Hyosung Plans To Increase Nitrogen Trifluoride Production In South Korea, China

South Korean company Hyosung is planning to increase the production of Nitrogen Trifluoride (NF3) by establishing and adding production plants in South Korea, China.

NF3 is a chamber cleaning gas used to build semiconductors, flat panel displays and other electronics.

As per the expansion plan, Hyosung's chemical business is expecting to invest around KRW200bn ($165.77m) to build a new NF3 production plant in Quzhou, a city in China's southwestern Zhejiang province.

The proposed plant, with a capacity of 2,500t per year, is scheduled to be completed by first the half of 2017.

Additionally, the company will invest another KRW100bn ($82.88m) in its Ulsan plant in South Korea to increase the production capacity of the plant by 1,250t a year. The Ulsan plant's new production unit will be operational in March this year.

Hyosung Group president Cho Hyun-Joon said: "The construction of a new plant in China is our strategic move to pre-emptively respond to the Chinese market's exploding demand for semiconductors and displays."

The company is involved in the manufacturing of textile and industrial materials including spandex and tire cords and with the proposed NF3 plant, Hyosung's chemical materials unit will establish its first overseas plant in China.

The company also plans to reduce production and logistics costs, as well as meeting increasing demands in the local and global markets from the proposed plant in China.

Over the decade, Hyosung expects to invest KRW600bn ($497.31m) in Korea and China, and to reach a total production capacity level of 10,000t per year, locally and internationally, reports Business Korea.

The company has already developed and commercialised its own NF3 gas processing technology.