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The new factory established in NICCA KOREA CO., LTD. (NKR),
our South Korean subsidiary.

Interviewed in March 2020

In October 2019, NKR completed the construction of its new factory while it will mark the 50th anniversary of its founding in 2021. Started in developing and manufacturing textile processing chemicals, NKR expanded its business as one of our key bases in NICCA group. As a mother factory for fluorinated chemicals, NKR has established a system to increase the production of functional fluorinated chemicals, which are in high demand, in addition to water and oil repellents(*) that have been their main products until now. We interviewed Kim, the honorary chairman, and the president Morishita about the background of establishing the new factory and their thoughts upon reaching the milestone of the 50th anniversary.

KIM Kyung Jae

Representative Director Honorary Chairman
NICCA KOREA CO., LTD.

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MORISHITA Yoshiyuki

Representative Director and President
NICCA KOREA CO., LTD.

morishita.jpg
History

In 1971, when the textile processing industry began to move from Japan to South Korea and Taiwan due to labor costs and other factors, NKR was established as a joint venture between Sankei Bussan (now KOLON Industries, Inc.) of South Korea and our company. The factory of NKR is located in Daegu city, where is major area of processing synthetic fibers, and the headquarter is located in Seoul.

Since 1991,we have been conducting joint research as national projects with the South Korean Institute of Chemistry, a national research institute in South Korea. We have carried out joint research together on the entire process from research theme exploration to technology development and industrialization (commercialization), and have built up achievements. "Our major strength is that we are fostering human resources, mainly young staffs, who can handle everything from synthesis to factory facility designing. We have established a number of unique technologies in the synthesis of performance chemicals."(Kim)

Top Share of DWR(durable water repellent) markets in South Korea
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The whole view of NKR. The five-stories building on the left is our new factory.

The company's main products since its founding are textile processing chemicals. As mentioned above, among the research themes that have been developed as national projects in South Korea, fluorocarbon based water repellents, in particular, has relied on 100% imports in South Korea, but NKR has been producing them domestically. Today, NKR has the largest share of the South Korean textile processing DWR markets, accounting for about 30% of the market.

In recent years, global apparel and sports equipment companies is switching to use"PFC-free" DWR instead of using fluorin DWR , as they contain substances that are concerned to remain in the environment. We have been working on product development and production technology development of PFC-free water repellents before the movement spread. In the production technology development of this product, NKR and NICCA cooperated to realize industrialization, and NKR is currently responsible for the main production within our group. We supply the products to more than 10 countries, including customers in Mexico, India, as well as overseas bases in China, the United States, and Taiwan.

The President Morishita said, "NKR has a history of nearly 50 years domained in South Korea, and the brand strength of Made in Korea is an advantage." Both its fluorocarbon based and PFC-free water repellents have been accepted in the market as highly superior technologies.

Aiming to develop new markets with fluorinated chemicals

Fluorinated chemicals are currently being focused on as a new business by applying water repellent technology for textile processing. Fluorinated chemicals are materials used in special applications such as lubricating oils and greases used in manufacturing facilities for precision mechanical equipments, semiconductors, and displays, which are the major industries in South Korea, as well as soil release agents used in smartphones and lenses with excellent chemical resistance and high-temperature resistance. Different from inorganic chemicals such as hydrogen fluoride and fluoride gas, very few companies are engaged in the production of fluorinated chemicals, which are organic chemicals. The Company has succeeded in developing its own technologies and has become the only factory for the production of fluorinated chemicals in South Korea for such special applications.

Demand for fluorochemicals is increasing worldwide with the trend toward digital transformation. In particular, the increasing 5G of telecommunications networks is expected to accelerate the evolution and segmentation of digital technologies such as IoT and AI. As a result, a number of new niche markets are expected to emerge, and we expect to cultivate new markets by offering high-value-added fluorinated chemicals/fluorochemicals and solutions that meet the needs of customers in textile processing chemicals market.

Toward a new market with fluorinated chemicals
テープカット.jpg
Mr. Lee, the deputy mayor of Daegu Metropolitan City, also attended the completion ceremony, as a proof that the region is expecting us.

The aim of the construction of this new factory is to deepen the existing water repellent market and to build an increase production system in order to develop new markets for fluorinated chemicals.

The production capacity after the completion of the new factory is 14,000 tons per year, which is 1.3 times that of the former factory. NKR's sales plan forecasts about 6 billion yen in 2025, up from about 3.6 billion yen in 2018. This factory is required highly difficult reactions that are not performed by other factory. To improve safety and efficiency, we have implemented a system that is almost automated from the input of raw materials to the control of reaction. This system can be operated continuously for 24 hours.

In NICCA group's long-term visions "INNOVATION 25," fluorinated chemicals are positioned as one of our key strategic products. Chairman Kim reviewed NKR's progress to date, "It is very proud that we are playing a role as a fluorinated chemicals mother factory in NICCA group today," and he strongly stated, "We would like to expand the market globally in cooperation with each group company and with the strong export industry in South Korea."

Glossary

(*) Water and oil repellent
Processing agents that imparts functionality to repel water and oil in the fiber during textile processing processes.