Kolon Industries Strengthens Partnership with Michelin

2021 Michelin Excellent Supplier Award Winner

[Asia Economy Reporter Hwang Yoon-joo] Kolon Industries is strengthening its partnership with Michelin, the global tire industry leader, by leveraging its technological expertise in the petroleum resin sector.

Kolon Industries announced on the 27th that it received the '2021 Michelin Excellent Supplier Award' in recognition of the superior quality of its petroleum resin and its innovative establishment of a systematic global supply chain.

Kolon Industries currently supplies petroleum resin, an essential raw material mixed during tire manufacturing, to Michelin. Petroleum resin primarily enhances tire traction while improving compatibility, allowing rubber and other materials to blend well. Kolon Industries has been recognized as a 'reliable supplier that delivers good products on time,' having no defects in quality and consistently introducing new technologies.

Building on this award, the partnership between the two companies is expected to become even closer for the production of eco-friendly products. Since 2018, Kolon Industries has participated in the Carbon Disclosure Project (CDP) supply chain program and has been collaborating steadily with Michelin on the development of eco-friendly (bio-based) materials. Additionally, they have cooperated in preparation for the 'tire labeling' system, which assesses eco-friendliness through tire energy efficiency ratings, and are jointly responding to global carbon neutrality goals.

Kolon Industries' innovative petroleum resin supply chain, which responded swiftly to the global logistics crisis caused by COVID-19, also received praise from Michelin. Since early this year, Kolon Industries has established a new logistics hub in Rotterdam, Netherlands, supporting direct shipments to Europe. Despite the logistics chaos caused by the Suez Canal closure in March, the supply chain operated normally, ensuring timely deliveries. Furthermore, during the record-breaking cold wave in Texas, USA, in February, Kolon Industries maintained normal supply chain operations, supporting stable production at Michelin's local plant.

In June, Kolon Industries expanded its advanced petroleum resin production facility at its Yeosu plant in Jeollanam-do by 15,000 tons, achieving a total annual production capacity of 200,000 tons and rising to the world's second-largest manufacturer in the petroleum resin sector.