It aims to add an extra 7,000 tons but the addition accounts for a mere 1% of global PET tire cord production.“Considering that it takes at least two years to ramp up production capacity, PET tire cord supply is expected to stay at the current tight level without any significant increase for the next two to three years,” said Yoon Jae-sung, an analyst at Hana Securities Co.“EV demand is expected to remain stagnant for a while but SUV demand is projected to grow steadily, making (PET tire cord supply) short.”Hyosung Advanced Materials invested $191 million to expand tire cords’ production lines at its factory in Vietnam in 2022.
A bright business prospect lies ahead for Hyosung Advanced Materials Corp.and Kolon Industries Inc., the world’s top two tire cord producers based in South Korea, as the global demand for the tire reinforcement material shows no sign of receding amid a supply shortage.
The utilization rate of passenger car tire plants in China, the world’s largest tire producer, topped 80% so far this year, the highest since 2014, driven by the steady increase in electric vehicle demand in the country and a 20% on-year rise in the country’s tire exports to the US and Europe.
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