Hyosung Group’s Chairman Cho Hyun-joon and Saudi Aramco CEO Amin H. Nasser sign a memorandum of understanding on Jun 25, 2019. [Photo provided by Hyosung Group]

South Korean textile and chemical conglomerate Hyosung Group and Saudi Arabian oil company Saudi Aramco have signed an agreement for an extended strategic partnership that would include a joint venture in carbon fiber production, the Korean company said on Thursday.

Under the memorandum of understanding signed between Hyosung chairman Cho Hyun-joon and Saudi Aramco CEO Amin Nasser in Seoul on Tuesday, the two sides will cooperate in development and production technologies for carbon fiber and review a plan to build a carbon fiber manufacturing facility either in Saudi Arabia or Korea.

The two sides also agreed to work together on advanced new materials, energy storage system and power grid systems.

[Photo provided by Hyosung Group]

Sources said Hyosung introduced the competitive advantage of its mainstay advanced new materials such as Polyketone, a high-performance thermoplastic polymer with a high melting point, and propylene produced from propane dehydrogenation (PDH) and proposed cooperation to the world`s largest oil company.

Cho continued discussion about business cooperation with the Middle East Country with top Saudi officials during a welcoming lunch session held at Cheong Wa Dae on Wednesday, which was arranged on the occasion of Saudi Crown Prince Mohammed bin Salman`s visit to Seoul.

The new MOU represents an extended partnership between Hyosung and Aramco. In March, the two signed an agreement cooperate in the chemical, new material and hydro businesses. Aramco officials toured Hyosung’s carbon fiber facility in Jeonju, North Jeolla Province that time.

By Lim Hyung-joon and Minu Kim

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