Kumho Petrochemical innovates and diversifies
![Gaining momentum from last year’s success, Kumho Petrochemical aims to take another leap forward. [Kumho Petrochemical]](https://koreajoongangdaily.joins.com/data/photo/2021/04/02/e4d72de9-36a7-4050-abe7-970f388dde04.jpg)
Gaining momentum from last year’s success, Kumho Petrochemical aims to take another leap forward. [Kumho Petrochemical]
Kumho Petrochemical posted operating income of 740 billion won ($656 million) despite the Covid 19 pandemic, more than double from the previous year. The company has also seen a steady rise in its credit rating for the last decade or so, from BBB- in 2009 to A0 in 2019, and improved its financial structure by lowering the debt-to-equity ratio from 660 percent to 73 percent during the same period. Its debt ratio has remained under 100 percent ever since.
Based on its sound financial structure, Kumho Petrochemical is innovating and diversifying its business portfolio to up its game in the fast-changing global market. High value-added products take up more than 50 percent of the company’s business as of 2020, expanded from a mere 20 percent in 2012.
Kumho Petrochemical is leading the industry in the NB latex (acrylonitrile butadiene latex) market, a synthetic latex used mainly for health care and medical purposes. The company secured the world’s largest NB latex production capacity by aggressive investments and early market entry, and is planning to maintain its market share of some 30 percent while further expanding production capacity.
NB latex is part of Kumho Petrochemical’s “core business,” which the company is intensively investing in. Core business products include the company’s flagships such as epoxy and solution styrene butadiene rubber.
Kumho Petrochemical aims to diversify and optimize its “base business” products as well, for example synthetic resin.
Kumho Petrochemical seeks to make a foray into high-growth and eco-friendly market through merger and acquisition opportunities. In a bid to strengthen the business portfolio, the company will develop and secure new businesses, creating synergy with its promising products such as carbon nanotube, eco-friendly insulator and engineering plastics.
By Shin Ha-nee [shin.hanee@joongang.co.kr]
with the Korea JoongAng Daily
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