According to Korea Biz Wire, Hyosung has invested 1.24 trillion won while the central government and the province has invested more than 15 billion won.

The hub has been developed in order to boost the country’s carbon fiber industry to export 10 trillion won of carbon fiber products by 2020. 

Even though the carbon fabric industry is very promising, growing 12 percent every year, Japanese companies including Toray currently account for half of the industry. Korean enterprises such as Hyosung, Taekwang, GS Caltex, Samsung General Chemicals and SK Chemicals are now taking their first step in the industry.

Hyosung will invest more than 1.24 trillion won in its existing factories in the region. Of the total investment, 1.2 trillion won will be injected into its Jeonju factory to expand annual production volume to 14,000 tons from the current 2,000 tons by 2020.

Start up investment

The chemical company also plans to invest 20 billion won in “C’incubation” fund which is set aside for small companies and start-ups, 5 billion won in the Carbon Valley matching fund, 3 billion won in establishing a center for start-ups and 12 billion won in other plans including developing a product distribution process and IT support for the game industry. The government will also pour 10 billion won into C’incubation fund while the province is going to inject 10 billion won in the Carbon Valley matching fund.

Hyosung Group and the province plan to build the center for start-ups within the factory to nurture 20 small companies in the carbon fiber sector. With the start-ups, it will create a carbon fiber eco-system encompassing from carbon fiber materials to parts to end products.