Overcoming Downturn by Strengthening Specialty Products
Securing Leadership in High Value-Added Product Markets Through Capacity Expansion
Expanding Eco-Friendly and Leisure Businesses to Secure Future Growth Drivers
Kumho Petrochemical Group is accelerating the advancement of its business structure to focus on high value-added products amid prolonged oversupply in the global petrochemical industry and ongoing internal and external uncertainties. The company’s strategy is to strengthen its fundamentals through fundamental structural reform, leveraging its unique technological capabilities and business experience, rather than simply responding to short-term market conditions. The core of this reform is enhancing the competitiveness of high-performance specialty products.
According to industry sources on March 3, Kumho Petrochemical recently completed an expansion of its Solution Styrene Butadiene Rubber (SSBR) plant, a key material in the era of electric vehicles, increasing annual capacity by 35,000 tons. Full-scale commercial operation began in the first quarter of this year.
SSBR is a high-performance synthetic rubber that simultaneously improves tire wear resistance, fuel efficiency, and durability, making it well-suited for electric vehicles with heavy batteries. The company plans to further expand its differentiated product lineup to increase the proportion of specialty products.
Kumho Mitsui Chemicals is working to increase its MDI production capacity. The company has decided to expand output by 100,000 tons using debottlenecking techniques to improve existing facilities. Following a 200,000-ton expansion in 2024, it will secure a total production capacity of 300,000 tons over two years. By utilizing proprietary process technology, Kumho Mitsui Chemicals aims to enhance both investment efficiency and cost competitiveness.
Kumho Polychem has also completed a 70,000-ton expansion of its EPDM facility, establishing an annual production system of 310,000 tons. EPDM is a special synthetic rubber with excellent heat, weather, and chemical resistance, and is widely used in the automotive and industrial sectors. In line with increasing global demand, the company plans to boost profitability by expanding specialty products and innovating production processes.
Kumho P&B Chemicals is diversifying its portfolio in response to market changes. The company has secured stability through long-term supply contracts with major customers, while targeting high value-added markets with environmentally friendly water-based epoxy products. In the building materials sector, it has expanded eco-friendly certification by distributing PF boards through a joint venture under the premium window brand ‘Huegreen’.
Kumho Resort, the group’s leisure division, is also enhancing its competitiveness by upgrading facilities and expanding experiential content. By strengthening amenities such as golf courses, water parks, yachting, and glamping, the company is working to broaden the overall customer experience.
Despite ongoing oversupply and sluggish demand, Kumho Petrochemical Group continues to pursue a strategy centered on technology and quality. The industry is watching closely to see whether the expansion of specialty products and process advancement will translate into stable performance and a foundation for future growth.
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