Kumho seeks to become No. 1 global rubber supplier

Kumho Petrochemical is having one of its busiest years as it strives to become a global leader.
Kumho Petrochemical and its affiliates Kumho P&B Chemicals, Kumho Polychem, Kumho Mitsui Chemicals, Kumho Trading and Kumho Port Management recently moved its headquarters to Signature Towers Seoul in Jung-gu to signal a new beginning.
The company, under the leadership of Chairman Park Chan-koo, has drawn up a blueprint for its future that sees itself as a global chemical-making titan marking over 20 trillion won in annual revenue with 20 original high-quality products that are No. 1 in their respective sector by 2020.
To achieve the goal, Kumho is strengthening its traditional cash cows of synthetic rubber and resins while looking for new momentum in fine chemicals, electrochemicals, energy and building materials. It also plans to start production for precision materials like carbon nanotubes and bio-ethanol.
Park vowed to spend 50 billion won on more facilities at the start of the year. Ultimately, the firm plans to increase price competitiveness by increasing output.
Reacting nimbly to demand from the world’s automobile industry, which is starting to recover from the recession, Kumho Petrochemical has been increasing its production capacity of rubber to meet resurging orders.
In February, the world’s largest synthetic rubber maker completed and started operating a rubber factory in Yeosu, which will make 120,000 tons of butadiene rubber annually. Products from the factory are already being distributed to global tire makers across the global, said Kumho.
To react to the global tire labeling scheme, the company plans to increase production of solution styrene-butadiene rubber to 84,000 tons from 24,000 yearly. The European Union will be the first to launch a tire labeling scheme, aimed to lower carbon emissions to preserve the environment. Solution styrene-butadiene rubber is a key rubber product with good abrasion resistance that increases its cost efficiency.
The increased output of synthetic rubber is expected to increase annual revenue by 800 billion won. Kumho is planning a joint company with JG Summit Petrochemical to build a butadiene plant to secure more materials for the long term.
To avoid a shutdown due to the high consumption rate of electricity and steam energy for production, Kumho will build another power plant at Yeosu that will operate alongside two existing ones.
Research and developments for new technologies such as energy-conservative asphalt construction and making carbon nanotube materials that go into automobiles and airplanes are ongoing, said the rubber maker.
Following the global movement of companies to lead in caring for the environment, Kumho has been strictly following global standards to prevent making chemical products that harm the ozone. It also recycles 80,000 tons of used tires annually and mixes them with coal to provide energy.