Kolon Industries to expand high-value specialty petroleum products plant

Kolon Industries Inc., a leading industrial materials maker in South Korea, announced on Monday that it will invest 24 billion won ($17.94 million) to expand its high-purity aromatic petroleum resin (PMR) production facility in its Yeosu plant in South Jeolla Province.

With this expansion, the production capacity of PMR, which is currently 11,000 tons, will increase to 21,000 tons. Upon completion of the expansion in the first half of next year, Kolon Industries will become the global leader in terms of PMR production capacity.

This strategic move aims to further solidify the company's dominance in the specialty (high-performance) petroleum resin market.

PMR is a petroleum resin that enhances heat stability and adhesion and is used as a special additive in high-performance tires, electric cables and sanitary products.

In particular, it can improve the braking power and driving safety of electric vehicles, which are about 30% heavier than internal combustion engine vehicles, by strengthening the durability of rubber tires.

Kolon Industries has been commercially producing PMR since last year. The company explained that it has continued "full production and full sales" of PMR, as the electric vehicle market expands and the demand for high-performance tires increases.

"With the expansion of the high-performance tire market centered on premium vehicles, we are responding promptly to customer orders by quickly increasing production capacity," the head of Kolon Industries' Business Division 5 Park Joon-hyo said. "As the leading petroleum resin company in the domestic market, we will actively expand our specialty business, enhance our portfolio, and generate profits."

Write to Mi-Sun Kang at misunny@hankyung.com