South Korea's Kolon to build tire cord plant in China

SEOUL, South Korea (Jan. 15)—Kolon Industries Inc. will invest $43 million this year to build a polyester tire cord plant in Nanjing, China, a company executive confirmed. The Nanjing facility will come on-stream in 2004 with an initial annual capacity of 5,000 metric tons that will more than double to 12,000 tons in later years, according to Sang Ki Lee, Kolon's manager Tire Cord Business Team 2. Kolon initially will supply the plant with yarn from its Korean operations, but eventually plans to produce yarn in China, Lee said. Kolon, Korea's No. 2 fiber maker after Hyosung Corp., also plans to manufacture industrial polyester fiber and spandex products in China in the near future. The company is targeting a 12-percent sales rise in 2003 to around $3.9 billion, putting it in on a par with its local rival.