Aekyung Chemical is completing a production facility in Vietnam, which has rapidly emerged as a key production and export base for corporations in South Korea. This move allows Aekyung Chemical to strengthen its influence in the Vietnamese market while simultaneously targeting both the Southeast Asian and global markets.
According to Aekyung Chemical, the company commenced construction of new and expanded facilities at its Vietnam plant (Lotus Project) in February 2023 and held a completion ceremony at the end of February this year, marking the start of full-scale operations.
Lotus refers to the national flower of Vietnam, which symbolizes prosperity and will. It is also the name of Aekyung Chemical's project to expand its surfactant production facility and establish a new base for Unsaturated Polyester Resin (UPR) in Vietnam. With this, Aekyung Chemical successfully builds its entire business portfolio in Vietnam, following its acquisition of equity in the local plasticizer production company, VPCHEM, and stabilizing the operations of its surfactant and synthetic resin factories.
The new and expanded project for Aekyung Chemical's local facility in Vietnam is the result of a strategic choice aimed at securing global survival and future growth drivers. It also holds significant meaning as it strengthens Aekyung Chemical's presence in the Vietnamese market, which is gaining attention as an emerging hub with limitless potential, and further actively targets the growing Southeast Asian market.
Vietnam is recognized as a market with the highest growth potential in the surfactant and synthetic resin sectors. Regarding the surfactant business, approximately 35 million daily consumer products are used in Vietnam alone, but AK VINA is the only corporation producing certain consumer surfactants such as fabric softeners locally. Moreover, as the demand from multinational corporations to source surfactants locally has increased, Aekyung Chemical is expected to more easily secure a foothold in the local market and strengthen its dominance.
The synthetic resin business is also expected to contribute to Aekyung Chemical's market share expansion, thanks to the growth of front-end industries such as artificial marble and mechanical molding in Vietnam. Currently, the demand for UPR in Vietnam reaches tens of thousands of tons annually, but most of it relies on imports.
This interest among corporations in Vietnam regarding UPR demand is also the background for Aekyung Chemical's plans to establish a new production base. Aekyung Chemical aims to dominate the market by supplying high-quality UPR, produced based on decades of proven know-how in domestic and foreign markets, in a stable and timely manner. Additionally, the company intends to further strengthen its presence in Southeast Asia and global markets alongside Vietnam.
Aekyung Chemical's plant in Vietnam is located in Dong Nai Province. Its proximity to Ho Chi Minh City, an economic hub of Vietnam, provides an advantage in securing quality labor and boasts excellent logistics infrastructure.
With the completion of the Vietnam plant, Aekyung Chemical expects to raise its production capacity for surfactants and UPR to 40,000 tons and 37,000 tons, respectively, enabling more flexible and rapid responses to market conditions.
After solidifying its production base in Vietnam, the company plans to increase the available supply to the growing markets of Vietnam and Southeast Asia and enhance its market responsiveness. Additionally, by supplying products locally to enhance logistics cost competitiveness, Aekyung Chemical aims to establish a system that allows for the immediate production and supply of customized products, thereby increasing customer satisfaction.
The plant in Vietnam features various advanced technologies and equipment, including ultra-large UPR reaction facilities, RTO environmental protection systems, state-of-the-art automatic packaging machines, and automated warehouse facilities linked to WMS, boasting the largest scale and highest level of manufacturing environment in Vietnam.
The company continues to strive for zero defect rates through stringent quality control that exceeds industry standards. Alongside this, Aekyung Chemical plans to provide high-quality training for hired employees to cultivate personnel who can secure the best mass production quality. Currently, 144 employees are working at AK VINA, and this number is expected to increase to 170 by the end of this year.