"5G and High-End Tire Demand Up... Kolon Doubles 'Magic Room' Aramid Expansion"

A researcher at Kolon Industries is examining Heracron, an aramid fiber product. Photo by Kolon Industries

[Asia Economy Reporter Choi Dae-yeol] Kolon Industries announced on the 24th that it will invest 236.9 billion KRW to double the production of aramid, a high-strength material used in optical cables and high-performance tires.

Aramid is known as the "magic thread" due to its high strength, capable of lifting a car even at a thickness of 5mm. The company's aramid production capacity was previously expanded from about 5,000 tons per year in 2017 to 7,500 tons last year. With this investment, the aramid production line in Gumi, Gyeongbuk, will increase to an annual capacity of 15,000 tons by 2023.

The decision to double production within three years comes as advanced industries that primarily use aramid, such as 5th generation (5G) mobile communications and electric vehicles, are experiencing rapid growth. Demand is increasing mainly in the North American market, with the company's factory operating rate and sales rate both approaching 100%.

Fiber structure diagram of optical cable using Heracron, an aramid fiber from Kolon Industries. Photo by Kolon Industries

Aramid fiber is lightweight yet strong and has excellent tensile strength, making it a reinforcing material that supports the interior of optical cables used for 5G. As online data usage increases, the demand for optical cables has grown, expanding the aramid market as well. In electric vehicles, aramid is used in UHP tires, which are heavy, have high instantaneous acceleration, and offer superior performance and cost. The aramid produced through this expansion is also expected to be applied to the company's core tire cord products, creating synergy.

The newly added production facilities incorporate digital and automated systems, implementing a smart factory process, the company explained. Real-time process analysis is possible at each production stage based on sensors, and the collected data is expected to improve quality and increase production efficiency. According to the company, the global market size for para-aramid, used in products requiring high strength, is about 70,000 tons in supply volume and is expected to grow at an annual rate of over 6% for the next five years.

Kang Igu, head of Kolon Industries, said, "We will aggressively invest to expand our market dominance," adding, "We will quickly respond to the increasing global demand for aramid in the post-COVID era and continue to generate high profits."

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