South Korea aims to set up a carbon composite
materials manufacturing base by 2015 as part of efforts to fuel growth of the local automobile, industrial materials and renewable energy sectors, the government said Tuesday.
The Ministry of Knowledge Economy said it has earmarked 199.1 billion won (US$170.3 million) for the five-year plan that covers research and
development, prototype building and test-bed operations.
It said funds will go into the development of carbon fibers, carbon graphite and composite materials that are in high demand by manufacturers in the country and around the world.
The local market for carbon-based materials alone stood at 1.45 trillion won in 2008, but this is expected to grow to 2.43 trillion in the target year and surge to over 6 trillion won by 2025. This represents an annual average growth of 10.03 percent.
Carbon materials are only one-fourth of the weight of aluminum, but 10 times stronger than steel, making them ideal for use in airplanes, cars, wind power generators, ships and various construction materials.
"South Korea is the sixth-largest user of carbon materials in the world, but does not have a manufacturing base and has to rely on imports to meet its needs," a ministry official said. The country imported 160,000 tons worth of the materials two years ago with roughly half coming from Japan.
He said while South Korea's know-how in this field lags behind global leaders, benefit cost analysis and pace of technology developments indicate that it can catch up if appropriate levels of support are offered.
"If the infrastructure is built in a timely manner, local production can reach 3.2 trillion won, with 20,000 new jobs being created," the official said.
The ministry in charge of the country's industrial policy, meanwhile, said that North Jeolla Province in the southwestern part of the country will build two industrial complexes to house local carbon businesses.
Two industrial complexes to be built in Wanju and Jeonju will cover a combined 5,247 square meters of land with local authorities moving to set aside 859.1 billion won for the project. The province also pledged to offer various tax cuts and other incentives to investors.