Taekwang Industrial Invests 150 Billion Won in Modacryl Expansion... Doubles Production Capacity

Commercial Production Set for 2028;
Annual Capacity to Reach 26,000 Tons
Aiming for 33% Global Market Share by 2030

Taekwang Industrial will invest 150 billion won to expand the Modacryl production line at its Ulsan plant. By more than doubling production capacity, the company aims to boost its global market share to 33% by 2030 and establish a dual leadership structure alongside Japan’s Kaneka in the global market.

A panoramic view of the Modacryl factory located at Taekwang Industrial's Ulsan plant. Taekwang Industrial

On August 13, Taekwang Industrial announced that it will invest 150 billion won to expand the Modacryl production line at its Ulsan plant. With this expansion, annual production capacity will increase from the current 12,000 tons to 26,000 tons, more than doubling. The new facilities are scheduled to begin commercial production in June 2028 after trial operations.

Modacryl is a special polyacrylic fiber used for synthetic wigs and flame-retardant materials. Taekwang Industrial succeeded in commercializing Modacryl, becoming the world’s second company to do so after the Japanese chemical firm Kaneka. In 2021, it launched its fashion material brand Modabon.

Recently, due to population growth in Africa, consumer trends have shifted from low-cost products to high-quality, high-functionality products, leading to increased demand for premium fashion materials such as Modacryl. Meanwhile, global supply remains concentrated among a small number of manufacturers.

Through this expansion, Taekwang Industrial plans to increase its global market share in terms of Modacryl sales from approximately 19% this year to 33% by 2030. The company aims to reorganize the market structure, currently dominated by Kaneka, into a dual-leader regime.

During the expansion, the introduction of state-of-the-art facilities, optimization of production processes, and reinforcement of the quality management system are planned. The company intends not only to increase production volume but also to improve supply stability in order to flexibly respond to the demands of global customers.

This investment is also part of Taekwang Industrial’s ongoing business restructuring efforts. In response to the deteriorating conditions in the petrochemical and textile industries, the company is streamlining non-core businesses while focusing investment on competitive and profitable businesses, such as the expansion of aramid and soda ash production.

A Taekwang Industrial official stated, “Modacryl is a market with robust global demand but only a limited number of suppliers with available capacity. Through this expansion, we will strengthen Modabon’s presence in the global market and foster it as a driving force for sustainable long-term growth.”

This content was produced with the assistance of AI translation services.