South Korean Kolon Industries Inc., a subsidiary of Kolon Group, has been licensed to invest $220 million in a factory manufacturing KVT-1 industrial fabric for automobile tires in the southern province of Binh Duong.
According to the Ministry of Planning and Investment's Foreign Investment Agency (FIA), Kolon Industries' project was among the four biggest projects licensed in January this year, contributing to the 6.6 per cent on-year increase in the country's total newly-registered and expanded capital, to $1.42 billion.
The investment certificate is a landmark for the South Korean firm to realise its investment capital of $1 billion in the province.
In late 2016, Kolon Industries and leaders of the Binh Duong People’s Committee signed a Memorandum of Understanding to confirm the firm’s investment plan.
According to Kolon Industries’s plan, the $1 billion investment capital will be disbursed in three phases. The first phase, with a total investment capital sum of $220 million, will be disbursed in the 2017-2018 period and the $600 million second phase will last until 2026. The $1 billion mark will be hit sometime after 2026.
Establishing its first nylon production factory in 1957, Kolon Industries is currently expanding operations into four major business divisions, namely industrial materials, chemicals, electronic materials, and fashion. The company earns approximately $100 billion in revenue each year. It currently has factories in South Korea, China, Indonesia, and Mexico.
The corporation plans to globalise its business lines in automotive materials, advanced materials, optical films, chemicals, and fashion production by increasing investment in high-value products.
Its parent company Kolon Group was licensed for a $14.1 million airbag manufacturing facility in Binh Duong in 2015.
By Bich Thuy