Kumho signs supply deal with two Japanese companies

Kumho Petrochemical headquarters in Jung District, central Seoul [KUMHO PETROCHEMICAL]

Kumho Petrochemical signed a supply deal with Japan’s Idemitsu Kosan and Sumitomo Corporation, the Korean rubber producer announced Wednesday.

With the signing of the deal, Idemitsu Kosan, Japan’s second-largest oil refiner, will supply bio-styrene monomer to Kumho Petrochemical.

Kumho plans to produce synthetic rubber for high-performance tires with Idemitsu Kosan's bio-styrene.

Sumitomo Corporation, a Japanese trading company, will take part in the deal as a coordinator between the two companies. The company will also further develop biopolymer businesses in Korea and Japan.

The specifics of the deal will be arranged by the end of next year before full-scale operations, according to Kumho.

The bio-styrene monomer uses bio-naphtha, which is based on biomaterials such as plants, as feedstock. Traditional fossil-based naphtha is normally extracted from crude oil and is used for producing ethylene, butadiene and more.

Kumho Petrochemical aims to cut carbon emissions by ramping up bio-styrene monomer applications in its rubber manufacturing business.

“The three industry-leading companies from Korea and Japan are putting in the effort to achieve co-prosperity in good faith, within the framework of cooperation,” said a spokesperson for Kumho Petrochemical.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]