Kolon Industries to Fight Court Decision
RICHMOND, Va., Sept. 14, 2011 /PRNewswire-USNewswire/ — Kolon Industries issued the following statement after the jury decision in favor of plaintiff E.I. DuPont de Nemours and Co. in a case before the U.S. District Court of the Eastern District of Virginia (Richmond Division):
Today’s verdict is the result of a multiyear campaign by DuPont aimed at forcing Kolon out of the aramid fiber market.
Although Kolon respects the decision rendered by the Eastern District of Virginia jury, it disagrees with the verdict and is confident that a fair and favorable decision will be reached on appeal.
Kolon has a strong technology and patent portfolio and a long history of research, innovation, and development in various fiber industries, including work in aramid fibers dating back to 1979.
Kolon had no need for and did not solicit any trade secrets or proprietary information of DuPont, and had no reason to believe that the consultants it engaged were providing such information. Indeed, many of the ‘secrets’ alleged in this case are public knowledge.
Kolon has solid legal and factual grounds on which to base an appeal, and will aggressively pursue all available legal avenues to correct today’s verdict.
In the meantime, Kolon will continue to vigorously prosecute its antitrust action against DuPont, which is scheduled to be tried in March 2012.
Kolon Industries: Corporate History
Kolon Industries, Inc. was founded as Korea Nylon Inc. in Daegu on April 12, 1957. In the 1960s and 1970s Kolon Industries led the nylon fiber boom in Korea. With the advent of polyester, Kolon established Korea Polyester Inc. in 1969. Korea Nylon and Korea Polyester integrated operations in 1972 and the production of tire cords as part of the combined companies’ business and product diversification strategy laid the foundation of the company’s future growth.
Starting in 1985, the company began operating film, video tape and medical businesses as part of its business diversification strategy. In the 1990s, Kolon Industries, Inc. became the first Korean company to manufacture polyester spunbond and with its synthetic fiber manufacturing technology became a large materials maker specializing in polymers and precision chemicals.
In 1994, the company began manufacturing airbags. The company continued to develop proprietary technology and start new businesses, such as artificial leather and Chamude. Their PET film plant, established in Indonesia in April 1997, marked the beginning of the company’s expansion abroad.
In December 2009 the manufacturing and fashion division owned by Kolon Corporation became separated and started as a new company called Kolon Industries, Inc. After its separation, the company entered a stable growth phase and sharpened its competitive edge by focusing on four areas: industrial materials, chemical, films/electronic materials, and fashion. Now, the company stands on its own leading the growth of the Kolon Group.
Kolon Industries: A Pioneer in Intellectual Property
Kolon Industries established its first technology research center in 1978. Initial activities focused on basic textile research but as operations diversified, research expanded into plastics, films, magnetic recording materials and other polymer-related areas, as well as into high-tech specialty chemicals, new materials, and bioengineering. Kolon has used applied research to transform basic technologies into over 340 different products to date. In the process, Kolon Industries has received more than 3,000 domestic patents, the most in Korea’s synthetic fiber industry. The company has also secured over 200 patents in 30 other countries.
Kolon Industries: Growth and Performance
The company’s overseas subsidiaries are located in the US, Indonesia, Thailand, Japan, China and Germany. At present, Kolon Industries has 37 domestic affiliated companies and 16 foreign branch corporations.
For the fiscal year ended 2010, the company reported total revenue of KRW 3,241.1 billion, reflecting an increase of 46.3 percent, as compared to KRW 2,215 billion in 2009. In 2010, revenues of the company’s different business segments saw substantial increase with industrial material business up 28.7 percent, chemical up 39.4 percent, films up 32 percent, and fashion up 144.6 percent.
In 2010 the company’s operating profits also increased up 39.4 percent to KRW 251 billion from KRW 180 billion in 2009. Net income recorded a gain of 111 percent from KRW 100 billion in 2009 to KRW 211 billion in 2010. The company’s fashion, chemical and film business segments operating profits increased by 173.8 percent, 27 percent and 60.7 percent respectively.
SOURCE Kolon Industries