GWANGJU — Styrofoam boxes once thrown away after a single use are being turned into a new source of revenue.
Okyunsun Idea Group said on the 22nd that it is launching a resource-recycling business to collect used expanded polystyrene (EPS) boxes, clean them and supply them again.
The venture began after the company secured the technology to address contamination and odor, the biggest obstacles to reusing EPS boxes. The company collects used boxes and sorts them to determine whether they can be reused. The boxes then go through surface cleaning, deodorizing, sterilization and quality inspection before being resupplied as reusable packaging.
EPS boxes are a mainstay of logistics for seafood and fresh food. But they are often discarded after a single use, raising concerns about disposal costs and environmental damage. The cost of new packaging is also climbing as petrochemical feedstock prices and manufacturing and logistics expenses fluctuate.
Okyunsun Idea Group believes companies can cut packaging costs by safely reusing collected boxes rather than continuing to buy new ones. Under the business model, companies that use packaging lower their costs while operators earn revenue from collecting, cleaning and resupplying the boxes.
The key variables are collection rates and cleaning efficiency. The business can be viable only if a high share of boxes is suitable for reuse and equipment utilization remains stable. The company plans to verify actual cost savings and profit margins through field demonstrations.
The initial market is the seafood and food distribution sector in the Jeonnam-Gwangju region. The company plans to expand collection, cleaning and resupply hubs by region and to pursue partnerships with local operators. It is also considering a licensing business built on its technology and operating expertise.
"We have secured the technical foundation to deal with the contamination and odor problems that made reuse difficult," the chief executive of Okyunsun Idea Group said. "We will revive the economic value of packaging that was being thrown away and develop it into a resource-recycling model that can cut costs and generate revenue."