Kumho launches solar energy business
Kumho Petrochemical’s solar energy plant in Sacheon, South Gyeongsang Province
By Kim Yoo-chul
Korea Kumho Petrochemical, a major supplier of synthetic rubbers and chemicals, announced Thursday that it will enter the solar energy business as part of measures to diversify its sources.
“Our company has been consistent in diversifying our portfolios. We’ve decided to operate a solar energy business as renewable energy-related items are lucrative and have high growth potential,” said the company spokesman Chang Yun-seok.
Its affiliate, Korea Energy Development (KED), will entirely handle the solar business. KED has recently completed the construction of a solar power plant inside the Korea Aerospace Industries (KAI).
“The facility, located in the southern industrial city of Sacheon, was built on an area of 66,800 square meters and has four separate buildings,” said the spokesman,
adding images of the facility will be posted online on June 28.
The plant generates 6,602 megawatts of electricity per hour, which is enough to provide power to 1,500 households, annually.
Through the plant, the firm aims to generate 2.4 billion won in revenue and cut 2,700 tons of carbon emissions, annually.
“We expect to generate total revenue of 28.8 billion won over the next 12 years and to cut 32,400 tons of carbon emissions,” said the spokesman.
The firm invested a total of 14.5 billion won into building the plant. Chang said the firm is eyeing on other businesses, such as bio-mass, to cut its heavy reliance on the conventional business.
The chemical firm started the energy business in 1997, operating two thermal power plants in the country’s petrochemical complex of Yeosu, 455 kilometers south of Seoul. As of the end of May this year, it had six affiliates.
The firm supplies synthetic rubbers, including butadiene, to major car manufacturers. It has cut output due to sluggish demand for these items.
“With Europe deep in recession, the U.S. economy in a fragile state and the Chinese economy slowing down, overall sales in the automotive industry have been flagging, leading to lower consumption of synthetic rubbers. Kumho Petrochemical plans to offset such falling demand of its conventional products by increasing its investments in new businesses,” said Park Jae-cheol, an analyst at KB Investment.