HYOSUNG CHEMICAL

Hyosung Chemical produces a wide range of chemical products used in various industries. These products include the raw materials for plastics we use in our daily lives, such as polypropylene (PP). Since chemical products are mainly used by businesses, we focus mostly on B2B sales. As a result, there is limited interaction with the general consumer, and many people are unaware that the benefit of Hyosung Chemical's technology is in our everyday lifestyle. Hyosung Chemical is committed to addressing environmental concerns and climate change, and we have started efforts to develop sustainable chemicals that can make our daily lives more convenient. Hyosung Chemical produces various chemical products, including its flagship product, PP-R R200P, which shines as the world's leading market share in the global market. We also have a product lineup that includes high-purity TPA, Film, Optical Film, Neochem, Polyketone, and others. By introducing the various products and core competencies of Hyosung Chemical's different business units, we will showcase how Hyosung Chemical is creating eco-friendly and future-oriented chemicals to realize "THE NEXT CHEMISTRY," making a sustainable future a reality.

Hyosung Polypropylene with Global Competitiveness

Hyosung Polypropylene, a product of Hyosung Chemical, holds the top position on the global market as a representative product of Hyosung Chemical. Hyosung Chemical produces PP-R (Polypropylene Random Copolymer) pipes, specifically the 'R200P', which have achieved significant exports to China. Our PP-R pipes are known for their affordable price, hygienic properties, and ability to last for over 50 years, making them an environmentally friendly alternative to traditional metal pipes. This has gained attention worldwide and contributed to its growth. The raw material used to manufacture such pipes, Hyosung Chemical's polypropylene resin, is a thermoplastic material that can be easily processed into various plastic products by heating it above a certain temperature. A stable supply of high-purity propylene, the main raw material for polypropylene resin, makes Hyosung's polypropylene resin globally competitive. Hyosung Chemical has established a vertical integration system from raw materials to the final product, polypropylene, by adopting advanced propane dehydrogenation (DH) technology. This enables them to produce products with special properties such as high strength, impact resistance, heat resistance, pressure resistance, transparency, and excellent overall performance.

However, despite possessing such outstanding technological capabilities, there are inherent limitations in directly conveying the value of being the key raw material for plastic to customers. To address this, Hyosung Chemical is focusing on developing technologies for recycling waste plastics by collecting and separating them, aiming to promote Hyosung Chemical's competitive polypropylene to the general public while taking the lead in the global trend of environmental protection. Additionally, to reduce carbon emissions during polypropylene production, Hyosung Chemical is developing CO₂ capture technologies and selling by-product hydrogen, while these efforts are aimed at contributing to the environment. Furthermore, Hyosung Chemical is striving to imbue everyday materials with circular economy principles and enhance our eco-friendliness, aiming to become a Circular Economy Facilitator in the PP/DH (Polypropylene/Diolefin) field and realizing "The Next Circular Economy."

Eco-friendly Engineering Plastic, HYOSUNG Poketone

As interest in the environment grows, there is an increasing need for eco-friendly alternative materials to replace conventional plastics. Hyosung Chemical has dedicated significant efforts to develop alternative materials to replace plastics. As a result, we have achieved a breakthrough by successfully developing polyketone, an environmentally friendly polymer composed of carbon monoxide and olefins (ethylene, propylene), which are major contributors to air pollution. Polyketone not only reduces carbon dioxide emissions during its production process but also proves to be harmless to the human body, emitting no toxic substances. As a result, it finds applications in various industries and is highly regarded for its safety, particularly in demanding sectors such as food containers and products for children and infants. Polyketone has the potential to be applied in diverse fields such as automobiles, electronics, industrial pipes, LED, cable ties, tire cords, industrial ropes, and hoses, and its possibilities are being recognized.

Hyosung Chemical's environmentally friendly engineering plastic, Polyketone, branded as POKETON, has the highest brand awareness among Hyosung Chemical's PU brands. It is currently gaining attention for its low Global Warming Potential (GWP) compared to conventional materials. If the technology for capturing CO as a raw material is developed, POKETON has the potential for even greater growth as a 100% environmentally friendly material. With the slogan "The Next Eco-restorer," Hyosung Chemical's Polyketone brand, POKETON, aims to increase its future core competitiveness as a safer and highly applicable environmentally friendly plastic. It is used as a safer alternative eco-friendly material and strives to become a creator of innovative substances that safely reduce CO.

Hyosung Neochem: World's Second-Ranked in Quality and Reliability

Hyosung Chemical's Neochem division develops and produces Trifluoromethyl nitride (NF2 Gas), an industrial specialty gas used in cutting-edge industries such as semiconductors, displays, and solar cells. Leveraging its accumulated expertise and technological capabilities in the chemical field, Hyosung Chemical produces and sells high-quality industrial specialty gasses. Since completing its factory in 2007 to become a specialized gas production company, Hyosung Chemical has successfully produced and sold On-spec products in a short period, continuously expanding its production lines to establish a stable supply system. Thanks to this, it has achieved remarkable success by effectively responding to the rapid growth of the semiconductor and display markets and being recognized for its high-quality excellence and technological prowess, achieving the second position in the world. Hyosung Chemical's Neochem PU is developing its own nitrogen trifluoride (NF3 Gas), which is used in cutting-edge industries such as semiconductors and displays. It also possesses a diverse portfolio of various specialty gasses, including 20% F2N2, deuterium (D2), hydrogen chloride (HCI), and chlorine (CI2).

Hyosung Chemical is currently recognized for its high quality and technological prowess. However, we are striving to address the issue of carbon reduction in specialty gases and develop flagship products with even greater competitiveness. Neochem aims to become "The Next Chemical Tools" that are essential for advanced devices such as semiconductors and displays. Neochem is also working on reducing environmental pollution by maintaining the quality of nitrogen trifluoride (NF3 Gas), a specialty gas while developing alternative gases through gas decomposition to lower pollution levels or reduce the Global Warming Potential (GWP) values. Neochem's efforts to minimize environmental pollution and its unique core strength as a provider of Chemical Precision tools, which cannot be replicated in physics, make its future even more promising.

A World-renowned Technology, Hyosung TPA

The main ingredient of high-performance polyester fibers, TPA (Terephthalic acid), is used as a primary material in various industries, such as tire cords, PET bottles, and polyester films. It is an intermediate product produced from Para-Xylene extracted from Naphtha. Hyosung Chemical produces high-purity TPA on a scale of 420,000 tons annually, utilizing state-of-the-art equipment and advanced techniques based on our chemical technology and experience. Hyosung Chemical's high-purity TPA is recognized for its top quality and stable properties, and it is exported throughout the world, including Asia, Europe, and the Middle East. This contributes to enhancing the competitiveness of polyester-related manufacturing companies worldwide and is used as a raw material for high-performance polyester fibers, tire cords, polyester films, and more produced by Hyosung.

TPA, a high-purity raw material essential for creating advanced materials, possesses its competitiveness. Hyosung Chemical's excellent high-purity TPA, known for its superior purity, safety, and uniformity with “Renewing the Highest Purity,” is being applied in various fields of daily life. This ranges from containers to electrical and electronic devices, industrial materials, construction materials, and machine parts. Hyosung Chemical strives to be established as “The next Purifying Facilitator,” giving birth to materials and products that enhance our daily lives; through continuous technological advancements in high-purity TPA fueled by its strong technical capabilities.

An Optical Film Made of Cotton

Optical Film refers to a thin sheet or film with diverse optical properties used in Flat Panel Displays (FPDs) such as LCDs, PDPs, and OLEDs. Hyosung Chemical specializes in the production of TAC (Tri-Acetyl Cellulose) Film, a crucial component known as a polarizer used in LCDs among the various optical films employed in display technology. In 2009, we established a TAC film factory for LCDs in Ulsan, becoming the first Korean company to achieve mass production of TAC film. With the completion of TAC Unit 2 in Oksan in 2013, our current production capacity for TAC film stands at 100 million㎡. TAC Film protects the polarizing PVA (Poly Vinyl Alcohol) film while offering high physical strength, heat resistance, moisture resistance, and optical isotropy. Hyosung Chemical produces TAC Film utilizing TAC Flake, derived from cellulose compounds created through acetylation reactions using cotton linters sourced from cotton seeds.

Hyosung Chemical is expanding its market presence by entering the Chinese market, which is rapidly becoming the largest display market. We are also expanding into new optical film markets and developing new films based on TAC film technology. As the development of display-based devices necessitates the use of alternative films (such as PET and Acrylic) that are more resistant to moisture than conventional TAC, Hyosung Chemical is adapting to market changes by developing and mass-producing alternative films, including Acrylic films. We have obtained recycling certifications for our recycling processes and are actively exploring energy-saving measures in production while emphasizing that the raw material used is derived from cottonseed in accordance with growing environmental concerns. Hyosung Chemical intends to ensure the competitiveness of TAC film by promoting its Optical Film, which is used in LCD, PDP, OLED, and other display applications, as the creator of new visual experiences and the next indispensable facilitator in the future display industry.

Hyosung Film: Packages for Food, Detergent, and Medicine

Hyosung Chemical is a leading producer of nylon and polyester films. These films find application not only in everyday household products such as food, detergent, and medicine packaging but also in various other industries. They are used in vehicle and building films, window films, advertising banners, and as upholstery for furniture and home appliances. The film refers to a thin and transparent layer made of synthetic resin. When the polymer thickness is less than 0.5 mm, it is referred to as a film, while a thickness greater than 0.5 mm is termed a sheet.

The types of general-purpose films produced by Hyosung Chemical include nylon film, PET film, PP film, PE film, PVC film, PS film, and ABS film, which are categorized according to their applications. First of all, nylon film is used for general packaging of food and pharmaceuticals that require long-term storage, packaging of retort food that requires sterilization, blister packaging of medicines, and secondary batteries. PET films are used in a variety of materials for optics and electronics, as well as various labels and stickers and graphic films used in the graphic industry, such as advertising materials. And they are also used in photovoltaics, vehicle and window tinting films, electrical insulation, and other industries. Hyosung Chemical is especially recognized for its superior technology in nylon films and has greater competitiveness compared to other films. It is especially attracting attention as a film with high growth potential as it can be applied to the Cell Pouch of secondary batteries, which are gaining attention along with the expansion of the electric and hydrogen car markets.

Hyosung Chemical is making even greater efforts to develop special films for New Possibilities in Packaging, which enhances the final competitiveness of existing industries as packaging materials. Our goal is to lead The Next Packaging Tech by creating safe and innovative packaging that ensures products such as food and medicine that represent someone's effort can be delivered intact to the end user.

Hyosung Chemical has a long history and a variety of product brands for each business unit. Our various product lines have gained a competitive edge in the global market based on our excellent technical capabilities and extensive experience, and we are also recognized for our stable technical prowess. However, there is a need to increase Hyosung Chemical's single brand power that encompasses the diverse brands for each product, as there are numerous brands for each PU. There is a need for a differentiated new image for the 'chemical' industry, which is essential to our daily lives but is often misunderstood as a major cause of environmental pollution, as environmental awareness is increasing and climate issues are becoming more prominent. At this point, it is more important than ever for Hyosung to introduce ESG management, which we are sincerely committed to as a group company, and strive to realize our slogan, THE NEXT CHEMISTRY. Hyosung's brand power will naturally increase by promoting recycling, carbon reduction, and energy conservation, developing new environmentally friendly materials, and establishing ourselves as a company that provides chemistry for a sustainable tomorrow. Hyosung Chemical is driving a paradigm shift to create a circular chemistry that preserves more possibilities by moving from simply manufacturing chemicals to making safe technologies that keep the earth healthy. Doing tomorrow's chemistry for a sustainable future, THE NEXT CHEMISTRY, is the future and competitiveness of Hyosung Chemical.