SEOUL, South Korea—Kolon Industries is expanding its tire cord production facility in Vietnam, less than three years after opening the plant in Binh Duong Province, north of Ho Chi Minh City.
The South Korean industrial materials and chemicals supplier is increasing the plant's production capacity for PET tire cords to 19,200 metric tons a year, up from 16,800 tons.
The expansion work is scheduled to be completed in September 2022, bringing the group's total tire cord production to 103,200 tons per year, Kolon said in a recent statement.
The Korean supplier said the move will reinforce its tire cords business by securing a production base which offers both technology and price competitiveness.
The plant will feature an integrated production system, which includes all processes from raw material production to weaving, heat treatment and finished products.
Kolon opened its Vietnam tire cord plant in September 2018 and has ramped up to full production. The production unit, according to the company, has received quality approval from global tire companies.
The Korean group said the investment is ahead of an anticipated 3.5 percent annual growth in the automotive market from 2022.
In particular, it expects a medium- to long-term growth outlook for tire cords, as their consumption increases with the growth of eco-friendly cars.
"This is because hybrid cars, electric cars and hydrogen cars use 10-20 percent more tire cords to reinforce tire durability as the weight of the empty vehicle increases compared to the internal combustion engine," it said.