Strengthening Expertise in Automotive Materials and Components Solutions
Kolon Industries will strengthen its expertise in the automotive materials and components business by splitting and merging the automotive materials and components business of its subsidiary Kolon Glotech.
On the 23rd, Kolon Industries held a board meeting and resolved to split and merge the automotive materials and components business of Kolon Glotech. Established in 1987, Kolon Glotech is a comprehensive materials specialist company supplying automotive and lifestyle materials.
The automotive materials and components division of Kolon Glotech will be split off and then absorbed and merged into Kolon Industries. Kolon Industries is the largest shareholder, holding 98% of the shares including treasury stocks of Kolon Glotech.
Once the merger is completed in the first quarter of next year, Kolon Industries will cover the entire business range from automotive interior materials to components, and will also secure the sales network held by Kolon Glotech.
According to Zion Market Research, a market research firm, the global automotive market is expected to grow about 4% annually, reaching approximately KRW 5300 trillion (USD 3.969 trillion) by 2030. The demand for future eco-friendly vehicles such as electric and hydrogen cars, as well as eco-friendly materials, is rapidly increasing, and Kolon Industries, which has strengths in this field, is expected to encounter new growth opportunities.
Kolon Industries possesses top-level chemical material technology that can satisfy any physical properties required for automotive interior materials such as waterproofing, soundproofing, durability, and heat resistance. Based on this, it also holds various recyclable materials and low-carbon products, enabling it to provide customized eco-friendly solutions to customers pursuing sustainability.
Through this merger, Kolon Industries is expected to secure a sales network covering major global markets including the United States, China, India, Europe, and Latin America, becoming a new growth engine. One of Kolon Industries’ key products, airbags, is expected to expand exports through Kolon Glotech’s sales network in India, and the high-quality artificial leather product Shamood, which is gaining attention in the luxury car market, is also expected to gain momentum in growth by expanding contact points with customers in the North American region.
A Kolon Industries official said, "The merger of Glotech’s automotive materials and components business aims to strengthen expertise in the automotive materials and components business to meet rapidly changing market demands," adding, "We will establish ourselves as a more trusted partner by providing customized automotive materials and components solutions that meet the diverse needs of our customers."
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