Kolon Industries to Invest 34 Billion KRW in New mPPO Production Line to Target AI Electronic Materials Market

Targeting Completion in Q2 2026 at Gimcheon Plant 2
High Value-Added Electronic Material for Copper-Clad Laminates
Electrical Insulation Performance About Five Times Higher Than Epoxy Resin

Kolon Industries is accelerating its efforts to enter the next-generation electronic materials market, which includes future technologies such as artificial intelligence (AI) and sixth-generation (6G) communications. The company is expanding its supply in earnest by newly establishing a production facility for the core material, modified polyphenylene oxide (mPPO).

Kolon Industries announced on the 27th that it will invest approximately 34 billion KRW to build an mPPO production facility at its second plant in Gimcheon, Gyeongbuk. The facility is scheduled for completion in the second quarter of 2026. mPPO is a high value-added electronic material applied to copper-clad laminates. Copper-clad laminates are a key component of printed circuit boards and serve to block interference between electrical signals transmitted through the circuit. In particular, for high-performance printed circuit boards used in AI semiconductors and 6G communication devices, insulation properties that reduce signal loss are essential.

Kolon Industries announced on the 27th that it will invest approximately 34 billion KRW to establish a production facility for modified polyphenylene oxide (mPPO) at its second plant in Gimcheon, Gyeongbuk. The photo shows mPPO (right) and the copper-clad laminate applying it (left). Kolon Industries
Photo by Kolon Industries

mPPO is a high-performance material that meets these requirements, and it is known to offer electrical insulation performance approximately three to five times better than conventional epoxy resins. It is effective in minimizing electrical signal loss, thereby reducing heat generation and slowing down speed degradation.

The company also expects a positive market outlook in the future. According to Cisco's 'Annual Internet Report,' global data usage is projected to increase from 470 exabytes (EB) per month in 2024 to approximately 900 EB in 2030. Accordingly, demand for mPPO is also expected to more than double during the same period, rising from about 4,600 tons to 9,700 tons.

A Kolon Industries official stated, "This investment is a proactive measure to respond to the growing electronic materials market," adding, "Kolon Industries plans to continue enhancing profitability by expanding its portfolio of high value-added products."