South Korea chemical giant plus aramid investment, aiming at 5G and electric vehicle market new blue sea

with the strong promotion of 5G communication and electric vehicle industry, South Korea chemical enterprises are actively laying out the production of aramid, a high-performance material. Aramid, known as "super fiber" for its light weight and high strength, is ushering in unprecedented market opportunities.

Market Trends and Investment Trends in

In recent years, as the demand for 5G optical fiber and electric vehicles continues to rise, the market demand for aramid materials has grown rapidly. According to industry observation, by 2030, the global aramid demand is expected to maintain an average annual growth rate of more than 6%, especially in the field of optical fiber and electric vehicles, with an average annual growth rate of 12%. In this context, chemical giants such as South Korea Xiaoxing, Cologne, Taicuang Industry and Aijing have increased their investment in order to occupy a more favorable position in the global aramid market.

Localization Process and Technological Innovation 

in the aramid industry chain, South Korea enterprises are accelerating the process of raw material localization. Aojing chemistry is one of the best. The company has been working on the localization of TPC (terephthaloyl chloride) since the mid-2010s and successfully operated a demonstration plant in 2020. In November 2023, Aijing Chemical successfully produced TPC-based aramid trial products, which are planned to be mass produced by 2025. This aramid material is only 5mm thick, but its strength is as high as 5 times that of steel. It can bear a weight of 2 tons and can remain incombustible and infusible at a high temperature of 400-500°C. It is a bulletproof vest, fire protection clothing and other protective equipment. Ideal choice for industrial reinforcement materials.

Capacity Expansion and Market Competition 

In order to seize market opportunities, South Korea chemical companies have expanded production lines to increase aramid production capacity. Cologne Industries expanded its Gumi plant last year, with annual aramid production jumping from 7,500 tons to 15,310 tons, making it the largest aramid producer in the country. Xiaoxing High-tech Materials Company is not far behind, investing 61.2 billion won (about US $44.7 million) in 2021 to increase the annual output of aramid at the Ulsan plant from 1,200 tons to 3,700 tons. Taiguang Industry plans to invest 145 billion won in its Ulsan factory to expand the annual output of aramid to 3500 tons, with a target of 5000 tons by 2025. Although global giants such as DuPont of the United States and Teijin of Japan still occupy more than 70% of the aramid market, the rise of South Korea companies is gradually changing this pattern.

Future Outlook 

Looking to the future, aramid materials have broad application prospects in 5G communication fiber optic cables, electric vehicles and potential aerospace fields. Especially in the field of electric vehicles, lightweight components are essential to improve vehicle endurance. With the continuous improvement of aramid production capacity of South Korea chemical enterprises and the continuous optimization of technological innovation and cost control, aramid materials are expected to occupy a more important position in the global market, providing strong support for the vigorous development of 5G and electric vehicle industry.