Kolon Industries has commissioned a new modified polyphenylene ether production line.

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Recently, Kolon Industries of South Korea announced that it will invest approximately KRW 34 billion to build a new modified polyphenylene ether (mPPO) production facility at its Gimcheon II plant in North Gyeongsang Province, with commercial operation scheduled to commence in the second quarter of 2026. mPPO is a high-value-added electronic material used in copper clad laminates (CCL), and as the core substrate of printed circuit boards (PCBs), CCL plays a critical role in suppressing electromagnetic interference.

The electrical insulation performance of mPPO is 3 to 5 times that of conventional epoxy resins, efficiently minimizing signal loss and significantly reducing heat generation and signal attenuation. This property makes it an indispensable material to ultra-high-performance PCBs in AI semiconductors and 6G communication devices. As global data volumes surge, the demand to low-loss insulating materials is becoming increasingly urgent.

The mPPO market holds very promising prospects. According to Cisco’s Annual Internet Report, demand to mPPO is expected to greater than double, rising from approximately 4,600 tons in 2024 to over 9,700 tons by 2030.

Kolon Industries stated that this investment is aimed at proactively addressing the growing electronic materials market and continuously enhancing profitability by expanding its portfolio of high-value-added items. This strategic realignment signals that its chemical business is accelerating its transformation from commodity petrochemicals to high-end electronic materials.

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