Kumho Petrochemical to Invest 256 Billion KRW to Expand NB Latex Production by 240,000 Tons

Once expansion is complete, total capacity will increase to 950,000 tons... Global No.1 production capability

[Asia Economy Reporter Hwang Yoon-joo] Kumho Petrochemical has decided to expand its NB latex production capacity by 240,000 tons. This strategy aims to respond to the rapidly increasing demand and solidify its position as the global leader in production capacity.

Kumho Petrochemical announced on the 22nd that its board of directors has approved an investment to expand NB latex production by 240,000 tons. The total investment cost is 256 billion KRW. Once the ongoing 70,000-ton NB latex expansion is completed, the company will proceed with the newly approved 240,000-ton expansion. Upon completion at the end of 2023, Kumho Petrochemical will have a total NB latex production capacity of 950,000 tons, combining the 710,000 tons to be completed this year with the additional 240,000 tons.

Kumho Petrochemical also plans to consider an additional investment to expand production by 470,000 tons depending on demand conditions. If this expansion is completed, the company will secure a total NB latex production capacity of 1.42 million tons, which is double the 710,000 tons capacity to be established by the end of this year.

Kumho Petrochemical has also secured technological superiority. It is the only company in the industry to possess continuous production process technology, which offers cost competitiveness compared to the conventional batch process and allows for stable mass production of uniformly high-quality products. Furthermore, the continuous process is advantageous for producing high molecular weight polymer products, which is essential for achieving the high tensile strength critical to latex gloves. Additionally, Kumho Petrochemical sets the standard in the high-quality NB latex market with various proprietary technologies, including latex odor treatment and excellent color expression techniques.

Baek Jong-hoon, CEO of Kumho Petrochemical, stated, "As the utilization and demand for NB latex are expected to increase, we plan to prepare for stable supply through proactive expansion. This expansion will further strengthen Kumho Petrochemical’s competitive edge as a leader in the synthetic rubber sector, including NB latex."

Kumho Petrochemical’s NB latex is increasingly used not only for medical gloves but also for industrial and culinary purposes, showing more diverse applications than in the past. The COVID-19 pandemic, which raised awareness of hygiene, has led to global recognition of NB latex as an essential hygiene material, including in China, resulting in continuous demand growth. Moreover, NB latex gloves, a type of synthetic rubber, do not cause the skin protein allergy reactions associated with natural rubber latex gloves, making them a popular alternative to traditional gloves.