Kolon Industries' tire cord plant in Vietnam / Courtesy of Kolon Industries

Kolon Industries announced on Tuesday that it will invest around 30 billion won ($20 million) to increase the annual production capacity of its tire cord plant in Vietnam to 57,000 tons by 2027 from the current 36,000 tons, demonstrating its strong commitment to the business.

A tire cord is a high-strength fiber used as the structural backbone of tires, which improves a car's safety and performance.

The textile firm said that it generally costs about 200 billion won to add a tire cord production line.

However, it was able to reduce costs by relocating its idle production facilities from Nanjing, China, to the Vietnamese plant. The Nanjing facility has been inactive since 2023 due to the city government's land development plan.

"The planned investment will enable us to preemptively respond to customer demands in Southeast Asia, one of the world's largest tire cord production bases," a Kolon Industries official said. "We will remain committed to strengthening our presence in the tire cord market through continuous investment and innovation."

Earlier this month, Kolon Industries CEO Huh Sung visited his company's tire cord plant in Gumi, North Gyeongsang Province, marking his first visit to a company factory since his appointment last November.

The subsequent efforts of the fiber maker to boost its tire cord business came after a prolonged legal battle with its bigger rival, HS Hyosung Advanced Materials.

The two firms have been embroiled in a conflict since 2022, when HS Hyosung asked the Intellectual Property Trial and Appeal Board to nullify Kolon's tire cord patents, which were granted in 2015.

Although the board rejected the request in March last year, the petitioner lodged an appeal.

Last year, Kolon filed separate lawsuits in the United States, alleging that HS Hyosung infringed on its patents on aramid-nylon hybrid tire cords.

In contrast to Korean authorities, the U.S. District Court for the Central District of California ruled in favor of HS Hyosung, denying Kolon's claims in July and September last year.

Kolon, however, filed another petition with the court last October against HS Hyosung.

Amid the intensifying rivalry, a $140 million investment by HS Hyosung Advanced Materials has also been underway since August 2022 to increase its tire cord production capacity in Vietnam by April this year.

As of last year, HS Hyosung held a 51 percent share in the global tire cord market as the largest player, while Kolon occupied around 15 percent as the second largest.