Kolon expands eco-friendly car interior materials biz
Hyeon-woo Oh
Sep 24, 2024 (Gmt+09:00)
Kolon Industries' headquarters building in Seoul
South Korea's Kolon Industries Inc., the Kolon Group's chemical materials arm, will absorb its affiliate Kolon Glotech's automotive materials and parts division.
Kolon Industries' board approved this merger plan on Monday. Kolon Industries has 98% of Kolon Glotech. The process is to be completed by the first quarter of 2025.
Founded in 1987, Kolon Glotech manufactures fabrics for automotive interiors and furniture.
Its automotive materials division, which accounted for 81.54% of the company’s revenue last year, has been a significant driver of growth.
Sales from this division increased from 618 billion won ($462 million) in 2021 to 781.6 billion won ($585 million) in 2022, largely due to the expansion of its global sales network.
Kolon Industries, which already produces various automotive interior components such as tire reinforcement materials and airbags, aims to strengthen its supply chain by integrating Kolon Glotech's operations.
The company also plans to leverage Kolon Glotech's international sales networks, particularly in India, to boost exports of products like airbags.
Kolon Group anticipates significant shifts in the automotive interior materials market driven by global decarbonization efforts.
As the demand for electric and hydrogen-powered vehicles grows, the need for eco-friendly materials is also expected to increase, according to the company.