Hankuk Carbon Co., South Korea’s manufacturer of composite materials, broke ground for its first overseas production facility in Vietnam to meet growing demand for composite materials.

The company said on Tuesday it has embarked on the construction of its plant that will produce prepeg carbon and glass fibers inside Becamex-Binh Phuoc Industrial Park, the largest industrial complex in southern Vietnam that is currently under development by state-owned property developer Becamex. The 4,633-hectare industrial zone will be used for industrial and residential areas with service facilities once its development is completed.

Hankuk Advanced Materials Co., a unit under Hankuk Carbon, has joined hands with other Korean companies Yong Sung, River Runs, and Mi Sung to build plants in the industrial zone. The Korean company aims to complete the construction of its plant within this year to start its operation next year.

An unnamed official from Hankuk Carbon said global demand for composite materials has been on a steady rise in the era of fourth industrial revolution, adding that the company’s new manufacturing facility in Vietnam should help it meet such high demand for composite materials.

Hankuk Carbon’s mainstay products include not only composite materials but also ultralow insulation materials used in liquefied natural gas (LNG) storage. Local brokerage DB Financial Investment Co. recently painted a rosy outlook for the company’s ultralow insulation material business that accounts for 65 percent of its total sales, citing an increase in the number of LNG shipbuilding orders. The company’s LNG insulation panel business is projected to rebound in the first quarter of this year, according to DB Financial Investment.

Shares of Hankuk Carbon ended at 6,780 won ($6.3) on Tuesday, up 0.89 percent or 60 won from the previous session.

By Ahn Byung-joon and Lee Eun-joo

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