Resin plant boost likely for Kolon IndustiesKolon Industries recently started the construction of facilities to increase petroleum resin production by 13,000 tons per year at its Yeosu plant in South Jeolla, the chemical company said Monday.
It hopes the investment, which will total 50 billion won ($49 million), will take it No. 2 globally in the sector. Completion is scheduled for January 2021.
Kolon’s petroleum resin plants in Ulsan, Yeosu and Seosan, South Chungcheong, have the capacity of 200,000 tons per year. The company anticipates the expansion will boost its annual revenues from petroleum resin alone to more than 700 billion won, said Kolon.
Petroleum resin, or hydrocarbon resin, is an aromatic compound made from oil-cracking by-products. Known for its tacky consistency, it has a wide array of industrial usages, such as for adhesives, paint and tires.
The expansion is not just about increasing production volume. The newly added facilities are capable of manufacturing higher value-added products that can be supplied to carmakers.
One of them is a chemical material recently developed by Kolon. The “high reactive resin” chemically reacts with moisture in the air to become more durable as time goes by.
According to Kolon, the product has higher resistance to heat and is more durable compared to its other products. In the past, vehicle components were mechanically drilled in. As chemical materials developed, that role was partly replaced by lightweight industrial adhesives.
With the new facilities, Kolon will also start production of a type of high-purity aromatic hydrocarbon resin, which the company explained can improve fuel efficiency. It did not disclose further details about the product.
BY SONG KYOUNG-SON [email@example.com]