Kolon Industries to invest $20.5 million in tyre cord plant
Kolon Industries to invest $20.5 million in tyre cord plant
South Korea's Kolon Industries has revealed it will invest 30 billion won ($20.5 million) in a tyre cord factory to scale up its manufacturing capacity in Vietnam.
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The new facility, announced on January 15, is slated to be put into operation in January 2027. The investment will increase Kolon Industries' tyre cord production capacity from 36,000 tonnes per year to 57,000 tonnes per year.
Tyre cords are fibre reinforcements that serve as the skeleton of tyres. They are essential materials that ensure the safety and performance of automobiles. Production is divided into three stages: spinning, which involves creating fibres with the required physical properties; twisting and weaving, which give the fibres strength and form them into fabrics; and heat treatment, which ensures adhesion to tyres and shape stability.
The company stated, "This investment is being made to expand the supply of tyre cords to Southeast Asia, one of the world's largest tyre production hubs. Kolon Industries will continue to expand its presence in the tyre cord market through ongoing investments."
The move follows the Kolon's closure of its plant in Nanjing, China in 2023. The company has greatly reduced the investment cost for the new factory by recycling equipment from the Nanjing plant for this expansion, allowing for a broader implementation strategy that can optimise resources and maintain financial efficiency while expanding production capabilities.
