Kumho Petrochemical Group said Monday it is seeking to overcome widening market uncertainties and a prolonged supply glut across the global petrochemical industry by shifting its focus to a high value-added business structure.

Closely analyzing market conditions to balance profitability and growth, the group aims to turn this period of uncertainty into new opportunities.

Kumho Petrochemical, the group’s flagship unit, has been working to bolster its competitiveness in solution styrene butadiene rubber (SSBR), a high-performance synthetic rubber that improves tire wear resistance and fuel efficiency at the same time.

The material is considered particularly suitable for electric vehicle tires, which require higher durability due to heavier batteries and frequent acceleration and braking.

Last year, Kumho Petrochemical completed new facilities that increased its annual SSBR production capacity by 35,000 tons. With the new lines entering commercial operation in the first quarter of this year, the company expects to further strengthen its competitiveness in specialty products.

Kumho Mitsui Chemicals, a joint venture between Kumho Petrochemical and Japan’s Mitsui Chemicals, decided last year to expand its annual methylene diphenyl diisocyanate (MDI) production capacity by 100,000 tons, following a previous 200,000-ton increase in 2024.

The project is designed to maximize cost efficiency and investment returns by using existing facilities more effectively, thereby reinforcing the company’s global leadership in the MDI market.

Kumho Polychem, a producer of ethylene propylene diene monomer (EPDM), also completed an expansion last year that increased its annual EPDM production capacity by 70,000 tons, securing a total output of 310,000 tons. EPDM, a high-performance synthetic rubber with superior heat, weather and chemical resistance, is widely used in automobiles, ships and industrial materials.

Kumho P&B Chemicals, which specializes in industrial raw materials, has been seeking to expand its presence in the Middle East and Europe while ensuring stable sales through supply deals with major clients.

D&K Chemtech, a phenolic foam board supplier established as a joint venture between Kumho P&B Chemicals and Dongsung Chemical, has obtained several environmental certifications, including low-carbon certification for core materials, strengthening its competitiveness in the eco-friendly construction materials market.