Hyosung Group said on Tuesday that it will invest 1 trillion won (approximately $ 828 million) in the next 10 years to expand its carbon fiber business.
Hyosung plans to build nine new carbon fiber production lines at its plant in Jeonju, Jeollabuk-do to meet the rapidly growing demand for carbon fiber materials.
According to the company, additional production lines will increase the plant's annual production capacity from the current 2,000 tons to 24,000 tons. Currently, the factory has only one production line. It said that by 2028, this investment will create about 2,300 jobs.
Hyosung said the expansion will make it the world's third largest carbon fiber producer, with a 10% market share in 2028. It currently ranks 11th in the global market with a 2% share.
Cho Hyun-joon, president of Hyosung Group, and the Ministry of Trade, Industry and Energy and other carbon fiber-related companies (such as Korea Aerospace Industry Corporation and Iljin Light Metal Company) created good business. The environmental collective effort signed a memorandum of understanding.
South Korean President Moon Jae-in also visited the Jeonju plant to support the South Korean company to use its own technology to mass produce carbon fiber.
In 2011, Hyosung became the first Korean company to develop carbon fiber materials through independent technology.
During the visit, Wen Zaiyin called on Hyosung employees to have full confidence in the company's competitiveness to produce high-tech materials and promised full support.
Hyosung's latest move is in line with the government's so-called hydrogen economy and the country's latest efforts to localize high-tech materials in trade disputes with Japan.
"We have realized the potential of carbon fiber and are the first to develop our own technology. We will continue to build strong competitiveness in the chemical industry and strive to stay ahead of our competitors," said Zhao Xianjun.
Since 2013, Hyosung has been operating a carbon fiber plant in Jeonju, Jeollabuk-do, which can produce 2,000 tons of carbon fiber annually, and began building additional facilities at the plant in February to increase the plant's annual output to 4,000 tons.
Carbon fiber weighs about a quarter of the same volume of steel, but is ten times stronger. Because of its strength, it is considered a key material for building hydrogen tanks that must withstand high pressure.