The expansion is expected to cost $38.5 million and will bring the company's total carbon fiber production capacity to 9,000 metric tons per year.
Hyosung's fourth carbon fiber production line, with a capacity of 2,500 tons, will be added to the company's existing production line in Jeonju, South Korea.
On March 29, foreign media reported that Hyosung Advanced Materials announced that it would invest US$38.5 million to build a fourth PAN-based carbon fiber production line at its Jeonju base, with an additional capacity of 2,500 tons.
The new line is expected to be completed and put into operation in April 2023. By then, Hyosung Advanced Materials' total production capacity of PAN-based carbon fibers will reach 9,000 tons.
According to Hyosung, the expansion is aimed at responding to the needs of the automotive energy storage (hydrogen/natural gas) market. The revitalization of the hydrogen economy, in particular, is expected to drive the demand for pressure vessels for storing gases. Applications for carbon fiber pressure vessels include hydrogen fuel vehicles, hydrogen refueling stations, and hydrogen transportation.
Hyosung launched its own brand of carbon fiber TANSOME in 2011 and has been producing it at its Jeonju base since 2013.
In 2019, Hyosung announced a strategic plan of "$820 million in ten years", planning to expand the total production capacity to 24,000 tons by 2028, ranking among the top three carbon fiber manufacturing companies in the world, occupying more than 10% of the global market.