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SEOUL, Oct 1 Asia Pulse - South Korea's leading synthetic fiber manufacturers are in the midst of implementing facility upgrades in pursuit of higher value-added products, industry sources said today.
Korean synthetic fiber makers are rapidly replacing their superannuated facilities for nylon, polyester and other unprofitable products with advanced systems to manufacture more high value-added products, said the sources.
Kolon Industries (KSE:02020), for instance, has discontinued operations at a 40-year-old nylon-production facility at its Gumi plant, about 260 km south of Seoul, and is building a spandex-manufacturing facility in its place.
"The decision to close the nylon production line was made to stem its widening deficit. Instead the profitable spandex line will be installed by December," said a Kolon spokesman. Kolon's another nylon line in nearby Gimcheon City will not be affected by the restructuring, as its automated facilities are still competitive, he added.
The facility replacements will reduce the company's nylon output from 190 tons a day to 130 tons, with its spandex output set to jump from 7 tons to 27 tons daily. Spandex, a highly elastic textile, is known for ...