South Korean chemical and textile manufacturing company Kolon Industries has announced plans to invest 30 billion won (approximately $20.5 million) to expand its tire cord production in Vietnam. The company made the announcement on January 15, 2025, highlighting its strategy to increase production capacity at its Vietnamese facility to meet the growing demand for tire cords in Southeast Asia, a major hub for tire manufacturing.

The new plant in Vietnam will be operational by 2027 and will help meet the increasing regional demand for tire cords.

The investment will allow Kolon Industries to boost its annual tire cord production capacity from 36,000 tons to 57,000 tons by 2027. Tire cords, essential materials for the reinforcement of tire carcasses, play a critical role in ensuring the safety, durability, and performance of tires. These cords undergo a complex production process that includes spinning, twisting, weaving, and heat treatment to achieve the necessary physical properties and strength for tire applications.

Kolon Industries plans to repurpose equipment from its recently shuttered Nanjing plant in China to help cut costs for the new facility. The Nanjing plant was closed in 2023 as part of a broader restructuring effort by Kolon to optimize its manufacturing operations. By recycling idle equipment, Kolon will save significantly on investment costs, making the expansion in Vietnam more financially efficient while maintaining the company’s long-term strategic goals.

In a statement, Kolon Industries emphasized the importance of continuing investments to expand its footprint in the tire cord market. “This investment is crucial for us to expand the supply of tire cord to Southeast Asia, one of the world’s largest tire production centers,” the company said. “We remain committed to increasing our share of the tire cord market through strategic investments that enhance our production capacity and technological capabilities.”

The decision to expand production capacity in Vietnam aligns with Kolon Industries’ broader vision of strengthening its position in the global tire cord market. Southeast Asia, particularly countries like Vietnam, Thailand, and Indonesia, is a key region for tire manufacturing, and the growing demand for high-quality tire cords in this area has prompted Kolon to focus its efforts there.

Kolon Industries expects that this move will not only boost its market share in the Southeast Asian market but also strengthen its overall competitive edge in the global tire cord industry.

As Vietnam continues to rise as a key player in the global tire industry, Kolon’s expansion in the country positions the company to capitalize on the region’s growth and further solidify its role as a leading supplier of tire reinforcement materials.