Kolon Industries (120110.KS) is accelerating its medium- to long-term growth strategy in the second half of this year by strengthening its portfolio around high-value products.
The company said on the 22nd that it is raising the competitiveness of existing businesses through operational efficiency and AI transformation, while expanding into new areas such as medical materials and AI and semiconductor materials. The aim is to translate materials technology developed through research and development into an upgraded business portfolio that widens its growth base.
The company recently completed an expansion of its polyurethane artificial leather production line at its Gimcheon Plant No. 1 in North Gyeongsang Province. PU artificial leather is a high-value material that reproduces the texture and feel of natural leather while offering superior processability and durability. It is used in a range of interior components including car seats, door trim and consoles. Its importance as a substitute material is growing as automakers reduce their use of natural leather in line with eco-friendly trends.
Last month, the company said it commercialized KOCETAL ECO-E, an eco-friendly polyacetal product. POM is an engineering plastic applied across advanced industries including automobiles, electrical and electronic goods, and medical products, on the strength of its low friction coefficient, high wear resistance and dimensional stability.
Kolon Industries produced KOCETAL ECO-E using e-methanol derived from renewable energy instead of fossil fuel-based methanol, making it an eco-friendly POM. In the fourth quarter, the company will begin mass production of low-carbon POM and supply it commercially to the medical market for the first time in the world. It plans to expand sales to the automotive and electrical and electronic sectors going forward.
This month, Kolon Industries also completed an expansion of its production line for modified polyphenylene oxide, a future growth driver, at its Gimcheon Plant No. 2. mPPO is used to make copper clad laminate, a key material for semiconductor circuit boards.
For products that process large volumes of data at high speed, such as AI accelerators and sixth-generation communication devices, low dielectric performance is critical to reducing the speed loss and heat generated by electrical signal loss. mPPO offers low dielectric performance roughly three to five times better than epoxy resin, and demand is rising alongside growth in the AI and semiconductor industries. Kolon Industries expects mPPO alone to generate about 200 billion won ($143 million) in sales once the new equipment at Gimcheon Plant No. 2 goes into full operation.
"The shift toward high-value products goes beyond simply broadening our product lineup; it is a process of raising the company's future competitiveness," Kolon Industries Chief Executive Officer Heo Sung said. "Based on our accumulated materials technology and pre-emptive investment, we will identify new business opportunities in growth markets and turn them into tangible results."
