Invest 25 billion won! South Korea's Dongsung Chemical expands production of LNG ship insulation materials

Dongsung Finetec, a subsidiary of South Korea's Dongsung Chemical, will invest a total of 25 billion won (approximately US$18.65 million) this year to increase production equipment for ultra-low temperature insulation materials for LNG ships to further expand production and meet market demand.

Dongsung Finetec said on October 24 that after investing 6 billion won to add ultra-low temperature insulation material production equipment for LNG ships at its Anseong plant in Gyeonggi Province at the beginning of this year, it decided to invest an additional 19 billion won to continue to purchase related equipment.

LNG has an ultra-low temperature of about -160℃. In order for LNG ships to transport LNG in the liquid state, it is necessary to maintain the corresponding temperature inside the cargo tank of the ship. Therefore, ultra-low temperature insulation materials should be used to make the cargo tank, so as to slow down the process of LNG absorbing environmental heat and accelerating vaporization, improve the cooling effect, reduce the evaporation of LNG and reduce energy consumption.

It is reported that since 2022, Dongsung Finetec has continuously received large-scale orders for ultra-low temperature insulation materials for LNG ships from shipbuilding companies. The current order amount has reached 2 trillion won (approximately US$1.493 billion).

In order to adapt to the demand for ultra-low temperature insulation materials brought about by the LNG ship market boom and further expand production, Dongsung Finetec decided to make additional investments in the construction of related production equipment.

In recent years, the use of LNG as a transitional environmentally friendly fuel to achieve carbon neutrality has been increasing. After the Russia-Ukraine conflict broke out early last year, the volume of LNG maritime transportation increased sharply, prompting a rapid increase in LNG ship orders. As a result, the demand for ultra-low temperature insulation materials necessary to maintain LNG in its liquid state is also increasing.

Dongsung Finetec said that after the expansion project is completed, the company will have the ability to produce ultra-low temperature insulation materials for about 30 LNG ships with 174,000 cubic meters per year, expanding its production capacity by 50% in 2022. The company plans to complete the expansion project and officially put into production in the second half of 2024.

A source from Dongsung Finetec said, The company hopes to expand production capacity and reduce costs by introducing more automation equipment while investing its own capital to increase production facilities. In addition to the current main product Mark-III ultra-low temperature insulation material, the company will also study the addition of new thermal insulation material production line to actively respond to customer and market needs."

Dongsung Finetec is one of the two major thermal insulation material manufacturers in South Korea, and is also one of the three LNG thermal insulation board suppliers in the world that have obtained the French GTT certification. The company not only provides ultra-low temperature insulation materials for LNG ships, but also provides comprehensive solutions such as the development of thermal insulation materials for liquefied carbon dioxide storage tanks and liquid hydrogen storage tanks, and the design, analysis and production of fuel storage tanks for LNG powered ships, contributing to the transformation of the environmental protection model and strengthening the competitiveness of the Korean shipbuilding industry.