South Korea’s Kolon Industries is investing around US$20 million in its tyre cord factory in Vietnam to increase its production capacity by around 60% at the existing plant.
The new facility, scheduled to begin operation in January 2027, will increase the production volume from 36,000 tonnes of to 57,000 tonnes/year.
The company said it will utilise equipment from its recently closed Nanjing plant in China to expand its production capacity. Kolon Industries closed its Nanjing factory in 2023 due to a land development plan by the local government.
“Using the idle equipment reduces the cost of investment from around 200 billion won typically needed for tyre cord production line investment down to 30 billion won,” the company said in a press release.
“The investment decision was made to increase the supply of tyre cords in Southeast Asia, a tire manufacturing stronghold in the world.”
Kolon Industries has a market share of some 10% and is the second-largest tyre cord supplier in the world following compatriot manufacturer HS Hyosung Advanced Materials.