Kumho Petrochemical's main business is synthetic rubbers. It has built up market leadership at general synthetic rubbers such as BR and SBR over 40 years. World's top-tier tire makers are its long-term customers. Recently, it also has developed and delivered eco-friendly and high energy-efficient synthetic rubbers such as S-SBR and Nd-BR which EU tire label requires.
Kumho Petrochemical has the world's second largest production capacity of 6PPD, antioxidant products for industrial rubbers. It has created synergy effects through vertical integration of synthetic rubbers and specialty chemicals businesses.
Synthetic resins
Synthetic resins are another biggest businesses of Kumho Petrochemical based on sales revenue. It delivers general and high-performance plastic materials such as PS, ABS, EPS, SAN, PPG, etc.
Others
Electronic chemicals, combined heat and power plants, carbon-nano-tube materials are other growing business of Kumho Petrochemical. It produces raw electronic materials for use in semiconductors and display components, and operates combined heat and power plants to provide energy to its own affiliates. It is venturing into the future high-tech carbon-nano-tube materials business.
Management Issues
At the end of 2012, Kumho Petrochemical ended its restructuring program under creditors supervision successfully with the highest credit rating 'A-' by Korea Investors Service. It was the first success case since Kumho Asiana Group entered into a 'workout' program to pay down the debt at the end of 2009. It resulted from its independent management from its parent 'Kumho Asiana Group,' based on the creditors' agreement which Park Chan-koo, fourth son of founder and chairman of Kumho Petrochemical, took responsibility for Kumho Petrochemical and its subsidiaries, and Park Sam-koo, third son and Kumho group chairman, for Kumho Tire since February 2010. Kumho Petrochemical is struggling to separate the company and its affiliates from Kumho Asiana Group.
Affiliates
Kumho P&B Chemicals provides BPA, MIBK, epoxy resin, phenol, and acetone. In terms of production capacity, it is 5th BPA maker and 9th phenol maker in the world.
Kumho Polychem provides EPDM with 4th largest production capacity in the world.