Kohap to quit fibers in South Korea . . .

Kohap to quit fibers in South Korea . . .

According to Asian Chemical News (15 January 2001), KOHAP Corp has announced plans to exit the fibers business in a move to improve its competitiveness. The immediate plan is to sell some fiber assets and relocate the remaining fiber units to China or Indonesia where the company has existing fiber production facilities.

Assets to be sold or relocated include 260,000 tons/year of polyester filament yarn (PFY), 540,000 tons/year of polyethylene terephthalate (PET) resin and polyester staple (PSF), 58,000 tons/year of nylon filament yarn, and 9,000 tons/year of nylon film.

KOHAP said that it is planning to concentrate on its core petrochemical business which includes paraxylene (PX), orthoxylene, benzene, and purified terephthalic acid (PTA), The company will continue efforts to sell its 500,000 tons/year No3 PTA plant in Ulsan.

The strategy is part of an agreement reached between the company's management and creditors. KOHAP creditors have 69% stake in company, and according to CAN, creditors expect to increase their stake to 100%.

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