Kumho Petrochemical "Turning All Possibilities into Opportunities"... Strengthening Portfolio

Strengthening Eco-Friendly and Leisure Businesses Following Materials Sector

Amid an unprecedented turning point in the global petrochemical market, Kumho Petrochemical Group has established a strategy to strengthen its competitiveness by leveraging its core and innovative businesses to prepare for future uncertainties. The group plans to accelerate portfolio diversification by not only focusing on the traditionally strong materials sector but also expanding into eco-friendly products and leisure businesses.

Kumho Petrochemical is concentrating on expanding customer touchpoints for SSBR (Solution Styrene Butadiene Rubber), a high-performance synthetic rubber product linked to the rapid growth of the electric vehicle tire market. SSBR possesses characteristics that can overcome the contradictory relationship among durability, wear, and fuel efficiency?factors traditionally seen as limitations in tire technology.

Kumho Petrochemical Ulsan Rubber Plant (Photo by Kumho Petrochemical)

In particular, with the full-scale transition to electric vehicles, issues related to tire durability and wear have emerged due to increased battery weight in the vehicle body and the nature of electric power causing frequent rapid starts and stops. Awareness of SSBR is rapidly increasing not only within the industry but also among general consumers driving electric vehicles. Kumho Petrochemical plans to secure market leadership with SSBR technology specialized for electric vehicle tires.

Kumho Petrochemical’s carbon nanotubes (CNT) are also gaining prominence as materials for secondary batteries. Initially used as composite materials to enhance the strength of core products such as synthetic rubber and synthetic resin, CNT materials have found new positioning as conductive additives for cathode and anode materials due to the growth of the secondary battery market. Kumho Petrochemical is closely monitoring global trends, including industrial policy changes, focusing on the paradigm shift toward electric vehicles, and is carefully coordinating the timing for expanding CNT production capacity and technology.

Kumho P&B Chemicals is strengthening partnerships across its core businesses, including BPA and epoxy, to prepare for the future. OCI Kumho, a joint venture established in 2021 with OCI for the ECH business, a raw material for epoxy resin, is building facilities in an industrial complex in Malaysia, aiming for completion by the end of this year. Once production becomes visible, specific sales strategies will be formulated.

DNK Chemtech, a joint venture with Dongsung Chemical, is introducing PF boards, functional semi-nonflammable and core semi-nonflammable insulation materials, through Kumho Petrochemical’s premium window brand ‘Hugreen.’ In 2023, it obtained the HB mark and Environmental Product Declaration (EPD) certification for eco-friendly building materials, and in July last year, it acquired low-carbon certification.

Additionally, the group is accelerating portfolio diversification into eco-friendly products and leisure sectors. Kumho Mitsui Chemicals, which completed a 200,000-ton expansion of polyurethane raw material MDI last year to establish a production capacity of 610,000 tons, plans to enhance its market dominance through products embodying eco-friendly and sustainability values amid intensifying supply competition among global MDI makers. To this end, it is actively developing eco-friendly and low-carbon MDI products and responding to various environmental certifications to boost competitiveness.

Kumho Polychem is also developing products aligned with sustainable management by applying recycled materials conforming to international standards and utilizing bio-based materials in EPDM, a special synthetic rubber. Through this, it aims to respond to long-term market changes and introduce new parts made of thermoplastic elastomers (TPE) dedicated to eco-friendly vehicles, which offer excellent durability and insulation, in line with the growth of the eco-friendly future mobility-related materials industry.

Kumho Resort is currently discussing ways to enhance customer experiences reflecting this year’s travel trends. The golf business division, which operates Asiana CC, is conducting various environmental improvement projects aiming for eco-friendly golf course certification. These projects include landscaping to improve aesthetics, improving turf growth environments through fairway topdressing, purifying lake water using microorganisms, and enhancing bunker drainage during rainfall. The resort division plans to offer customers diverse experiences with the special charm and fun of facilities such as the latest yachts in Tongyeong and Seorak Park Golf Course. Additionally, the three water parks, including Asan Spavis, and the caravan and glamping facilities at Asan Spafore are actively preparing to welcome customers ahead of the full travel and leisure season following the winter period.