South Korea: Plant Engineering Hyosung to Invest 828 Million Dollars in Carbon Fibers Business
Hyosung aims to become among the top three producers of carbon fibers in the world. With the heavy investment, the firm plans to expand its production capacity from the current 2,000 metric tonnes a year to 24,000 metric tonnes.
Seoul/South Korea – Hyosung seeks to be among the global top three producers of carbon fibers through heavy investment. Hyosung will invest a total of 828 million dollars in its carbon fibers business by 2028 to expand its production capacity from the current 2,000 metric tonnes a year (one line) to 24,000 metric tonnes (10 lines). This will be the world’s single-largest factory. Work for the first round of installation extension is underway. In January 2020 when the first round will be done, a carbon fiber factory with an annual capacity of 2,000 metric tonnes will be completed. 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 the current 400 employees. More than 2,300 new jobs are expected to be created by 2028.
Hyosung signed an investment agreement with South Jeolla Province and Jeonju City regarding the installation and extension of production facilities and investment support. Hyosung also concluded an ‘alliance MOU’ with the Ministry of Trade, Industry and Energy and two other carbon fiber companies— Iljin Composites Co. and KAI—to strengthen cooperation through joint tests.
“We took notice of the future value of carbon fiber and decided to develop our own technology,” Hyosung Chairman Hyun-Joon Cho said in the signing ceremony for the agreements. “We will play a major role in turning Korea into ‘a materials powerhouse’ through a further development of carbon fiber 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.”