Kolon Industries Expands Production Capacity at Tire Cord Plant in Vietnam

▷ Expanded production capacity in Vietnam to consolidate its position as the world's No. 2 tire cord market

▷ Utilizes idle capacity at Nanjing plant in China to add one more plant with minimal investment

Kolon Industries is expanding its production capacity in Vietnam to strengthen its competitiveness in the global tire cord market.

Kolon Industries announced on the 14th that it would invest around 30 billion won to add a tire cord heat treatment facility at its Vietnam plant.

Tire cord is a fiber reinforcement that serves as the skeleton of a tire and is an important material that ensures the safety and performance of automobiles. Tire cord production is divided into three main stages: spinning, which creates fibers with secured properties; twisting and weaving, which gives the fibers strength and makes them into fabrics; and heat treatment, which ensures adhesion and shape stability.

Of these, heat treatment is the key process that determines not only the output of tire cords but also their performance, and on this front, Kolon Industries currently possesses world-class heat treatment technology. With the latest facility investment, the tire cord production capacity of Kolon Industries' Vietnam plant will be significantly expanded from 36,000 tons to 57,000 tons per year.

Kolon Industries plans to utilize idle capacity at its Nanjing plant in China for this expansion. Kolon Industries had previously shut down the production line at its Nanjing plant in 2023 in accordance with the land development plan of the Nanjing local government. Typically, a tire cord production line requires an investment of around 200 billion won, but by utilizing idle facilities in China, Kolon Industries was able to significantly reduce the investment cost to 30 billion won for a new plant. The new production line is expected to be operational by January 2027.

“This investment was decided to expand the supply of our tire cords to Southeast Asia, one of the world's largest tire production centers,” said a representative from Kolon Industries. “We will continue to invest and expand our presence in the tire cord market.”