Kolon Industries plans to invest 260 billion won to set up a new tire cord plant in Vietnam as part of an effort to expand its automotive materials business. Kolon Industries announced on November 24 that it will establish a new PET tire cord production plant within the Bau Bang Industrial Complex in Binh Duong Province of Vietnam, which will have an annual production capacity of 36,000 tons.
To this end, Kolon Industries signed a memorandum with the Vietnamese local government on November 23. Tire cord is a textile material used to strengthen the tire's durability. As a high value-added product, tire cord promises higher profitability.
Kolon Industries plans to beef up its investment in automotive materials, including tire cord, in order to foster it as a new growth engine.
Kolon Industries officials said, "The establishment of a new tire cord plant in Vietnam would contribute to upgrading our production competitiveness in and outside Korea. We will step up efforts to expand our automotive materials business worldwide."