South Korea’s Hyosung announced on Tuesday it will invest 1 trillion won ($829 million) by 2028 to expand its carbon fiber production capacity, vowing to raise the country’s competitiveness to lessen dependence on other countries.
To achieve this, it will put advanced materials, crucial for the “hydrogen economy,” at the forefront of its business portfolio.
The textile giant plans to start 10 production lines for carbon fiber manufacturing at its plant in Jeonju City, capable of producing 24,000 tons of the material a year— the largest in the world for a single plant.
The 1 trillion-won ($829 million) investment will help Hyosung become the third-largest carbon fiber producer in the world, with an estimated market share of 10 percent. Currently, the company is the 11th-biggest player in terms of carbon fiber production size, supplying 2 percent.
Hyosung was the first Korean company to develop carbon fibers in 2011. It was the fourth country to develop homegrown carbon fiber technology, after Japan, the US and Germany. The country is a leader in hydrogen energy technology, particularly in the auto sector, but it has been depending on carbon fiber made in Japan for production of fuel storage tanks.
Hyosung signed a memorandum of understanding with the Ministry of Industry, Trade and Energy, Iljin Composite, a local supplier of hydrogen tanks, and Korea Aerospace Industries, the nation’s sole aircraft manufacturer, to forge an alliance for carbon fiber tests.
The plan came amid growing market demand for carbon fiber. By 2030, the market for hydrogen fuel tanks is estimated to grow more than 120 times, according to the company.
In 2013, Hyosung started operate a carbon fiber plant with annual production capacity of 2,000 tons in Jeonju. It has been building another 2,000-ton carbon fiber plant in Jeonju since February.
Hyosung Chairman, Cho Hyun-joon said, “the company would continue investments in the material to contribute to the state’s efforts in strengthening Korea’s competitiveness in material businesses.”
“(Hyosung) started to exclusively develop carbon fiber, having its potential in mind,” he said. “As the market potential of carbon fiber is infinite, and also with (the government) opening (the door) for the new market of carbon fiber through the hydrogen economy (initiative), we will take part in building South Korea (into) a material powerhouse by nurturing the business.”
In a comprehensive plan unveiled in January, the Korean government said it would increase the number of hydrogen-powered vehicles to 6.2 million by 2040. Carbon fibers are fibers that weigh one-fourth less than steel but are 10 times stronger. They are vital materials necessary for safe storage, transportation and the use of hydrogen energy.
