Kumho Petrochemical's plant in Yeosu, South Jeolla Province / Courtesy of Kumho Petrochemical
Kumho Petrochemical Group is seeking to respond to mounting market uncertainties and a prolonged global petrochemical supply glut by accelerating its shift toward a high value-added business portfolio, the company said Wednesday.
The group plans to closely monitor market trends to strike a balance between profitability and growth, with the goal of turning the current downturn into a new growth engine.
Kumho Petrochemical, the group’s flagship affiliate, has stepped up efforts to sharpen its edge in solution styrene butadiene rubber (SSBR), a high-performance synthetic rubber that enhances both tire wear resistance and fuel efficiency. The material is viewed as especially well-suited for electric vehicles, whose tires face heavier loads from batteries as well as frequent acceleration and braking.
The company completed new SSBR facilities last year, boosting its annual production capacity by 35,000 tons. With the additional lines that started commercial operations in the first quarter, Kumho Petrochemical expects it will be able to further reinforce its position in the specialty rubber market.
Kumho Mitsui Chemicals, a joint venture between Kumho Petrochemical and Japan’s Mitsui Chemicals, decided last year to add 100,000 tons to its annual methylene diphenyl diisocyanate (MDI) capacity, on top of a 200,000-ton expansion in 2024.
By improving the efficiency of existing lines rather than building entirely new ones, the project aims to enhance cost competitiveness and investment efficiency, strengthening the company’s standing in the global MDI sector.
Kumho Polychem, which produces ethylene propylene diene monomer (EPDM), also wrapped up a capacity expansion last year, lifting its annual EPDM output by 70,000 tons to a total of 310,000 tons.
EPDM is a high-performance synthetic rubber known for its excellent resistance to heat, weather and chemicals. It is widely used in automotive, shipbuilding and various industrial applications.
Kumho P&B Chemicals, an industrial raw materials producer, has been broadening its overseas footprint in regions such as the Middle East and Europe, while maintaining stable revenue through long-term supply contracts with key customers.
Source: Korea Times News
