NEWS
Kumho Petrochemical records highest revenue in company’s history, to invest more than KRW 6 trillion over next five years: “Largest investment in company’s 50-year history”
No. 12
Date registered : 2022.06.07
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■ Decision reached on a KRW 6 trillion investment package over the next five years: KRW 2.7 trillion to be attributed to Environmental, Social, and Governance (ESG) management and new growth engine sectors, KRW 3.3 trillion to go to the enhancement of main business sectors
■ Future investments to include new growth engine sectors (i.e., material for eco-friendly vehicles), biomaterials, and core businesses (i.e., NB Latex)
■ Chairman Park Chan-koo promises to overcome uncertainties with 'preemptive investments' and 'create suitable jobs for mutual benefits' within their community.
On the seventh, Kumho Petrochemical announced its plan to invest more than KRW 6 trillion over the next five years for the establishment of new growth engines for the company—in the form of electric vehicles (EVs), biomaterials, and eco-friendly materials—and to strengthen the competitiveness of existing businesses for future endeavors.
■ KRW 2.7 trillion investment for ESG and new growth engines
Kumho Petrochemical plans to establish a priority project through the establishment of an ESG system and further develop new growth engines for the group. The company plans to put in an investment of KRW 2.7 trillion for this project.
The main objective of the group’s focus on ESG is to facilitate its transition toward renewable energy and to ensure greater efficiency with regard to the energy generation business. The group has established a blueprint of carbon neutrality, aiming to reduce greenhouse gas emissions by over 29% from the current Business-as-Usual (BAU) levels by the year 2030. The actual details of the plan are being worked through by an organization dedicated to this goal within the company. Kumho Petrochemical is also working to expand its eco-friendly vehicle material business based on EV and hydrogen fuel cells; furthermore, the company is working on making active forays into using eco-friendly and biomaterials through the development of ecological materials such as biosilica for its main business in synthetic rubber. The company’s ultimate goal is to prepare for a sustainable future by developing specialty products to help maintain its overall functionality while also adding eco-friendly features into its specifications.
The company continues to work on its future growth. It is currently nurturing businesses with large potential, centered around products that have gradually begun to gain more use. Such materials include the carbon nanotube (CNT), which is used in secondary cells, and engineering plastic (EP), which is used to lighten the chassis of EVs. Another feature of the company’s arsenal is the corporate venture capital (CVC) for open innovation, which will allow it to respond quickly to rapid changes in industry trends. Internally, the company has settled its plans for a project that will establish a digital transformation (DX) system, enabling it to combine business and digital technologies to enhance the efficiency of its work in more innovative ways.
■ KRW 3.3 trillion investment for the enhancement of main business sectors
Kumho Petrochemical also plans to invest a total of KRW 3.3 trillion to continuously strengthen the competitiveness of its core businesses, which will play an important role in bridging the company’s present with its future.
NB latex, a material used in medical latex gloves—in which Kumho Petrochemical has a firm leadership within the industry—greatly contributed to the company’s record sales figures in the previous year. Given the increasing importance of medical latex gloves, as with face masks, in the age of the pandemic with the growing awareness of medical hygiene, Kumho Petrochemical plans to further expand its status as a leading producer of NB latex by honing its technological and productive capabilities.
The company is also discussing a variety of detailed strategies to help strengthen the global competitiveness of its products, citing the entrance of Kumho P&B Chemicals’ epoxy business in the global top five and the twofold expansion of Kumho Petrochemical’s specialty chemical business (i.e., antioxidants and vulcanization accelerators). Another strategy currently being discussed involves maximizing the profitability of the company’s businesses in synthetic resin and phenol derivatives.
Chairman Park Chan-koo stated, “By predicting the market changes in the petrochemical market and using these predictions to engage in preemptive investments, we hope to overcome the increasing uncertainty of global markets and create suitable jobs for mutual benefits within our community.”
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No. 122022.06.07
Kumho Petrochemical records highest revenue in company’s history, to invest more than KRW 6 trillion over next five years: “Largest investment in company’s 50-year history”
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