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Kolon Industries, Inc. Since 1957
Kolon Industries, Inc. is proud of having laid a cornerstone for the
economic development of Korea, becoming the first producer in the
country to turn out 2.5 tons of nylon a day almost half a century ago
and making possible Korea's rise to stardom in the global garment
industry.
By establishing the new millennium vision of being a global chemical
material producer armed with "first-class market value," KII is
determined to restructure its portfolio groups in the next several
years in a stage-by-stage transformation of its corporate profile.
Kolon, the pioneer of synthetic fiber in Korea in the 20th century,
wishes to retrace its achievements of the past 46 years and look
ahead to an even brighter, more promising future as a first-class
global producer.
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In the late 1950s, the South Korean economy,
though having recovered to its pre-Korean War
level, had yet to escape from the quagmire of
stagnation.
The only locally produced synthetic fiber goods
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were nylon socks made by small firms.
In those early years, nylon socks enjoyed tremendous popularity,
with demand continually outstripping supply.
It was in this setting that the company was founded in Taegu on April
12, 1957 initially as Korean Nylon Co., Ltd.
Constructing an elastic nylon yarn factory the following year, the
company took its first step as the sole explorer and front-runner of the
nylon fiber industry in Korea.
In addition, the company dedicated in 1963 a single yarn plant capable
of producing 2.5 tons of nylon filament yarn a day, and in 1967 broke
ground for the construction of a plant with triple that capacity in
a first-phase expansion program.
It thus played a pivotal role in the supply of nylon yarn across the
country. |
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Expansion of Business Base (1969-'82) |
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On February 25, 1977, Korean Nylon Co. was renamed Kolon (Nylon)
Industry Inc. and Korea Polyester Co. as Kolon (Polyester) Industries
Inc., respectively.
The Company thereby accelerated efforts toward a further leap
forward. |
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In the 1960s and '70s, Korea's nylon textile
industry enjoyed a major boom, thanks in part
to the successful promotion of a five-year
economic development plan.
The 1970s was a period in which nylon was |
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the undisputed king of the chemical fiber industry.
Upon the advent of new fiber polyester, Kolon Industries, inc. founded
Korean Polyester Co., Ltd.
in 1969, dedicating a plant capable of producing 17.5 tons of polyester
filament yarn a day in Kumi, North Kyongsang Province, in 1971.
In line with the trend at home and abroad toward management
rationalization, the business operations of Korean Nylon and Korean
Polyester were merged in 1972.
To diversify its business lines and products, the company produced
tire cord, thus providing a base for promoting its international
competitiveness.
The oil shock that hit the whole world the following year dealt a severe
blow to every industry in Korea, demonstrating that firms must be able
to survive on their own abilities.
In a move to reinforce its image and philosophy of being a "people's
industry," Kolon Industries, Inc.was listed on the Korea Stock
Exchange.
It was an occasion for the company to renew its determination to be
a model corporate citizen.
In January 1977, just 20 years after Chairman Lee Won-man founded
the firm, Lee Tong-chan, then CEO of Kolon Industries, inc. was
selected as chairman of the Kolon Group.
In a sweeping reorganization in February of the same year, Korean
Nylon was renamed Kolon (Nylon) Industries, Inc. and Korean
Polyester as Kolon (Polyester) Industries, Inc. to set the stage for the
company's major leap forward.
In the following year, a technology institute was established.
In 1981, Kolon (Nylon) Industries, Inc. and Kolon (Polyester)
Industries, Inc. were merged into today's Kolon Industries, Inc.
By taking over the Kyongsan plant of Kolon International Corp. in 1982,
the company began to prepare for business diversification away from
its exclusively textile-related product line. |
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Advancement of Industrial Structure (1983-'93) |
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At the outset of the 1990s , Kolon Industries, inc. sought to emerge
as a large-scale producer of advanced materials - mainly
high-polymer and precision-chemistry materials - taking
advantage of its vast synthetic fiber technology. |
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In the 1980s, Korea enjoyed steady growth
thanks to government policy efforts to stabilize
the economy and also to favorable global conditions.
However, the textile industry experienced a |
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sluggish pace of expansion due to cutthroat competition among
exporting countries and growing protectionist barriers imposed
by advanced nations.
In 1983, in a sweeping move to revamp itself, the company effected
a partial change in its management organization, changed the group
symbol, took over Koryo Nylon Co.and made public a long-term
management plan called "Vision 2000" with emphasis on technology
and the future.
Beginning in 1985, the company sought to further diversify its business
lines by aggressively expanding into the production of film, videotape
and medical supplies in addition to its backbone line of textiles.
At the turn of the 1990s, Kolon Industries, Inc. launched a polyester
spun bond line, unprecedented at the time, with the goal of widening
the scope of the textile industry and increasing added value.
With the new line, the company advanced into the interior and home
products, turning out artificial lawns, carpets, and the like.
On the strength of its synthetic fiber technology, the company entered
the production of high-tech materials, mainly high polymer and
precision chemical materials.
The first firm Kolon established abroad was Siam Tire Cord Co.,
a locally incorporated joint-venture producer of tire cord formed
with the Thai Mui Group of Thailand.
The company dedicated a tire cord plant in the outlying area of
Bangkok in 1991.
In 1991, Kolon, through a merger, took over Imperial Graphics Co.,
a leading British film producer and sales firm, securing a bridgehead
to the European market.
Through the exploration of new markets, KII cemented its base of
revenues and new business lines in what would become an area of
major importance. |
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Laying a Foundation for Growth (1994-'99) |
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With the dedication in 1997 of the Kimchon CIM unmanned
automation project begun in 1994, Kolon Industries, Inc.
inaugurated the production of the highest-quality and lowest-cost
products at its high-tech facilities, thus heralding the age of
unmanned automation. |
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In the middle of the 1990s, the company
experienced several years of crisis.
Deficits persisted in the textile area,
KII's main revenue source, due mainly to
sustained wage increases and the advent of
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newcomer industries armed with up-to-date facilities.
The deficits resulted in a decline in competitiveness, afflicting the
overall management of the company.
To cope with the crisis, Vice Chairman Lee Woong-yeul assumed the
presidency of Kolon Industries, Inc. in 1994 to personally manage
the company, the mainstay firm of the Kolon Group.
The new president put strategic management programs into action in
one area after another to recover the group's competitiveness.
Moreover, by launching a management renovation campaign called
"Race for No. 1," all officials and employees took positive part in
conscience innovation and corporate restructuring programs,
helping to successfully overcome the difficult business conditions.
In 1994, the company launched an automotive airbag project.
Also, to further increase its competitiveness, the company
scrapped old facilities and began construction on the Kimchon
unmanned automation plant.
In August of the same year, the company established Kolon Ina,
a locally incorporated firm in Indonesia, and absorbed Koryo Nylon
Co. to expand capacity of raw yarn.
One year later, in 1995, the company developed artificial leather with
its own know-how, a product whose production had previously been
monopolized by two Japanese firms.
Furthermore, in 1996 KII began to produce "HiFil," a water purifier for
use on water taps, its entry into the water-purification market.
In January 1996, Vice Chairman Lee Woong-yeul assumed the group
chairmanship.
Chairman Lee, declaring "One & Only" as the Group's managerial
motto, laid the groundwork for the Kolon Group to become a first-class
daily materials producer in the 21st century.
In the following year, the Kimchon CIM unmanned automation project,
designed to help realign the Group's business structure, was
completed, enabling Kolon to produce high-quality, low-cost products
with state-of-the-art facilities.
In April 1997, the company dedicated a PET film plant in Indonesia and
made investment in Vietnam and other foreign regions as part of
a drive to increase international competitiveness.
With the groundwork laid for further growth, Kolon Industries, inc. has
managed to overcome the difficult managerial conditions brought
about by the IMF crisis and to emerge as a financially sound
enterprise. |
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Kolon Industry in the 2000s |
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Pursuing the global top integrated chemical/material company,
Kolon is rendering more aggressive business strategies |
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Since year 2000, Kolon had to go through
difficult times due to decrease in market share
of its major products, chemical fibers and
package films. It was resulted from major
capacity increase of Chinese companies,
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soaring of oil price, decrease in the profitability, and conflict in
between employees and employers.
Even in difficult times, Kolon Inc. always was aware of these risks
and did not hesitate to ¡°change¡± the company. Currently, Kolon Inc.
is totally different from the past.
By shifting our focus from chemical fibers to industrial materials/
electronic materials / chemicals, Kolon Inc. is restructuring its
portfolio. Also, since year 2000, LCD material, polyimide film, aramid
fibers and other high value item development has been the major
focus of our company.
Not only that, but in June 1st, 2007, Kolon Inc. merged with Kolon
Chemical and became an ¡°Integrated chemical/material company¡±
that has 1 trillion 700 billion won of sales each year. By doing so,
it became a company that would lead the development of the Kolon
group¡¯s reputation in the global market.
Kolon Inc, a company that was founded as a chemical fiber company
that led the Korean ¡®clothing revolution¡¯ is challenging and developing
as of now to become the ¡°global top integrated chemical/material
company¡± to lead the 21st century global market.
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