale biorefinery in Leuna, Germany. In the Leuna region, UPM will convert sustainably sourced, certified hardwood into next-generation bio-based chemicals, which will enable industries to transition from fossil to renewable materials.

UPM’s BioMEG BioPura™ is made from hardwoods grown in forests around Leuna, Germany. UPM
Biochemicals says it is climate neutral and does not compete with food resources.