Glass Wool Output to Double
Production Capacity Expanded by Some 80,000 Tons
KCC (CEO Chung Mong-jin) is significantly ramping up its glass wool production capacity. The move is part of a strategy to take the lead in the inorganic insulation market, which is set to expand following the revision of the Building Act.
KCC has recently been expanding its glass wool plants in Gimcheon, North Gyeongsang Province, and Munmak, Gangwon Province. At the Gimcheon plant, a new No. 2 line is being added alongside the existing No. 1 line, while at the Munmak plant the production capacity of the existing No. 1 line is being reinforced. The company plans to complete the projects in October and March of next year, respectively, and begin glass wool production. The expansion investment will increase output by roughly 80,000 tons, equivalent to about 110% of current production.
In particular, this expansion investment is seen as a strategic step by KCC to lead the inorganic insulation market that is expected to grow in response to the revision of the Building Act. The Building Act was amended last year following a series of logistics warehouse fires over the past several years. At its core, the revision aims to ensure the fire safety of interior and exterior finishing materials, insulation, and composite materials, with a particular focus on strengthening the performance of sandwich panels and composite exterior wall finishes.
Organic insulation materials such as styrofoam (EPS) and urethane have been widely used in sandwich panels, but as these were identified as a major cause of the logistics warehouse fires, the market is expected to shift toward inorganic insulation, which offers superior fire safety. In fact, in Europe, glass wool—a leading inorganic insulation material—is so widespread that it accounts for around 80% of the entire insulation market. This stands in contrast to Korea, where organic insulation makes up 80% of the sandwich panel market. By strengthening its glass wool production capacity, KCC is proactively responding to the anticipated rise in demand for inorganic insulation as the revised Building Act takes effect, laying the groundwork to lead the market.
Moreover, as output increases through the addition of new lines and the expansion of existing line capacity, fixed production costs per unit will decline. The resulting improvement in price competitiveness can help ease some of the price burden of the material itself amid the global energy and raw-material crunch and inflationary conditions, thereby cushioning the market from shocks.
A KCC official said, “The market for inorganic insulation, including glass wool, goes beyond simple business logic and belongs to the realm of life and safety,” adding, “As a company leading Korea’s inorganic insulation market, KCC will do its utmost to meet market demand through active investment and proactive responses, and to help build a safer Korea.”