Kumho Petrochemical, related companies to invest 6 trillion won

Park Chan-koo, chairman of Kumho Petrochemical [KUMHO PETROCHEMICAL GROUP]

Kumho Petrochemical and related companies will invest a total of 6 trillion won ($4.8 billion) over five years into materials used in electric vehicles (EVs) and hydrogen cars.

The related companies include Kumho P&B Chemicals, an epoxy resin producer 78.2 percent owned by Kumho Petrochemical, another subsidiary named Kumho Polychem and Kumho Mitsui Chemicals, a joint venture owned half by Kumho Petrochemical and Japan’s Mitsui Chemicals.

Kumho Petrochemical will spend 2.7 trillion won to expand production of materials like biosilica, carbon nanotube and engineering plastics.

The remaining 3.3 trillion won will go toward ramping up production of NB latex (acrylonitrile butadiene latex), epoxy resins and other core chemicals.

NB latex is a synthetic rubber mainly used in manufacturing and medical gloves. Demand for the compound has spiked since the pandemic as such gloves are more widely used for hygiene purposes.

Kumho Petrochemical is the world’s largest producer of the NB latex in terms of market share.

“We aim to overcome rising uncertainties in the global market through an analysis of the prospects of petrochemical industries and preemptive investment,” said Park Chan-koo, chairman of Kumho Petrochemical.

BY PARK EUN-JEE [park.eunjee@joongang.co.kr]