Kolon Plastics and BASF announced on March 16 that they have signed an agreement to establish a joint venture in South Korea to manufacture polyoxymethylene (POM). POM is an engineering plastic used in various industries, including vehicle and construction.
The 50:50 JV, named Kolon BASF innoPOM Inc., will have an annual production capacity of 70,000 metric tonnes. It will be located at the existing manufacturing site of Kolon Plastics in Gimcheon, South Korea, which already includes a POM production. The start of operation is scheduled for the second half of 2018.
Once the additional production line is established in the Gimcheon plant, it will have an annual output of 150,000 metric tonnes of POM, including its current productions, the becoming world’s largest complex for the production of POM.
Both companies have long-term experience in the engineering plastic industry, including POM and will use Kolon’s highly efficient production technology to provide quality product. Products to be produced in Kolon BASF innoPOM Inc. will be supplied to the two companies and then to global markets as their product brands.