Hyosung constructs a new production plant and expands the existing production plant of the industrial special gas NF3 (Nitron Fluorine Three) in China and Korea, respectively, to strengthen the cutting-edge chemical materials business.
Hyosung plans to invest about 200 billion Won successively to the City of 취조우, Zhejiang, China to newly construct a plant of 2,500 ton scale yearly until the first half of 2017. Along with this, about 100 billion Won was invested to the land of Yongyeon 3 Plant located in Namgu of Ulsan to expand the plant facility to the production capacity of 1,250 ton yearly, and commercial production will begin in March of this year.
This new construction of the China plant is meaningful in that this is the first construction of an overseas plant of Hyosung in the chemical materials business in addition to the fiber and industrial materials businesses in which Hyosung possesses world No.1 products such as spandex and tire cord.
Through new construction of the China plant, Hyosung plans to save logistic expenses and production cost and satisfy the fast growing demand of the Chinese domestic market to preoccupy the advantageous position in the Chinese and global markets. On this new construction, Mr. Cho Hyun-joon Head of the Strategic Division (president) said, “This new construction of the plant was determined to take preemptive actions for the explosively growing demand of semiconductors and display in the Chinese market,” and “taking this as a chance, we will continue to enhance the international status of Hyosung which has technological potential in the materials business.”
China announced in the past 2015 a huge scale investment plan of a total of 176 trillion Won to nurture the semiconductor industry and plans to raise consumption of the semiconductor products produced by Chinese companies to the 100 billion dollar scale until 2025. Beginning with this facility expansion in Korea and entrance into China, Hyosung will invest about 600 billion Won to Korea and China over the next 10 years to secure a total of 10 thousand ton production capacity domestic and overseas, under the strategy to make active attacks on the global special gas market.
As fluoride is the strongest oxidizer in nature, NF3 is a gas used to clean the equipment stained with foreign materials created in the manufacturing process of semiconductors, LCD and solar cells which are inserted to various electronic devices. The NF3 gas 10 thousand ton can satisfy about 43% of the total demand of the world (with respect to the expected demand of 23 thousand ton in 2018). Hyosung has already developed a process for 99.995% purity NF3 gas through its own research and commercialized it. Through this entrance into China, Hyosung is expected to establish itself as the global No.2 company in the business of NF3 which is a cutting-edge material of chemistry.
