[Photo provided by Kolon Industries Inc.]

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South Korean textile giant Kolon Group is set for a big leap forward on fast migration to high-tech materials that go to engineering plastics for mobile network, electric vehicle and hydrogen fuel cell.

Its material and chemical unit Kolon Industries Inc. disclosed in its regulatory filing on Tuesday that its consolidated operating profit in the second quarter ended June reached 103.6 billion won ($90.48 million), surging 50 percent from a quarter ago and 181.78 percent a year earlier. Quarterly operating profit exceeded 100 billion won for the first time since the second quarter of 2011.

Net profit jumped 49.47 percent on quarter and 357.58 percent on year to 77.66 billion won, while sales added 8.59 percent from three months ago and 25.66 percent against the previous year to total 1.18 trillion won.

For the first six months, its operating profit soared 172.78 percent on year to 172.68 billion won, with sales up 17.75 percent to 2.27 trillion won.

Its earnings growth was largely driven by expanded sales of its aramid fiber, a key material for 5G network cables and high-quality electric vehicle tires. Amid the rapid shift in the mobility industry towards eco-friendly vehicles, Kolon Industries has been fully operating its aramid production lines to meet the surging demand for the high value-added fiber products.

Kolon Industries in June announced a large-scale investment plan to ramp up its annual aramid production capacity to 15,000 tons, nearly double the current 7,500 tons. The quality of its aramid is considered one of the world’s top three.

Its sibling Kolon Plastics Inc. also reported on the same day that its consolidated operating profit amounted to 8.27 billion won in the second quarter, up 21.2 percent from the previous quarter and swinging from a loss of 3.32 billion won a year earlier.

It earned 7.25 billion won in net profit, gaining 40.8 percent from three months and reversing from a loss of 2.36 billion won against a year earlier, while sales rose 5 percent on quarter and 87.7 percent on year to highest-ever 100.14 billion won.

For the first six months, Kolon Plastics successfully swung to an operating profit of 15.1 billion won on revenue of 195.51 billion won, up 48.4 percent on year.

The group companies’ upbeat results were largely owed to the group’s forward-looking, bold investments in new businesses. To focus on the future growth engines in 5G, EV and hydrogen material businesses, the group decided to close founding but money-losing fabric business led by Kolon Materials, now fully owned by Kolon Industries, the company announced on Tuesday.

High-tech materials will become its new mainstay.

Kolon Industries aims to focus on production of polymer electrolyte membrane for hydrogen fuel cells and membrane humidifier, while Kolon Plastics are developing materials for hydrogen tanks and engineering plastics in partnership with local carmakers, carbon fiber companies and materials firms.

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