Hyosung details 36ktpa capacity for India tire cord plant

Seoul – Hyosung Advanced Materials is planning 36 kilotonnes per annum (ktpa) of polyester tire cord capacity at its new Indian plant, according to recent environmental filings for the project.

The proposed greenfield facility in Butibori, Nagpur, Maharashtra, will be developed in two phases, each with capacity of 18ktpa, according to documents filed with the Indian state's environmental authorities.

The capacity figures provide further detail on the project announced by Hyosung last November, when the Korean group unveiled plans to invest $30 million (€26 million) in its first polyester tire cord production facility in India.

As previously reported by ERJ, Hyosung has secured a 230,000-square-metre site for the plant and expects to complete the facility in 2027. (ERJ report)

Separately, Hyosung said in its first-half report that investment in the Indian operation had increased significantly during the opening six months of the year.

The group invested a further KRW23.6 billion (€15 million) in Hyosung India during the period, taking cumulative investment in the operation to KRW35.4 billion at the end of June.

The investment comes as Hyosung reported strengthening demand across its tire-reinforcement materials business.

First-half sales from tire reinforcement materials reached KRW1,033 billion, including KRW483.7 billion in the first quarter and KRW549.3 billion in the second quarter.

Hyosung said second-quarter sales increased 12% year-on-year, and 13.6% sequentially, supported by higher tire-cord sales across major markets.

The Korean supplier said profitability also improved on increased sales of high-value-added products and improved operating rates.

Announcing the Indian project last year, Hyosung said the investment was intended to address “steadily increasing” local sourcing requirements for tire cord in India and establish a “stable supply chain” in the growing market.