HS Hyosung Advanced Materials, Kolon Industries, and Taekwang Industrial, among other petrochemical companies, are focusing on producing "super fibers," considered specialty (high value-added) products. Super fibers are high-performance advanced fibers that are light yet excel in strength and elasticity, including carbon fiber, para-aramid, ultra-high-molecular-weight polyethylene (UHMWPE), and polyimide (PI).
According to the petrochemical industry on the 5th, HS Hyosung Advanced Materials plans to begin operating new carbon fiber facilities with an annual capacity of 5,000 tons (t) at its Vietnam plant starting in the third quarter of this year. It will also add 2,500 t of production starting in the first quarter of next year.
Carbon fiber is an extremely rigid yet lighter-than-steel material used in hydrogen cars, fuel tanks, and aircraft fuselages. Compared with steel of the same weight, it is more than 10 times stronger, and based on the same volume, it weighs only one-fourth that of steel, earning it the nickname "dream new material."
Japanese corporations still hold the edge in the global carbon fiber market, but Chinese corporations are rapidly closing the gap. As of last year, carbon fiber market shares were Japan 42%, China 28%, the United States 13%, Germany 10%, and Korea 6%. Korean corporations are assessed as producing products with particularly high barriers to entry among carbon fibers.
A HS Hyosung Advanced Materials official said, "There are various types of carbon fiber, and we are competitive in higher-grade products," and noted, "The carbon fiber market is improving, so we expect better results this year."
Kolon Industries plans to invest 100 billion won in capital expenditure (CAPEX) for para-aramid this year to increase production. Aramid is extremely tough, resists breaking, and is flame-resistant, so it is used in optical cables, tire cords, and aerospace materials; para-aramid is a product with even higher rigidity than general aramid.
Kolon Industries raised the operating rate of its para-aramid production plant to 80% last year and is aiming for 100% operation this year. Kolon Industries is the No. 1 company in Korea, producing 15,300 t of para-aramid annually.
Taekwang Industrial will also begin expanding its Ulsan para-aramid production plant starting in March. Once the expansion is completed, annual output will jump from 1,500 t to 5,500 t.
The reason the two companies are increasing para-aramid production is that demand is rising as it emerges as an essential basic material for advanced industries such as defense, communications, and electric vehicles.
The aramid market is led by Chinese corporations that leverage large-scale production and low-price strategies. As supplies of Chinese aramid increase, many corporations have exited the business. DuPont in the United States sold its entire aramid business unit in 2024, and Teijin in Japan closed its Netherlands production plant. In contrast, high value-added products such as para-aramid are mainly sold by companies in Korea and Japan.
A Kolon Industries official said, "We expect market conditions for para-aramid to improve this year," and added, "While increasing production, we plan to diversify pricing policies in line with market conditions to boost profitability."