Hyosung Advanced Materials to Supply Carbon Fiber Long-Term to Hanwha Solutions

[Asia Economy Reporter Hwang Yoon-joo] Hyosung Advanced Materials Co., Ltd. signed a long-term contract on the 2nd to supply high-strength carbon fiber used in high-pressure vessels with Hanwha Solutions Co., Ltd.

Hyosung Advanced Materials announced that it has signed a long-term contract to supply Hanwha Solutions with high-strength carbon fiber used to reinforce hydrogen vehicle fuel tanks for six years starting from 2021. The supply scale amounts to approximately 160 billion KRW.

Through this contract, Hyosung Advanced Materials, having secured stable order volumes from major customers, can expect continuous growth in the carbon fiber sector. Although the carbon fiber market is led by Japan and the United States, Hyosung Advanced Materials’ purely domestic carbon fiber, based on superior high-strength physical properties compared to competitors, has focused on high-pressure vessel applications and has been supplying major global high-pressure vessel companies for several years.

Carbon fiber is used in vehicle CNG (Compressed Natural Gas) fuel tanks and hydrogen fuel tanks due to its safety and eco-friendliness. Fuel tanks require high-strength carbon fiber because gases need to be injected at high pressures of several hundred atmospheres. In particular, compared to conventional metal tanks, the reduced weight improves driving performance and reduces emissions. Due to its characteristics of high strength, high elasticity, and lightweight, carbon fiber is expected to be increasingly applied to various uses such as urban air mobility (UAM), aerospace, and marine fuel tanks.

Hyosung Advanced Materials began full-scale carbon fiber development in 2008 and started production at its Jeonju plant in 2013, launching the carbon fiber brand ‘TANSOME®’. Hyosung Advanced Materials plans to invest 1 trillion KRW in the Jeonju plant by 2028 to secure a carbon fiber production capacity of 24,000 tons per year. Currently, the plant is operating with an expanded capacity of 4,000 tons.

Hwang Jung-mo, CEO of Hyosung Advanced Materials, stated, "Carbon fiber is a key material for responding to climate change and promoting the hydrogen economy," adding, "We will promote the realization of safe and clean new mobility through TANSOME’s material technology."