Kolon Industries pump $20.5M into tire cord factory in Vietnam

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Kolon Industries pump $20.5M into tire cord factory in Vietnam

Kolon Industries' tire cord plant in Vietnam [KOLON INDUSTRIES]

Kolon Industries' tire cord plant in Vietnam [KOLON INDUSTRIES]

 
Kolon Industries will invest 30 billion won ($20.5 million) in a tire cord factory in Vietnam to increase its production capacity, the company said Tuesday.
 
The new facility, scheduled to begin operation in January 2027, will increase the production volume from 36,000 tons of the reinforcing material used to maintain the shape of the tire under a vehicle's weight to 57,000 tons per year.
 
The company will be utilizing equipment from its recently closed Nanjing plant in China to expand its production capacity. Kolon Industries closed its Nanjing factory in 2023 due to a land development plan by the local government.
 
"Using the idle equipment reduces the cost of investment from around 200 billion won typically needed for tire cord production line investment down to 30 billion won," the company said in a press release Tuesday.
 
"The investment decision was made to increase the supply of tire cords in Southeast Asia, a tire manufacturing stronghold in the world."
 
"We will be continuing our investment and increasing our presence in the tire cord market."
 
Kolon Industries, with a market share of some 10 percent, is the second-largest tire cord supplier in the world following HS Hyosung Advanced Materials.

BY CHO YONG-JUN [[email protected]]
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