Kumho Petrochemical Group Focuses on Nurturing Potential: Turning Possibilities into Opportunities

Establishing the Optimal Portfolio for the Future

Kumho Petrochemical Group is focusing on preparing for future uncertainties in the global petrochemical market, which is undergoing a period of transition. The group is analyzing intensifying industry trends to proactively identify future demand and is concentrating its capabilities on establishing the optimal portfolio that can be translated into profit.

Kumho Petrochemical is concentrating on expanding customer touchpoints for its high-performance synthetic rubber product, SSBR (Solution Styrene Butadiene Rubber), in line with the rapid growth of the electric vehicle tire market. SSBR has properties that can overcome the contradictory relationship between durability, wear resistance, and fuel efficiency?factors traditionally considered limitations in tire technology. As the weight of vehicle batteries increases and rapid acceleration and deceleration become more frequent, issues of tire durability and wear are coming to the forefront, leading to a rapid rise in market recognition of SSBR. Kumho Petrochemical plans to secure a leading position in the market with its specialized SSBR technology for electric vehicle tires.

Kumho Petrochemical's carbon nanotubes (CNT) are also gaining attention as materials for secondary batteries. As the shift toward electric vehicles accelerates, Kumho Petrochemical is closely monitoring global trends, including changes in industry policy, and is carefully timing the expansion of CNT production capacity and technology.

Kumho P&B Chemicals is strengthening partnerships across its core businesses such as 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 with the goal of completion by the end of this year. As soon as production becomes visible, the company plans to establish a concrete sales strategy.

In addition, DNK Chemtech, a joint venture with Dong Sung Chemical, is introducing PF boards?functional semi-noncombustible and core noncombustible insulation materials?through Kumho Petrochemical's premium window brand 'Hugreen.' In 2023, the product obtained the HB Mark and Environmental Product Declaration (EPD) certification, both awarded to eco-friendly construction materials, and in July last year, it received low-carbon certification, thus preparing for market expansion this year.

Furthermore, the group is working to create new opportunities by diversifying its portfolio into eco-friendly products and leisure sectors. Kumho Mitsui Chemicals completed an expansion of 200,000 tons in MDI, a polyurethane raw material, last year, establishing a production capacity of 610,000 tons. Amid intensifying supply competition among global manufacturers, the company plans to strengthen its market dominance with products that embody eco-friendly and sustainability values. Kumho Polychem is responding to long-term market changes by developing products that align with sustainable management, such as applying internationally certified recycled materials and utilizing bio-based materials in its specialty synthetic rubber EPDM.