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Korea: Polyester Filament Industry Under Restructuring

Hankook Synthetics Inc., Tongkook Corporation, Toray Saehan Inc. and Hyosung Corporation started reducing their production of commodity-type polyester filament yarn in May, following Daehan Synthetic Fiber Co., Ltd. and Kumkang Trading Co., Ltd. Korean polyester filament makers had losses of more than 300 billion won last year due to oversupply. There has been no substantial reduction in production capacity in the past several years despite the protracted slump.

Some makers have reduced their production capacity for commodity items. For instance, Kolon Industries, Inc. cut its capacity by 3,000 tons per month last year, while the production of value-added items was increased. However, the ...

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