Local Governments Also Support Kolon Advanced Materials Expansion
Governor Lee Cheol-woo of Gyeongbuk Province (from the left), Jang Hee-gu, CEO of Kolon Industries, and Jang Se-yong, Mayor of Gumi City, are posing for a commemorative photo after signing an agreement on the 24th to provide additional support for aramid expansion.
[Asia Economy Reporter Choi Dae-yeol] Kolon Industries announced on the 25th that it has signed a memorandum of understanding (MOU) with Gyeongsangbuk-do Province and Gumi City to invest in the expansion of its advanced materials factory. Following Kolon's decision for a large-scale expansion, local governments have also agreed to provide budget support to assist.
The facility being expanded this time is aramid, considered an advanced industrial material. It is a high-polymer polyamide fiber about 5mm thick and weighs around 2 tons, strong enough to lift a car, earning it the nickname "magic thread." It is widely used in bulletproof vests, helmets, tire cords, optical cables, and as fiber-reinforced rubber materials or friction materials.
Kolon Industries decided in June to invest 236.9 billion KRW by 2023 to double the annual production capacity of the Gumi plant's production line from 7,500 tons to 15,000 tons. This large-scale expansion comes two years after two previous expansions in 2017 and 2020. Due to the recent surge in demand that supply cannot keep up with, such as optical cables for 5G mobile communications and ultra-high-performance tire materials for electric vehicles, the company proactively initiated facility investment.
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The scale of support from Gyeongbuk Province and Gumi City will be determined after future evaluations. The local governments expect that it will also have a positive effect on regional economic revitalization, including job creation, over the next two years. Jang Hee-gu, president of Kolon Industries, said, "We are grateful for the trust in Kolon Industries and the promise of generous support and investment."
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