Kolon Industries will invest 24 billion won ($18 million) to increase the production of pure monomer resin, or PMR, to cope with the expanding electric vehicle market and the increasing demand for EV tires, the company said Monday.

The South Korean chemical and industrial materials maker plans to boost its annual production capacity at the PMR manufacturing plant in Yeosu, South Jeolla Province, by 10,000 metric tons to 21,000 tons. The expansion is projected to be completed in the first half of next year.

Kolon Industries said the expansion will put the company atop the list of global PMR makers in terms of production capacity. The company plans to solidify its leading position by securing a stable supply chain and an upper hand in cost competitiveness.

PMRs are used as special additives for producing high-performance tires and electric cables due to their heat stability and high adhesion. Vehicle tires using PMRs can advance the braking ability and driving safety of EVs, which are about 30 percent heavier than cars with internal combustion engines due to the weight of batteries.

The company said the PMR production, which began last year, has been operating at full capacity to meet the demands of the growing EV market and for high-performance tires across the world.

According to market research firm Fact.MR, the global PMR market is expected to reach $2.22 billion by 2032 with a compound annual growth rate of 5.8 percent.

“We are expanding the production capacity to cope with orders from customers in a timely manner as the high-performance tire market, which has been centered around premium vehicles, is moving toward the EV sector,” said Park Jun-hyo, head of Kolon Industries' PMR business.

“As the No. 1 PMR company in the country, we will actively expand our specialty business to advance our portfolio and create profits.”