Kolon Industries is rapidly reshaping its portfolio around high value-added industrial materials. After securing future growth drivers by expanding its tire cord plant in Vietnam, it is accelerating organizational sophistication and operational efficiency through the absorption and merger of subsidiaries. This year, Kolon Industries plans to make an all-out effort to strengthen global competitiveness.
According to the industry on the 20th, Kolon Industries' Vietnam plant is moving ahead with expansion to preemptively respond to rising demand from global customers. In Jan. last year, Kolon Industries decided to invest about 30 billion won in its Vietnam tire cord plant to add tire cord heat-treatment facilities.
The heat-treatment process is the core step that determines the performance and quality of tire cord. Starting in Jan. 2027, tire cord production capacity at Kolon Industries' Vietnam plant will jump from the current 36,000 tons (t) a year to 57,000 t.
In Jun. last year, it invested about 34 billion won and is building production facilities for modified polyphenylene oxide (mPPO; modified Poly Phenylene Oxide), a next-generation copper clad laminate (CCL) material, at the Gimcheon Plant 2. It is aiming for completion in the second quarter this year. The plan is to develop it into a supply base for high value-added materials that meet demand for ultrahigh-speed, low-power technologies such as artificial intelligence (AI) semiconductors and the 6G Network.
Kolon Industries halted direct production of general-purpose polyester chips (PET chips), a basic raw material for key industrial materials, between Sep. and Oct., and shifted to an outsourcing model. The move is aimed at boldly streamlining low price-competitive businesses and reshaping its portfolio around high value-added industrial materials. The plan is to improve the cost structure from the materials and supplies stage and further boost profitability in the industrial materials institutional sector.
It also focused on advancing the organization to strengthen corporate competitiveness. In Jan. last year, Kolon Industries absorbed and merged the automobile materials and parts institutional sector of its subsidiary Kolon Glotech, integrating the businesses. It built an automobile materials and parts portfolio that spans airbags, car seats, and automotive interior materials. It decided to expand its global sales network to the United States, China, India, Europe, and Latin America.
In Nov., it approved a merger with its subsidiary Kolon ENP and is proceeding with procedures to complete the merger in Apr. this year. Established in 1996, Kolon ENP is a corporation with high-performance engineering plastics such as POM, compounds, and composite materials, and counts advanced industries such as automobiles and medical as its main customer base. Once the merger is completed, Kolon Industries is expected to further strengthen its global customer-tailored solution capabilities by adding ENP's high value-added product lineup to its existing materials portfolio.
President Heo Seong, who leads Kolon Industries, is meticulously checking on-site operations. From Jan. to Feb., Heo visited 12 company business sites nationwide to review plant-specific issues and progress in operation excellence (OE). The sites visited this time included Kolon ENP's Gimcheon plant, where the merger will be completed in Apr. this year.
Since immediately after taking office last year, President Heo Seong has pushed "achieving global-level OE" as the top goal. OE means attaining the highest efficiency at every stage from raw material procurement to production and shipment. To that end, Heo set up a dedicated organization to oversee companywide OE activities.
Going forward, Kolon Industries plans to focus on further raising the companywide OE level as soon as the merger with Kolon ENP is finalized. A company representative said, "2025 was a year when we strengthened the foundation for the company's mid- to long-term future growth," adding, "This year, we will continue efforts to strengthen corporate competitiveness, including making products higher value-added."