Kumho Petrochemical shifts toward specialty materials, R&D amid petrochemical slump

Kumho Petrochemical's plant in Yeosu, South Jeolla Province / Courtesy of Kumho Petrochemical

Kumho Petrochemical Group is accelerating its shift toward research and development to reshape its business around higher-value products and advanced materials as the global petrochemical industry grapples with weakening demand and persistent oversupply.

The group said Thursday it is directing more investment toward specialty chemicals, sustainable materials and manufacturing process innovation as it seeks to improve profitability while positioning itself for long-term growth.

The strategy also reflects a broader shift from being primarily a materials supplier to providing technology-based solutions tailored to customers' evolving needs and tightening environmental regulations.

“Kumho Petrochemical Group is moving beyond a business model dependent on market cycles by leveraging technology to improve profitability while proactively securing new growth opportunities for the future,” the company said.

One of the group's main priorities is expanding its portfolio of specialty products.

Kumho Petrochemical has increased production capacity for solution styrene butadiene rubber, a synthetic rubber used in high-performance tires for electric vehicles. The material improves durability, rolling resistance and wear performance, making it increasingly important as electric vehicle adoption grows.

The company is also broadening its sustainability initiatives. It has built carbon capture, utilization and storage facilities capable of capturing about 76,000 metric tons of carbon dioxide annually.

Separately, it has developed technology to convert recycled acrylonitrile butadiene styrene recovered from discarded home appliances into automotive-grade interior materials that meet performance requirements while lowering carbon emissions compared with conventional production.

Beyond its traditional petrochemical portfolio, the company is participating in the development of next-generation anode-free lithium-metal batteries with partners including POSCO Future M and BEI.

Other affiliates are pursuing similar technology-driven strategies.

Kumho P&B Chemicals is developing water-based epoxy resins to reduce volatile organic compound emissions while increasing the use of bio-based feedstocks to lower carbon intensity.

Kumho Mitsui Chemicals is developing bio-based polyurethane systems and materials for electric vehicles while expanding methylene diphenyl diisocyanate production capacity through debottlenecking investments.

The company is pursuing an additional 100,000-ton annual capacity expansion project to strengthen competitiveness and respond to changing market demand.

Kumho Polychem is focusing on ethylene propylene diene monomer, a higher-value synthetic rubber, combining low-temperature polymerization technology with energy-efficiency upgrades to reduce emissions and improve manufacturing efficiency.