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Company&People

ㆍKOLON PLASTICS, INC.

ㆍLS Mtron

Jump to the global EP industry specialist, based on stock's listing.
KOLON PLASTICS, INC.

Kolon plastics, inc. has made its domestic and foreign status higher as a general Engineering Plastic manufacturer since listing on the local stock markets on 15 June 2011, which became one of the core company specialized in EP in Kolon Group through integrating EP industrial sectors such as PA, PBT, PET of Kolon Industry in 2008 in addition to POM sector

As follows, interviewed managing director, Jin-Chul Seo, at Strategic Support Division to check company background and its major activities, background and current status of stock's listing, and the future strategy of the company.

Stock's listing, only the beginning...
550 billion won revenue goal to be achieved by 2015

Kolon Plastics, inc. enrolled in the local stock market after subscribing publicly offered share on 2 & 3 June beginning with the initial public offering and has received so much interest and response after its stock trading on 15 June.

The reason Kolon Plastics, inc. receives the current fervent response is regarded by stock street that it is building the various and powerful product portfolio such as PA, PBT, TPEE, PET, and various Alloy and has the competitiveness producing and selling all the polymerization and Compound products.

Stock's listing of Kolon Plastics, Inc. is thought not as a simple fund-raising but as a starting point for a general global Engineering plastic company. After it being listed, all the public offering funds are thought to be invested to the POM manufacturing facilities with 30,000 tons of annual scale that are being carried forward in Kimcheon factory, Gyeongbuk. If the construction is completed by the end of this year, productive capacity will be highly expanded from 27,000 tons of annual scale to 57,000 tons. In addition, by building additional compound process plants with 25,000 tons of annual scale, they say they will plan to expand an output step by step to the 50,000 tons of annual scale.

Jump to the enterprise specializing in the engineering plastic.

Kolon plastics, inc. is producing polyoxymethylene(POM), polyamide(PA), polybutylene terephthalate(PBT) out of 5 major EP products that occupy the leading need of EP fields, and based on the solid R&D infrastructure, it is growing in rapid response to the steady increasing need and the extending application for the parts and component such as automotive, electricity, electronics, household goods.

Kolon plastics, inc. already succeeded in the commercialization of POM with its own technology in 2007, which took over the EP sector of Kolon Industry with the rich business experience in engineering plastic for 30 years, and it holds overseas sales network of over 90 countries including Japan, Europe, America, heightening its overseas market share and achieving a steep sales growth in the domestic market. It also released and is promoting its developed products such as low odor VOC POM emitting nearly zero formalin gas harmful to the human body during injection molding, transparent materials there are no endocrine-disrupting chemicals, and halogen-free flame retardant resin.

Expecting the EP sales growth for automotive

Recent big issues in car industry are vehicle weight reduction and development of the eco-friendly vehicle. Engineering plastic is being applied fast as a alternative material of automotive since it has the strength of the metal level and the thermal endurance along with the merit on the low production cost and the excellent processability. America and China are of little importance on plastic parts in automotive as ever, compared to the German increasing share, up to 25%.

Accordingly, company's EP sales on automotive parts have greatly increased and its EP ones are expanded and applied diversely to electricity, electronics, living subjects over the excellent physical properties and processability. With measured steps to this various needs, we expect that a good fight will be made by Kolon plastics, inc. which is leading the domestic EP industry through the development of eco-friendly materials not emitting chemicals harmful to human or not including endocrine disruptor and heavy metals.

"Full-time life with plastic,
From automotive, electricity, electronics to living materials .....
Kolon plastics, inc. is making"

Kolon Plastics, inc. - Global leader for eco-friendly plastics.

Global EP industry is being developed by global chemical companies like DuPont, BASF, Rhodia, etc. In addition, as only a few companies secure the original technologies, there are high entry barriers, so competition can be limited too. Therefore, the domestic EP manufacturers are specialized in the specific materials, but Kolon Plastics, inc. has the exclusive POM process technology and secures the technologies and production facilities including a variety of EP products such as PA, PBT, TPEE, PPS, etc. Currently by building additional POM facilities, we think world-wide cost effectiveness and manufacturing technology specified in producing low VOC POM will make the company have the opportunity to jump to a global leading EP professional company.

There was already set up the strategy to overseas expansion by the diversified products. There are so many and wide overseas markets to show the company's real technologies like car weight lightening.

Though the sale portion to China was high 4~5 years ago, it earns its values as global products for its export ratio to America and Europe to go far 50% through strengthening the marketing to the developed countries. It plans to advance in earnest to the new developing countries like China, India, Brasil, etc. where the need for car and electronic goods is soaring. Especially, within 2 years, sales subsidiaries in China were planned to be set up, and eventually, producing and sales in China is carried forward.

Kolon Plastics, inc. plans to double the productive capacity of POM in KimCheon factory, to extend the sales ratio for eco-friendly low VOC POM, and to maximize the influence on the whole market. Also, it says vigorous aspiration to lead the market by developing light diffusion resin for LED, space-age materials, etc. through the intensive arrangement of R&D and manufacturing technique in KimCheon factory. We expect Kolon Plastics, inc. to represent the domestic and lead global EP market in the bright future.

Seoul branch of Kolon Plastics, inc. located in annex building
Managing director, Jinchul Seo, at Strategic Support Division
Kimcheon factory of Kolon Plastics, inc.
Kolon Plastics, inc. POM factory's site-extension

China Germany America Korea global average
source : CHINAPLAS 2007, American Chemistry Council, Kolon Plastics Operations.
< Automotive Plastic Parts Ratio by Country >

Dispenser Pump Lid of the Fuel Tank
Speaker Grill Bowl Joint
Parts of the Seat Belt Fuel Filler Neck
< Parts applied with the products of Kolon Plastics, inc. >

< Gaining wide customer base of 90 countries >

Kolon Plastics, inc.
* Headquarters & Institutes & Factory : 1018 Eungmyeong-dong, Gimcheon-si, Gyeongbuk, Korea
* Seoul branch : 10F, Kolon Tower Annex, 1-12, Byeoryang-dong, Gwacheon-si, Gyeonggi-do, Korea

Under the vision 'Smart future relies on LS',
To become a world top class injection molding machine manufacturer.

Director : Yong-Min Shin, the head of LS Mtron injection molding machine division(IMMD).

-Joined Moosuk Corporation China in 2004
-Served as a head of C/S general division and a head of the same corporation
-Appointed to a head of LS Mtron(Korean No. 1 injection molding machine manufacturer) injection molding machine division in 2010.

Interviewed him about his pursuing company's look and the direction of future development.

LS Mtron IMMD is making an effort to improve productivity and sales by creating a new culture seeking changes over the inner innovation reconstructing its production line for injection molding machine(IMM) like the car production one.

While assembly type changed over from serial to parallel with the activity of quality circles winning a prize at a national convention and work site was modularized like the auto industry, these changes resulted in improvement of production time and sales figures within the same time and space and with the same number of people. Director, Shin says 'The ultimate goal of improving productivity under the voluntary innovation in work site is 'win-win' with customers by supplying products customers need in good time and also contributing greatly to improving the sales with the redoubled production volumes from the extension of production capacity.' and emphasizes 'These changes lie in our strength'

Vision 'Smart future relies on LS' proclaimed

Living in the smart age, we overlook the correlation between smart devices and injection molding machine. For example, we don't know the important role of injection molding machine to give birth to smart phones, though we can see easily people use smart phones. That's why LS Mtron IMMD proclaimed the vision 'Smart future relies on LS'

To create the atmosphere that all company members innovate themselves voluntarily, changing their thought and behavior smoothly.

"The reason this vision was proclaimed is that challenging spirit is lost without the goal to reach. I think that many sport heroes could make a new record, as they had their own goal setting and challenging spirit to achieve the goal. Moreover, it cannot be stressed enough that this goal setting is more important than any other things to make all the members in a group move to one direction.

If the vision all the members agree on is presented and the changes based on interaction is achieved, there will come into being the output, which will result in 'Can Do' self-confidence. Upon these things, if all the members join on their own and this becomes habitual, eventually it is developed to a culture. This help the integration of the organization to be done."

Director Yong-Min Shin, who explained the reason why he had proclaimed the vision, adds "To want to have the pride, 'Goods shot out by our injection molding machine', whenever smart devices are seen by providing set-maker and vendor which haven't put to use our products with our injection molding machines"

Our Goal : World top class manufacturer of injection molding machine

The Director, Mr. Shin says "Based on our outstanding technical expertise, we will plan to focus not on the domestic market in a saturated condition but on the overseas market with a great possibility to be extended through R&D, batch manufacturing system, and 32 business & SVC networks over the worldwide 25 countries. To make it real, our overseas sales divisions are redoubling the sales capacity performed by foreign agencies so far by increasing to come face to face with customers over the aggressive business trips. It implies to catch out the overseas market with the extension of the contacted area and to do a customized business with the prepared fallback after this market survey."

Meanwhile, they say there's no separation between overseas sales and domestic sales in LS Mtron injection molding machine division. Because some companies find their vendors on the overseas spot instead of advancing abroad together with their vendors, though domestic leading companies are advancing abroad so much and so are their vendors, this is the strategy to provide LS Mtron's injection molding machines for vendors on the overseas spot as well as domestic vendors advancing abroad with their company.

"We have no domestic rivals, but there are some rival companies in the overseas market - H company, E company, H company, etc., which have three things in common : firstly, line-up for every model is completed, secondly, they produce automotive injection molding machines and thirdly, they are well equipped with overseas networks. We certainly believes that LS Mtron secures enough competitiveness, compared with above companies.

We already match up to the specification world leading set-makers demand, and companies having used the existing injection molding machines is on the increasing awareness to our products with 'Excellent performance and attractive prices' after using our machines, as they begin to feel doubt something like 'Why should we keep on using these expensive machines' "

Development of toggle type molding machine keeping up with user's diversity.

LS Mtron IMMD is producing Small, middle, and large size hydraulic IMM, electric IMM, hybrid IMM, special purpose IMM such as two color IMM, IMM only for mobile phone, IMM only for light guide plate, super high speed IMM, vertical type IMM, and heterogeneous IMM, etc. Recently, they are also developing and field-testing 11 toggle type IMM models(50~700 tons), after having completed the line-up of each model by the development of two color electric IMM, super-size improved model, middle & large size upgraded IMM, upgraded electric model, hybrid IMM(2000 tons), super high speed hydraulic IMM, etc.

"Toggle type IMM is the product that can be made only with the technical capability the most inexpensive and widespread. Supplying these equipments at a reasonable price enables us to provide a boost to the users under the limitless competition in home and foreign market. Likewise, with a firm conviction of 'Serve our customers', we developed and are field-testing toggle type IMMs, and we plan to release them unquestionably in the second half as they were already verified flawless."

He says that this toggle type IMM is going to produce at the same time in both domestic factory and China factory and that all this model lines as basically a low-energy ones will be equipped with the most excellent controller.

Like this, pride from Director Shin, standing tall in the center of LS Mtron IMMD which is fitted with various and brilliant products to meet the home and foreign customers's needs and is doing a lively trade in the world, may make us feel that it won't be long before we come into contact with LS Mtron's IMM.

- Vision declaration ceremony
- Winning a prize at a QC contest in Jeollabuk-do
- Ceremony for the excellent business performance
- Newly released toggle type IMM
- To become a world 6th or 7th IMM manufacturer by achieving its turnover goal, 500 billion won, by 2015 after 270 billion won in 2011 and go further to a world fourth by achieving 1 trillion in 2020.
- The head of IMMD, director Shin explaining about advancing the overseas market.

Evonik Industries AG Performance Polymers D-45772 Marl
Germany
TEL. +49 236549-9227
>> www.evonik.com

Biopolyamides.

They are not disposable products, there are no restrictions on their service life and they do not give rise to any technical weaknesses at all.

On the contrary, biopolyamides are long- lived, durable and can be used in demanding applications, e.g. in
the automotive industry.

Durable and Eco-Friendly

BENJAMIN BREHMER Unlike other bio-based polymers, biopolyamides are high-performance polymers. 혻In fact, hydraulic
clutch lines, compressed air brake lines and fuel lines made from biopolyamides are already undergoing testing, approval and some are currently in use. Cable sys- tems are not the only possible applications �� many other vehicle parts can be produced from these new materials, too.

The environmental impact of mobility imposes high standards on conventionally powered vehicles. The efficiency of these vehicles has been greatly improved through technological advances. Not only optimized powertrains and lightweight designs, but low-emissions production materials too can significantly improve a vehicle’s lifecycle assessment. Polymers are long-established working materials for modern vehicles, and now constitute as much as 25 % of a vehicle’s weight.

While fossil raw materials make up some 99 % of conventional polymers, renewable resources provide the monomers for bio-based polymers. However, their use is almost exclusively limited to the packaging industry, i. e. bags, films, and yogurt tubs. Not all bio-based polymers behave in the same way.

Although high-performance polymers, especially, are typically petrochemical derivatives, polymer chains can also be wholly or partly synthesized from biobased building blocks. Biopolyamides are an integral part of the high performance polymers portfolio offered by Evonik Industries AG, Marl, Germany, a specialty chemicals company. Such biopolyamides are even growing in popularity for technically demanding automotive applications. Unlike petrochemical-based polyamides, however, biopolyamides offer a more favorable energy balance and carbon footprint (Title picture).

The biopolyamides owe this positive overall outcome to the castor oil plant Ricinus communis, from which the monomers are derived either directly or indirectly. Evonik offers its three different biopolyamide grades PA610, PA1010 and PA1012 under the name Vestamid Terra (Fig. 1).


Fig. 1. The chemical formulas of the biopolyamides: Crucial for the biopolyamides is the carbon length between the amide groups (CONH); the technical properties vary with the ratio and length of the carbon chain

The short-chain PA610 is resistant to high temperatures and therefore ideal for hot environments, such as car engine covers. The medium-chain PA1010 has high rigidity and therefore lends itself especially to mechanically demanding parts. The long-chain PA1012 has high impact resistance and is ideal for parts likely to be exposed to stone-chipping (Table 1).

Table 1. Overview of the main technical properties of selected polyamides: The bio content describes the origin of the carbon atom in the polymer chain; all of the PA1010 is obtained, for example, from the castor oil plant

A rule of thumb for semi-crystalline polyamides is: the longer the carbon chain, the greater are the impact strength and solvent resistance. This is accompanied by a decrease in the tendency to absorb water and to creep. The implication of this is that the shorter the chain, the more heat-resistant the material be- comes. Biopolyamides vary by having relatively short to relatively long chains, and can therefore meet the specifications and requirements profiles of many automotive parts. Hardly any other polymeric material provides so many options in this price range.

For Hydraulic Clutch Lines

Hydraulic clutch lines are highly demanding automotive parts that are mostly made from polymers. The driving force here is ever-increasing demands on design freedom. The lines are actuated by internal oil pressure and are located right beside the engine. High heat resistance is therefore imperative. Comparison shows that the melting temperature of PA610 compounds is approx. 40

higher than that of traditional PA12 compounds. As the lines are installed without any protection, they must also possess long-term chemical stability, e. g., to oil and salt water.

The key element of the technical specification is the measurement of the hoop stress at burst. The lines may not crack or fail at elevated operating temperatures. At temperatures above 100

, PA610-HL offers superior pressure resistance than existing PA12-HL systems (Fig. 2).

Fig. 2. Comparison of the hoop stress at burst of tubing made from various polyamide compounds for hydraulic clutch lines

PA610HL is thus a prime example of how the supposed contradictions of sustainability and performance can be combined. This bio-polyamide is already in commercial use. It is not possible to meet all the requirements of a hydraulic clutch line with a base polymer on its own. Therefore, compound development and fine-tuned recipes are extremely important.

Stable under High Pressure Too

The art of compounding consists in mak- ing processing easier for the manufacturer whilst fully complying with the technical specification. Air brake lines used in commercial vehicles are a typical major challenge in this regard.

Air brake lines have traditionally been made from longchain polyamides that comply with DIN 74324 (Polyamide tubing for air braking systems), such as PA12. These polyamides best meet the requirements in this application, particularly with regard to the installation method. When several hundred meters of tubing are being installed, the ability of the polyamide to bend is immensely important, as well as how accurately it is installed. To facilitate this application, the tensile elastic modulus of a compressed air brake line must be between 450 and 600 MPa. This is where PA1010 comes in.

Again, the hoop stress at burst is the main component of the technical specification. The performance of extruded tubing decreases particularly at elevated temperatures (above 80

). The value for PA1010-PHLY, however, is above the guide value and is higher than PA12 at temperatures above 100

(Fig. 3).

Fig. 3. Comparison of hoop stress at burst of tubes made from various polyamide compounds for air brake lines (tube of 1 mm wall thickness and 8 mm diameter)

A further important requirement is abrasion resistance, as the lines are sometimes laid in bundles and can rub against each other while the vehicle is moving.

Abrasion behavior has therefore been tested under different scenarios by rubbing various sections of tube (40 mm long, 12 mm diameter) with a 1-kg weight at a speed of 160 mm/s. Tubing made from PA1010-PHLY lost none of its layer thickness, not even after 300,000 cycles.

This biopolyamide, therefore, remains stable under high pressure, and is also al- ready in commercial use.

Other Cable Systems

Automobiles are to be found in the most diverse climate zones, and must also resist the most adverse weather conditions. So, too, must the polymeric cable systems installed under the hood and in the chas- sis area. For example, tubing must resist zinc chloride (ZnCl2) for at least 200 h (as per SAE J844), in other words, be resistant to winter road salt. PA1010 and PA1012 are totally resistant to not only ZnCl2, but also ethanol, battery acid and oil. This intrinsic resistance renders these biopolyamides ideal for fuel lines, especially hot diesel lines.

An Ideal Compromise

A major advantage of biopolyamides is the reduction in

emissions. On average, biobased polyamides generate about 50 % fewer emissions. Figure 4 shows the amount of

released during the production of various polyamides, from raw materials through to pelletization.

Fig. 4. Carbon footprint of various petroleum-based polyamides and biopolyamides

Ideas still abound on how to increase the use of biopolyamides in the automotive sector. Several application-specific development projects currently underway are aimed at striking an ideal com promise between technical and ecological goals. One example is the use of multi-layer pipe technology: here, the desirable (ecological and technical) properties can be achieved with a combination of, e. g., standard PA12 layers with biopolyamide layers.

Even Lighter?

New products can also yield unexpected benefits. Compared with conventional polyamides, which are chiefly processed

by injection molding, biopolyamides have a lower density:

- PA6 or PA66 : 1.13 g/
- PA610 : 1.08 g/
- PA1010 : 1.05 g/
- PA1012 : 1.04 g/

The difference might not appear to be very great. But every gram counts in lightweight constructions. Currently, weight savings of 5~9 % are feasible. The possibilities for biopolyamides are far from exhausted.

THE AUTHOR
DR. BENJAMIN BREHMER, born in 1981, is responsible for sales and marketing of biopolymers within the High Performance Polymers division of Evonik Industries AG, Marl, Germany.

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