Kolon Industries (120110.KS) announced on the 2nd that it has completed its merger with Kolon ENP (138490.KQ), a subsidiary specializing in engineering plastic materials. The completion comes approximately four months after the board approved the merger in November last year.
With the merger, Kolon Industries strengthens its business portfolio by adding engineering plastics to its existing mobility, specialty, and chemical divisions. The company plans to accelerate its transformation into a global specialty materials company encompassing a wide range of high-performance materials.
The engineering plastics produced by Kolon ENP are high-strength, lightweight materials capable of replacing various metals based on their superior physical properties. Demand is growing rapidly across advanced industries including automotive, electronics, and medical sectors.
Kolon ENP's key materials include polyoxymethylene (POM), polyamide (PA), and polybutylene terephthalate (PBT). POM offers excellent mechanical strength and abrasion resistance, making it suitable for gears and conveyor belts. PA features strong abrasion and heat resistance, used in automotive engine components, and is drawing particular attention as a material for electrical components in future mobility platforms such as electric vehicles. PBT is used in electrical and electronic components including connectors and optical cables.
Kolon Industries also plans to accelerate vertical integration of its eco-friendly materials portfolio spanning from raw materials to finished products. The company will feed high-purity recycled raw materials extracted through its recycled PET technology directly into Kolon ENP's engineering plastics compounding process. The company also plans to strengthen research and development competitiveness through synergies between the two operations.
"This merger will serve as an opportunity to further strengthen Kolon Industries' competitiveness in specialty materials," a Kolon Industries official said. "We will continue to expand our portfolio centered on high-value products and lead the global market."
