Kumho Petrochemical Strengthens Synthetic Rubber Business by Making Kumho Polychem a 100% Subsidiary

[Asia Economy Reporter Kang Nahum] Kumho Petrochemical announced on the 11th that it will acquire a 50% stake in its affiliate Kumho Polychem from co-investor JSR.

Kumho Petrochemical held a board meeting on the same day and decided to acquire shares in Kumho Polychem to strengthen its core business portfolio in synthetic rubber.

Accordingly, Kumho Polychem will become a wholly owned subsidiary of Kumho Petrochemical starting in July.

Kumho Polychem was established in 1985 as a 50-50 joint venture between Kumho Petrochemical and the current JSR (formerly Japan Synthetic Rubber).

Kumho Polychem specializes in producing functional synthetic rubber such as EPDM used in automotive and industrial materials, and eco-friendly rubber (TPV). It holds the world's 4th largest production capacity based on EPDM.

Kumho Petrochemical stated, "Global EPDM producers are expected to adjust production capacity due to aging facilities, and the recovery of downstream industries such as automotive is becoming visible. Through acquiring shares in Kumho Polychem, we aim to proactively secure a competitive advantage."