Kumho Petrochemical announced a major investment plan to inject 6 trillion won (37.6 billion yuan) into existing and new businesses over the next five years.
This includes KRW 3,300 billion investment in its "core business areas," including the production of nitrile latex (NB latex) and the manufacture of styrene solution butadiene rubber (SSBR). Another KRW 2.7 trillion will be invested in "future growth engines," such as carbon nanotubes for secondary battery materials and engineering plastics for electric vehicles.
Nitrile latex (NB latex) is a key material for rubber gloves, "with the continuous strengthening of global hygiene concepts, latex gloves are expected to become a representative medical and health product along with masks," Kumho said.
The group said the investment would be used to fill a "technology and production capacity gap" in the material. Expand NB latex production to maintain its "global leadership".
SSBR's investment in business aims to be number one in Asia. In addition to SSBR capabilities, Kumho said it will also invest in its "fine chemical products" such as synthetic rubber antioxidants and vulcanization accelerators. Later this year, the group announced that it would increase its SSBR capacity from 63 kilotons per year (ktpa) to 123ktpa by the end of 2022, "more than doubling".
It added: "We are discussing detailed strategies to strengthen global competitiveness and are developing strategies to maximize profitability." ”
Last June, Kumho announced a "€190 million radical investment" to build a new nitrile latex plant at its Ulsan Petrochemical plant.
At the same time, it plans to respond to rapidly changing industry trends by promoting the digitalization of its business.
Source: China Synthetic Rubber Industry Association
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