Kolon Group is reportedly considering halting its production of chemical fiber yarn, which has been suffering from accumulated losses for several years.
The yarn business such as nylon and polyester is the core project of Kolon Group. However, a Kolon official said, "The company is considering various options as it has been in a difficult situation for many years, but it has not decided on any specific issues such as the suspension of operation of the plant."
According to multiple media outlets on Feb. 19, Kolon is agonizing over whether to stop operation of the yarn production line of Kolon Fashion Material, which produces nylon yarn and fabric.
Kolon Material has made losses worth billions of dollars every year since it converted into deficit with a loss of 6.7 billion won in 2014. The deficit reached 44.7 billion won in 2017 and 13.4 billion won in the first half of last year alone.
"Kolon has decided to stop operating its production lines and notified Korea Capro (yarn raw materials) and ICEI Woobang (lubricating oil) that it will hold orders for raw materials in March," the Money Today reported.