Hyosung and Kolon, the two long-time rivals in the South Korean textile business as well as many other businesses including spandex, carbon fiber, tire code and imported car, face one another in a new playing field of hydrogen fuel cells.

According to industry sources on Friday, both companies declared fuel cell vehicles as their new growth engine and are rushing to expand their respective business. Hyosung is broadening its fuel cell charging network. In December of last year, the company installed a 700-bar fueling system at a fuel cell charging station for Hyundai Motor cars in Yangjae, Seoul. The 700-bar hydrogen refueling system features high throughput supply with a high pressure container compared with existing systems. On Feb. 23, the company joined a government initiative to create a hydrogen fusion alliance designed to promote fuel cell vehicles and expand hydrogen filling infrastructure.

Kolon, which began a project to develop hydrogen fuel cell technology in 2006, introduced a membrane electrode assembly (MEA) from U.S.-based Gore late last year, a key component for power generation in the hydrogen fuel cell system. It is a very lucrative component whose value accounts for about 40 percent of all fuel cell costs. Kolon Industries, the chemical and fashion unit of Kolon Group, aims to take a leadership position in the fuel cell vehicle market around its fuel cell division acquired from Samsung SDI last May.

Hyosung expects its besieged carbon fiber business will be stabilized earlier than expected thanks to the positive outlook for the fuel cell vehicle market, as carbon fiber is essential to making fuel cell vehicles lightweight.

Hyosung entered the carbon fiber market but has faced challenges in finding profitable clients in competition with Japan’s traditional stalwarts like Toray and Teijin. But expectations are growing for its business as the Korean government is in full support of expanding the fuel cell vehicle market, while Korean companies are narrowing the technology gap with Japanese rivals in carbon fiber technology.

Kolon is also expected to see a surge in the supply of carbon fiber-based composites around automobile plastics.

By Kang Young-woon

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