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KCC headquarters in Seocho District, Seoul. (Photo = KCC Corporation) |
[Alpha Biz= Kim Jisun] KCC Corporation will suspend glass fiber production at its Sejong plant, marking the end of operations 28 years after the facility first began running in 1998, as it struggles to compete with low-cost Chinese imports.
Glass fiber is produced by melting glass at high temperatures and drawing it into fine filaments. It is widely used as a reinforcement material in composite applications across key industries such as automotive, wind power, and electronics.
According to industry sources on April 13, KCC plans to halt operations of its glass fiber production line at the Sejong plant by the end of this month. The facility has been the only domestic site in South Korea producing glass fiber in-house.
KCC initially invested approximately KRW 110 billion in the business when it entered the market in 1998 and injected an additional KRW 120 billion in 2019 to strengthen competitiveness as Chinese products began entering the market in earnest. At the time, the company aimed to secure economies of scale.
However, market conditions have shifted sharply in the 2020s. Chinese manufacturers, facing oversupply in their domestic market, have aggressively expanded exports, driving prices down significantly. The price gap between KCC’s products and Chinese alternatives is currently estimated at around 35–40%.
After accumulating losses exceeding KRW 100 billion over the past three years, KCC ultimately decided to suspend operations. Approximately 100 employees at the Sejong plant are expected to be reassigned to other business units.
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
