Kolon Industries (120110.KS) is strengthening its business portfolio around high-value products in the second half of the year to secure mid- to long-term growth drivers.
The company said on the 22nd that it is raising the competitiveness of its existing businesses through operational efficiency (OE) and AI transformation (AX), while expanding into medical and AI and semiconductor materials.
The company recently completed an expansion of its polyurethane (PU) artificial leather production line at its Kimcheon No. 1 plant in North Gyeongsang Province. PU artificial leather is a high-value material that replicates the texture and feel of natural leather while offering superior processability and durability. Its importance as a substitute is growing as automakers cut 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 (POM) product. POM is an engineering plastic used across a range of advanced industries, including automobiles, electrical and electronics, and medical applications, owing to its low friction coefficient, strong wear resistance and dimensional stability.
Kolon Industries plans to begin commercial supply of KOCETAL ECO-E, which is based on renewable energy, to the medical market in the fourth quarter — a world first — while also expanding sales to the automotive and electrical and electronics industries.
This month, Kolon Industries also completed an expansion of its production line for modified polyphenylene oxide (mPPO), a future growth driver, at its Kimcheon No. 2 plant. mPPO is used to make copper-clad laminate (CCL), a core material in semiconductor circuit boards. With its superior heat suppression compared with epoxy resin, mPPO is seeing rising demand alongside growth in the AI and semiconductor industries, and the company expects sales of about 200 billion won from mPPO alone once the new facility is in full operation.
"Based on our accumulated materials technology and pre-emptive investment, we will identify new business opportunities in growth markets and translate them into tangible results," said Heo Sung, chief executive of Kolon Industries.
