Korea Kumho Petrochemical Co. and its three subsidiaries plan to spend 880 billion won ($837 million) by 2014 to scale up their production lines in Yeosu, South Jeolla Province the companies said Tuesday.
The deal reflects the firms’ efforts to meet surging demand for their materials, which are used in automobiles and consumer electronics.
When completed, Kumho Petrochemical will be able to churn out 60,000 tons of S-SBR synthetic rubber every year, it said. The annual capacity of Kumho P&B Chemicals, Kumho Polychem and Kumho Mitsui Chemicals will be increased to 150,000 tons for bisphenol A, 60,000 tons for ethylene propylene diene terpolymer and 50,000 tons for methylene diphenyl diisocyanate, respectively.
The companies also plan to build steam generation facilities to supply power at their plants, they said.
Kumho said the project will contribute to the local economy by creating 650,000 jobs for construction work and additional 130 at the facilities when operations begin.
Yeosu, which houses the country’s largest chemical complex, said it will help facilitate their administrative processes.
