#Nonwovens / Technical Textiles

2022-09-29

Kolon Industries targets the global tire cord market by Vietnam plant expansion

A panoramic view of Kolon Industries' tire cord factory in Vietnam (Photo: Business Wire)

Kolon Industries Inc. (KRX: 120110), top chemical materials and textile maker in South Korea, announced it has completed the expansion of its tire cord production plant in Binh Duong Province, Vietnam, and is speeding up to boost its global competitiveness.

A total production capacity of 103,200 tons with an expansion of 19,200 tons

The company said it has increased 19,200 tons of the annual capacity of PET (polyester) tire cord production from 84,000 tons to a total of 103,200 tons. This expansion is its second investment since the first expansion of 16,800 tons of PET tire cord Vietnam plant in 2018, and is expected to greatly improve the production efficiency once again.

Tire cords are high-strength fibers used as reinforcing materials for tires, which serve as frames for tires and keep them in shape. Tire cords are important as they affect the safety and performance of automobiles. Depending on the raw materials, there are PET, nylon, rayon, and steel tire cords. Kolon Industries produces PET tire cords, which are mainly used in passenger car tires.

Kolon Industries’ tire cord plant is located in Bau Bang Industrial Park, Vietnam. It brought in the latest production facilities and thus owns a consistent production system from yarn spinning to weaving, processing, heat treatment, and finished products. The Vietnam plant is currently in full operation after quality approval from global tire manufacturers.

Kolon Industries’ tire cord expansion is in line with the growth of the global tire market. Demand for replacement (RE, Replacement Equipment) tires increased last year, and shipments of new vehicle (OE, Original Equipment) tires increased this year. According to an automobile market research agency, the tire market is recovering to its pre-COVID-19 level from this year and is expected to grow at an annual average of 4%.

Kolon Industries has formed partnerships with major global tire companies since it started its tire cord business in 1973. Following the establishment of a new factory in Nanjing, China in 2004, the company secured international production bases with the best technology and price competitiveness through this continuous investment in Vietnam.

“This investment will help expand sales of Kolon Industries high-performance and high-value premium products, along with the global market dominance and tire cord business profitability,” a company official said.

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