Kumho Petrochemical seeks future competitiveness

Kumho Petrochemical plant in Yeosu, South Jeolla Province / Courtesy of Kumho Petrochemical

Kumho Petrochemical will reorganize its business structure to secure the company’s future competitiveness.

The petrochemical giant said Tuesday that it plans to fully focus on seeking stable growth at a time when the global economy is undergoing a period of uncertainty.

The rush for companies to secure future competitiveness is intensifying as wealthy countries’ protectionism, trade conflicts and the prolonged COVID-19 pandemic have raised an overall sense of crisis in multiple industries. As such, the social value created by firms is becoming an essential part of future growth.

Kumho Petrochemical said it will establish a sustainable management system by creating social value related to the environment while strengthening its major business of producing synthetic rubbers and resins.

In the synthetic rubber sector, the petrochemical firm plans to secure profitability for NB latex, a raw material used to make nitrile gloves, and further solidify its dominance in the market this year.

The nitrile glove market is expected to grow gradually as interest in hygiene has increased recently, alongside the use of medical supplies in China.

Kumho Petrochemical is seeking opportunities to expand sales in the Malaysian-centered Southeast Asian market, where major glove makers are located.

The company will also expand its supply of materials for tires in expectation of a partial recovery in global vehicle production, which plunged last year.

For SSBR, a synthetic rubber for high-efficiency tires, the petrochemical firm is searching for new markets overseas while planning to expand sales to its major tire customers.

Responding to recent changes in the automotive industry which is accelerating its transition to eco-friendly vehicles, the company will continue to strengthen its products and maintain technological dominance through research and development in improving the durability of SSBR and its contribution to fuel efficiency.

Kumho Petrochemical will also closely examine changes in the external environment of the synthetic resin market to seek opportunities.

“We will expand our sales in PS and high-functioning synthetic resin ABS, which have excellent processing capabilities, by responding to the growing supply of home appliances and household goods after the outbreak of COVID-19,” a Kumho Petrochemical official said. (advertorial) (The Korea Times)