Compounder Korea TR Co. Inc. is spending about 2 billion won ($2 million) on a new compounding plant, to focus in particular on wood-plastic composites.
The Siheung, South Korea-based firm is building the 108,000-square-foot facility in Hwaseong, South Korea, and will move some of its nine extrusion lines there by midyear, said director M.C. Shin.
The company wants to separate its rubber and plastics businesses and keep its existing plant focused on rubber, which accounts for more than 80 percent of its more than 9.7 billion won ($10 million) in annual sales, he said.
He spoke during an interview at the KoPlas 2006 International Plastics and Rubber show in Seoul.
Korea TR uses waste plastics like polystyrene, polypropylene and polyethylene to make up about 20 percent of its wood composite, which is used in applications ranging from golf tees to swimming pool decks, Shin said. The South Korean market for the material is small but is expected to grow, he said.
The company has an annual capacity of about 26.4 million pounds. Shin said Korea TR has been focused on exports, as the Korean domestic market has slackened. The firm did about $3 million in export sales in 2005, mainly to South America, Southeast Asia and the Middle East.