'202002' Johyunjoon-ho 'Season of Fruition'... Global Leadership Hit the Mark

Carbon Fiber Expansion Line Fully Operational

Production Capacity Doubled... 4,000 Tons Annually

New Chemical Plant Also Operational in Vietnam

Realizing Profits from Future New Businesses in Full Swing

[Asia Economy Reporter Park So-yeon] Hyosung Group has accelerated its next-generation businesses by newly operating advanced materials and chemical plants domestically and internationally since the beginning of this month. As Hyosung Group, which has rejoined the '1 trillion won operating profit club,' draws attention, its next-generation businesses are expected to generate profits soon, highlighting the steadfast owner management.

According to the industry on the 13th, Hyosung Advanced Materials has expanded its carbon fiber line at the Jeonju plant in Jeollabuk-do to an annual production capacity of 2,000 tons and began full-scale operation earlier this month. The new line was added to the existing site, increasing the total carbon fiber production capacity to 4,000 tons annually.

Carbon fiber is called the 'rice of future industries' as it can be applied to all industries where steel is used, from automotive interior and exterior materials, construction reinforcements, to sports and leisure fields, and advanced future industries such as space and aviation. Technology transfer is difficult, and independent development is challenging, so only a few companies worldwide possess this technology. Recently, it has gained more attention as a core material in the hydrogen economy era. Hyosung also plans to further expand its carbon fiber production lines. By 2028, it aims to increase the number of carbon fiber production lines to 10. If this plan proceeds as intended, Hyosung's global market share in carbon fiber will leap from the current 11th place (2%) to 3rd place (10%).

Overseas production of next-generation chemical products is also imminent. Hyosung Chemical will start producing 300,000 tons of polypropylene (PP) and propane dehydrogenation (PDH) at its local plant in Ba Ria-Vung Tau Province, southern Vietnam, from mid-month. This production line was completed at the end of last year and completed trial operations in January this year.

PP, used as a raw material for plastics, is made from propylene, and Hyosung Chemical extracts propylene from propane gas, a liquefied petroleum gas (LPG). Since propane prices are cheaper than naphtha, it has a cost competitiveness advantage over other chemical companies extracting propylene from naphtha cracking centers (NCC).

In particular, through the Vietnam plant, it is expected to strengthen competitiveness by supplying PP at low costs to the rapidly growing plastic demand markets in Southeast Asia. The Vietnam production benefits from tax incentives from the local government, and exports to Southeast Asia, China, and India are subject to zero tariffs, which is also advantageous. Additionally, there are forecasts that the Vietnamese government will gradually raise tariffs on Chinese-made PP up to 10%, making Hyosung Chemical's early entry into the local market promising. The effects of the expansion are expected to be reflected in next year's performance.

The market evaluates that Hyosung Group's core businesses have been synergizing by aligning with market demand forecasts and movements, attributing this to Chairman Cho Hyun-joon's global strategy, now in his fourth year in office. Chairman Cho, who graduated from the prestigious St. Paul’s School in the U.S., earned a political science degree from Yale University and a master's degree in political science from Keio University in Japan, is recognized for his solid global network, which contributes to market forecasting and overseas expansion. Those around him say he is ahead in understanding global affairs.

Since the late 1990s, Chairman Cho has directly laid the foundation for a global production network in core businesses by leading the C (China)-project in the spandex sector to target the Chinese domestic textile market. These overseas production subsidiaries have become a crucial foundation driving Hyosung's performance in recent years. Subsequently, the entry into the Vietnamese market was also swift, establishing Hyosung as one of the most recognized Korean companies alongside Samsung Electronics in Vietnam.

An industry insider said, "The steadfast ownership that allows bold investment in future new businesses contributes to enhancing Hyosung’s business longevity, which focuses on materials," adding, "Last year, profits in new business sectors such as carbon fiber and aramid significantly improved, becoming a stepping stone for performance enhancement."

This content was produced with the assistance of AI translation services.