Hyosung plans huge investment in carbon fibres business
Pic: Hyosung/Business Wire
With a view to becoming among the top three producers of carbon fibres in the world, Hyosung plans to invest KRW 1 trillion in its carbon fibres business by 2028. The funds will be used to expand its production capacity from the current 2,000 metric tons a year (one line) to 24,000 metric tons (10 lines). This will make it the world’s single-largest factory.
Works for the first round of installation extension are underway. In January 2020 after the completion of the first round, there will be a carbon fibre factory with an annual capacity of 2,000 metric tons. It will churn out carbon fibers in earnest from February.
If 10 more lines are installed by 2028, Hyosung’s ranking in terms of global market share will rise from 11th (2 per cent) as of 2019 to third (10 per cent). Its employment will increase massively from current 400 employees. More than 2,300 new jobs are expected to be created by 2028.
Hyosung has signed an investment agreement with South Jeolla Province and Jeonju City regarding the installation and extension of production facilities and investment support. Hyosung has also concluded an “alliance MOU” with the Ministry of Trade, Industry and Energy and two other carbon fibre companies -- Iljin Composites and KAI -- to strengthen cooperation through joint tests.
“We took notice of the future value of carbon fibre and decided to develop our own technology,” Hyosung chairman Hyun-Joon Cho said. “We will play a major role in turning Korea into ‘a materials powerhouse’ through a further development of carbon fibre because possibilities of its downstream industries are endless and the material has opened new markets in the hydrogen economy.”
“We have been world No 1 in many fields including spandex and tire cords because we have stubbornly developed our own technologies all the way from materials to production processes to surpass our rivals,” Cho said. “We will keep exploring new fields to sow the seeds of other materials businesses.” (SV)
Fibre2Fashion News Desk – India