Kolon Industries said on Thursday that it will spend 236.9 billion won to expand its production capacity of aramid fiber, a material used in car tires.
Once the expansion is completed in 2023, its production capacity will increase to 15,000 metric tonnes from the current 7,500 metric tonnes, the company said.
Kolon said it plans to aggressively expand into advanced industries such as electric vehicles with the expanded production capacity.
It also said it may commence additional investments into aramid at a later date.
It will especially push its aramid fiber brand Heracron. The company claims Heracron offers five times the tensile strength of iron of the same weight. It can also withstand 500 Celsius heat. These characteristics make the fiber an optimal high performance material for electric cars that has fast acceleration rates, Kolon said.
Kolon started its aramid business in 2005.
Last year, the Korean firm recorded 4.03 trillion won in sales and operating income of 152.4 billion won, a drop of 8.4% and 11.9%, respectively, from 2019. The company said the pandemic dented its earnings.