Kumho Aims to Become Top Rubber Supplier

Kumho Petrochemical chairman Park Chan-koo has plans for the company’s future as a top global chemical-making company, marking over 20 trillion won in annual revenue with 20 original high-quality products that are number one in their respective sector by 2020.

To achieve the goal, Kumho is strengthening its existing rubber and resins business while looking for new momentum in fine chemicals, electrochemicals, energy and building materials. It also plans to start production for precision materials like carbon nanotubes and bio-ethanol, according to a report in the Korea Times. Park vowed to invest approximately 50 billion won on more facilities at the start of the year. 

As the world’s automobile industry has started to recover from the recession, Kumho Petrochemical has been increasing its production capacity of rubber to meet resurging orders. In February, the company – the world’s largest synthetic rubber maker, according to the Times – started operations at a rubber factory in Yeosu, Korea, which has an annual capacity of 120,000 tons of butadiene rubber. 

In preparation for global tyre labelling schemes – which aims to lower carbon emissions to preserve the environment and will kick off in the European Union – Kumho Petrochemical plans to increase production of solution styrene-butadiene rubber to 84,000 tons from 24,000 annually. Solution styrene-butadiene rubber is a key rubber product with good abrasion resistance that increases its cost efficiency.

The increased output of synthetic rubber is expected to increase annual revenue by 800 billion won, the Times reported. Kumho is planning a joint company with JG Summit Petrochemical to build a butadiene plant to secure more materials for the long term. To avoid a shutdown due to the high consumption rate of electricity and steam energy for production, the paper added, Kumho will build another power plant at Yeosu that will operate alongside two existing ones. (Tire Review)