[Very Invited Seat] Jeong Jin-ho, CEO of Cartech H, “We will become the world’s No. 1 with recycled carbon fiber”
Looking for shoe materials, I opened my eyes to eco-friendliness… I started a business that way
Headache in the non-rotten ‘dream fiber’ CFRP treatment
Recover more than R-CF 95 with eco-friendly and low-cost technology
Love calls from overseas such as Solvay and Mitsubishi Chemical
Building a factory in Jangsu to meet global demand
There is a company that domestic and foreign companies, such as Hyundai Motor Company and Solvay, are paying attention to. Cartech H, a company specializing in recycling carbon fiber reinforced plastics (CFRP), has an unrivaled technology. CFRP is a key material for future business transformation of major companies, and its recycling technology is considered a key to ESG management.
Jeong Jin-ho, president of Catech H, who met with a reporter at a cafe in Seoul on the 9th, said, “Inquiries from companies in each country for technological cooperation are flooding in.” It is because whether or not it is possible has become the main topic,” he said excitedly. On this day, he was also in a situation where he split his busy time after meeting with a company requesting collaboration to answer an interview.
Regenerated carbon fiber (r-CF) produced by Catech H with its own technology. [Photo = Provided by Catech H]
The problem is that recycling of CFRP is not easy. Some companies do not find a way to incinerate or landfill, but they are suffering from harmful gases and do not rot. Governments around the world are also struggling with how to deal with waste CFRP along with regulations. This is the background in which President Jung jumped into the wasteland with expectations for the CFRP recycling business.
CFRP is an ultra-high-strength fiber that weighs only one-fourth of iron and has more than 10 times the strength of iron. As of last year, the global CFRP market reached 180,000 tons, or about 42 trillion won.
“Last year, the regenerated carbon fiber (r-CF) market is estimated at 3 to 4 trillion won, about 1/10 of the CFRP market,” said President Jung. We have the technology to produce high-quality, environmentally friendly r-CF.”
In fact, Cartech H’s r-CF production technology is so high that it is evaluated that there is no competitor in the global market. Established in 2017, Katech H has developed an eco-friendly recycling technology that recovers more than 95% of r-CF from waste CFRP in a low-temperature environment of 100°C or lower and atmospheric pressure, using a chemical method that adds inexpensive additives to water.
Existing thermal incineration methods mainly use thermal incineration, which burns at high temperatures of 600 ° C or higher, causing environmental pollution and high cost. In the case of Korea, even this cannot be done, so virtually all CFRP from the manufacturing process has been incinerated or landfilled.
Catech H’s r-CF production technology is also superior in price competitiveness. It is about 1/10 the cost of treating the same amount with the existing thermal incineration method.
“We received r-CF production technology from the Korea Institute of Science and Technology (KIST) in 2017, and over the past four years, we have improved the technology and developed a mass production process,” said President Jung. I am going,” he said.
In 2019, Catech H built a continuous process line with a capacity of 200 to 300 tons per year at its Hwaseong plant. Last year, as investment continued in Corona 19, it was possible to add a batch processing line with an annual capacity of 1,500 tons.
President Jeong said, “We will secure the world’s largest waste CFRP processing capacity of 6,000 tons per year by 2024 at the earliest to meet domestic and foreign demand. To this end, we are preparing to establish a large-scale r-CF production plant in Jangsu, Jeonbuk.” said.
Jeong Jin-ho, CEO of Cartech H. [Photo = Reporter Yoo Dae-gil]
The following is a Q&A with President Jung, who dreams of becoming the world’s best r-CF producer.
-The reason for entering the barren r-CF market “It can be said that it was luck to come into contact with r-CF. In 2016, I found out about r-CF while looking for a carbon fiber material to be applied to shoe production. We expected that CFRP post-use treatment and r-CF production would emerge as the core of eco-friendly management in the global market, and we invested everything without a doubt.”
– The reason why we were able to be confident in our technological competitiveness “The r-CF production technology transferred from KIST is a chemical process that is eco-friendly and incomparably more economical than the existing thermal incineration method. Even if we simply consider the recovery rate of raw materials, the thermal incineration method is less than 80%, but our ‘s technology boasts about 90% or more r-CF quality compared to fibres, and maintains more than 95% of the physical properties, so many companies covet the technology as it is practically no different.”
-How did you raise the money? “As it has unrivaled technology, it was relatively easy to attract investment. It is still in progress to the extent that Knet Investment Partners additionally invested 3 billion won last May. Most of the project costs are covered by investment. Currently, KIST and Ilshin Chemical Industries are participating as major shareholders.”
– It is said that domestic and foreign companies are courting. “Basically, our business is divided into two: recycling of CFRP and production of r-CF. In terms of recycling, Hyundai Motor’s hydrogen fuel storage tank and Korea Aerospace Industries (KAI)’s Surion helicopter are currently used in the manufacturing process. CFRP crumbs (scrap) are being recycled In addition, considerable discussions were held with not only domestic companies such as Lotte Chemical, Korean Air, Hanwha Q Cells, and Ilshin Chemical Industries, but also overseas companies such as Solvay, Mitsubishi Chemical, and Carbon Revolution. Companies are considering establishing corporations and factories in the United States, China, Europe, and Australia upon request.”
-The purpose of the Jangsu factory is “It is a next-generation plant following the Hwaseong plant. It is planned to be built as an eco-friendly smart factory, and the production scale will be prepared in preparation for the growth of the global market over the next 10 years. It is designed to produce even the applied products of r-CF that global companies are requesting. .When completed, Catech H’s waste CFRP processing capacity will be 6,000 tons in addition to the existing Hwaseong plant’s 1,500 tons. It is the world’s largest scale. Through this, we will become a leader in the growing market with eco-friendly and low-cost strengths as weapons.”
-Sales target “Assuming that the current Hwaseong plant is fully operational, annual sales of 15 billion won can be captured just by CFRP treatment. If incidental income is taken into account, it is expected to greatly exceed this figure. When cooperation with companies starts in earnest and sales start to come from the longevity factory, it is expected that the company will be able to achieve a quantum jump in performance. I am confident that the global market will be able to quickly realize it while emphasizing ESG.
Jeong Jin-ho, CEO of Cartech H. [Photo = Reporter Yoo Dae-gil]
European Commission President Ursula von der Leyen speaks after a meeting with representatives of the European automotive industry as part of a strategic dialogue on the future of the European automotive industry on March 3, 2025 in Brussels, Belgium. Reuters
The European Union’s recent announcement that it would ban the use of carbon fiber in the automotive industry has caused a stir in the industry. The EU pushed for tougher sanctions, citing the potential harmfulness of carbon fiber and a lack of recycling infrastructure, but faced stiff opposition from major manufacturers in Japan and South Korea, as well as the automotive industry at large. We eventually put the plan on hold, but the essence of the problem remains. The EU’s message to the global materials industry is clear. No matter how high-performing a material is, it is difficult to gain a foothold in the European market without a comprehensive consideration of environmental impact, safety, and recycling schemes. This could have a major impact across industries.
Carbon fiber is considered a key material for the next generation of green industries due to its lightweight and strength. However, the manufacturing process consumes a lot of energy, and composites are difficult to recycle. While supporting a green industry, it can also create other environmental problems. It is this contradiction that the EU has noted in its regulatory drive. While the benefits are clear, the EU’s shift in stance is significant in that it calls for regulations and policies that take into account recycling and environmental burdens.
The EU’s regulations go beyond environmental issues and take on the character of strategic industrial policy. Currently, the market is dominated by Japanese and South Korean companies, and the EU is looking to increase its material independence in the region and ensure sustainable supply chains. This announcement and retraction is just the beginning. The EU is likely to strengthen the competitiveness of its materials industry and introduce stricter regulations on carbon fiber in the long term.
Governments and industry must act quickly to ensure the sustainability of the carbon fiber industry. Current pyrolysis methods have limitations in terms of energy consumption and recycling rates, and chemical recycling is needed to strengthen circular recycling. In particular, the application of new epoxy resins with circular and recyclable design is emerging as an alternative. These technologies will play an important role in increasing the recyclability of carbon fibers and minimizing their environmental impact. Governments must also provide long-term policy support and invest in R&D.
The EU’s regulatory rollback is not just crisis avoidance. It’s a sign that stricter sustainability standards are coming. The EU’s withdrawal marks the beginning of a major shift, and it’s likely that stronger policies and regulations will emerge in the future. While this will provide the carbon fiber industry with opportunities to explore new growth strategies, it will also present greater challenges. The carbon fiber industry needs to explore new growth strategies with technological innovation and sustainability at the center, and is poised for bolder and more responsible development.
– Gohmoo Joo, Professor of Chemical Engineering, Konkuk University
Notice of Convocation of the 6th Regular General Meeting of Shareholders
I wish the shareholders good health and peace at home.
In accordance with Article 363 of the Commercial Act and Article 23 of the Articles of Incorporation, we hold the 6th regular shareholders’ meeting as follows. Please attend.
On April 1, 2022, in accordance with the provisions of related laws such as the Commercial Act and Article 9 of our Articles of Incorporation,
As the board of directors of Catech H Co., Ltd. held a resolution to issue preferred shares through a third-party allocation method, the following announcement is made.
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Type of new stock: redeemable convertible preferred stock
Number of new shares issued: 203,000 shares
Issuance price of new shares: KRW 7,500 in gold (par value KRW 500)
Total amount of capital increase: KRW 1,522,500,000 (issue price x number of shares expected to be issued)
Subscription date (subscription payment date): April 20, 21, 2022 (2 days)
Allocation method of new shares: 3rd party allocation (Based on Article 9 of the Articles of Incorporation (Preemptive Rights))
Purpose of financing: operating funds and production facility construction
Share payment date: April 25, 2022
Place of payment for stock: Woori Bank Gaepo Central Branch
Dividend calculation date for new shares: January 1, 2022
Other details regarding the issuance of new shares are left to the CEO, and this paid-in capital increase schedule is subject to change due to adjustments by the company or related organizations.
Notice of convocation of regular general meeting of shareholders
I wish the shareholders good health and peace at home.
In accordance with Article 363 of the Commercial Act and Article 23 of the Articles of Incorporation, we would like to hold the 5th Annual General Meeting of Shareholders as follows. Please attend.
Announcement on convocation of extraordinary general meeting of shareholders
I wish the shareholders good health and peace at home.
In accordance with Article 365 of the Commercial Act and Article 25 of the Articles of Incorporation, we would like to hold an extraordinary general meeting of shareholders as follows, so please attend.
– under –
1. Date: December 3, 2021 (Friday) 10 am
2. Venue: Meeting room of the head office
3. Meeting purpose
Item 1: Appointment of directors
Other non-executive director Kim Jin-pyo (Born on April 19, 1971)
4. Materials to prepare for attending the general meeting of shareholders
1) Direct event: ID card, personal seal, shareholder seal certificate 1 copy
2) Proxy event: power of attorney (seal stamped), 2 copies of shareholder seal certificate, agent’s ID
Attachment: power of attorney (form), notarized power of attorney
※ In order to prevent the spread of COVID-19 within the business site, we are operating by restricting access to outsiders. Shareholders who have received a notice of convocation of the general meeting of shareholders in advance should give their opinion to the company in advance for those who wish to attend, so that measures can be taken.
November 18, 2021
CEO of Catech H Co., Ltd. Jeong Jin-ho [Junji omitted]
Katech H Co., Ltd. (CEO Jeong Jin-ho) won the grand prize in the carbon fiber composite material recycling category at the Money Today ‘2021 Korea Innovation Awards’.
CEO Jeong Jin-ho and executives and staff/Photo courtesy of Cartech H.
The 2021 Korea Innovation Awards were established to praise and encourage the contributions of innovative companies such as technology, management, and products, in line with the government’s efforts to overcome the economic downturn and the current time when pan-national participation is required.
CATECH H (CEO Jeong Jin-ho), a carbon fiber composite material recycling company, has transferred technology for ‘carbon fiber composite material (CFRP) recycling technology’ with KIST (Korea Advanced Institute of Science and Technology) through continuous research cooperation over the past three years to produce high-quality recycled carbon. It has the technology to recover fibers and epoxy.
Carbon fiber is a high-tech material that is attracting attention as the ‘rice of the future industry’ to replace iron. It is 4 times lighter than iron and 10 times stronger, and can be applied to all products that use iron as a key material for the transition to the hydrogen economy. is being popularized as
In particular, Korea has declared the ‘Hydrogen Economy Era’ and plans to produce 6.2 million units by 2040 for the hydrogen car era, and the most important part here is the hydrogen tank made of carbon fiber.
Carbon fiber reinforced plastic (CFRP) is a composite material composed of carbon fiber and epoxy resin, and is used as an essential raw material in the overall industries such as aerospace, automobiles, ships, household goods, and sporting goods such as helmets and skis. Currently, automobiles in Australia and Europe , is under discussion for parts and materials in the aerospace field.
“In the B2B business structure, a two-way business in the form of collecting waste carbon fiber, processing it, and re-supplying it is possible,” said CEO Jeong Jin-ho of Cartech H. We will create a global standard for recycling textile composite materials.”
Announcement of Extraordinary General Meeting of Shareholders
In accordance with the provisions of related laws such as the Commercial Act and Article 28, Paragraph 4 of our Articles of Incorporation (transfer of all or more than half of the company’s business and assets), Transfer of all or one-half or more of the operating assets of another company) To hold an extraordinary general meeting of shareholders, the following announcement is made.
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1. Extraordinary shareholders’ meeting date and time: July 29, 2021, 10:00 a.m. Main branch conference room
2. Agenda: Confirmation of major agreements for business transfer of Donghyun Chemical
– On July 1st, Donghyun Chemical and Catech H Co., Ltd. decided on major agreements for business transfer agreed between the two companies. Extraordinary shareholders’ meeting
July 14, 2021
CEO of Catech H Co., Ltd. Jeong Jin-ho [Junji omitted]
The national control tower and investment plan must be strengthened, and long-standing problems such as lack of collaboration between ministries must be addressed first. In order to maintain industrial competitiveness while achieving the goal of carbon neutrality, regulations are limited. Systematic and step-by-step adaptation is required. It is necessary to increase acceptance and support the cultural power of citizens through constant education in civil society, children and youth.
The recent G7 summit was held in Cornwall, England. Because of Corona 19, the leaders of major countries who met after two years dealt with carbon neutrality as a key topic along with infectious disease response and human rights. Leaders of major countries agreed that in order to achieve the 2050 carbon-neutral goal, global cooperation and rule-setting are necessary along with the efforts of each country. Carbon neutrality has fallen to the fire of the feet of the whole industry, nation, and individual. It is demanding sweeping changes from energy to industrial methods to lifestyles and mobility. Experts in industry, academia, and research have ordered specific actions for carbon neutrality.
<interlocutor> Min Dong-joon, Professor at Yonsei University, Chairman of the Green Steel Committee, Park Hyeon, Executive Vice President, POSCO (Environmental Business Dept., Director) Kyung-ho Shin, Director of the Institute for Science and Technology Job Promotion, President of the Korea Institute of Metals and Materials Young-sook Yoo, Chairman of the Climate Change Center, Former Minister of Environment Jang Woong-seong, Director of the Institute of Convergence Innovation, Inha University Eun-mi Jeong, Institute for Industrial Economics & Trade, Growth Engine Industry Research Head of Division Jeong Jin-ho CEO of Cartech H Ahn Gyeong-ae Digital Times ICT Science Division Director
◇ Jang Woong-seong = It is predicted that by 2100, it will cost about 2800 trillion won to relieve damages caused by climate change alone. After the launch of the US Biden government, the powerhouses competitively issued a 2050 carbon neutral declaration, and large-scale public and private investment became an irreversible flow. We, too, must unite the public and the private sector to bring about change. Developed countries such as the United Kingdom and the United States have completed related research in very specific ways to achieve carbon neutrality by 2050, and are also reaching consensus with the public. Korea is a country that emits a lot of carbon dioxide. Both the total emissions of the country and the emissions per capita are high. The amount of steel consumed per capita is also high. In developed countries, it peaked in the 1970s and 1980s and declined, but we still use 1,300kg per person. This is because manufacturing accounts for about 28% of GDP (gross domestic product) and makes a living from manufacturing exports. Recently, capital around the world is also focusing on carbon neutrality and ESG (environmental, social, governance) areas. If you do not practice ESG, it has become an era in which you are treated as a fool in the market.
◇Min Dong-jun = Now is the time to go beyond the grand discourse for carbon neutrality and prepare for action. So far, a globally standardized fossil energy price system has been applied, but green energy is differentiated depending on the production environment between countries. in that respect
For Korea, which is centered on manufacturing, to maintain national competitiveness and carbon neutrality at the same time, finding a green energy source that can sustain the lives and manufacturing of 50 million people is an urgent priority. Just as President Park Chung-hee created the current flagship and key industries such as highways, oil, steel, shipbuilding, and automobiles through the 5-year economic development plan in the 1960s, we must approach from the perspective of national reform. As the president declared carbon neutrality, we must come up with bold plans, incentives, and infrastructure investments suitable for him.
◇Yoo Young-sook = It is carbon neutral that it is difficult to stand on the 100th floor and feel precarious. Europe has continued to reduce carbon emissions since peaking in 1990, far ahead of us. The peak of carbon emissions in the United States was in 2007, and in Japan in 2013. We are in 2018. We need to reach carbon neutrality in half the time, which the EU aims to achieve in 60 years after peaking its emissions. It is a matter of the existence of the Republic of Korea, but it is too lax.
◇Jeong Eun-mi = In line with the direction of carbon neutrality, the Korean government has also set high goals. As we have a long way to go and are busy, we need to hurry up and make concrete means. In particular, we need a means for players to be confident.
First, we need to strengthen the national control tower and investment plan for carbon neutrality. The ‘2050 Carbon Neutrality Committee’, which was launched as a control tower, should be empowered to have the ability to execute policies, not just advisory and deliberative roles.
Preparations for the government’s preliminary feasibility study for carbon-neutral R&D investment are also starting, and at this rate, the budget will be executed from 2023 at the earliest. You need to speed up. A budget appropriate to the scale is also required. The Ministry of Science and ICT says it will invest a total of 1.8 trillion won to promote 10 R&D projects for carbon neutrality for 10 years. Approximately 18 billion won is allocated per task per year. However, the development of hydrogen reduction steelmaking technology alone is insufficient by 1.8 trillion won. You need to increase your investment.
◇Shinkyung = Everything from energy to materials to the entire industrial structure must change. In the case of energy, it is necessary to create a portfolio with the possibility open to various energy sources as well as renewable energy. In the case of the United States, it is said that it plans to increase nuclear power generation by 2050. We will expand green power and continue to develop hydrogen technology, but in the meantime, we must also find a solution to carbon emissions over the next 20 to 30 years.
◇Jeong Jin-ho= The issues of education and acceptability are also really important. The issue of cost burden for companies is also serious. However, I feel that the movements of foreign companies that I meet at industrial sites are much more agile than those of domestic companies. German and Japanese companies are visiting us to use carbon composite materials instead of metal in automobiles. These companies are planning to convert automotive metals to carbon fiber composites (CFRPs) by 2030 and are putting them into action. While promoting the hydrogen economy strategy, materials and parts are also changing accordingly.
◇ Ahn Gyeong-ae = Carbon neutrality has emerged as a key agenda for the government and the demands of the international community are becoming stronger, but if the government is pushed by speed and fails to faithfully prepare the contents, it will cause enormous side effects and post-costs, so it must be properly prepared from the beginning.
In particular, in order for policies to receive strong power within the government and lead to policies and investments, long-standing problems such as lack of collaboration between ministries, unrealistic preliminary examination system, and budget system need to be improved. Above all, the 2050 Carbon Neutrality Committee will have to operate as an organization with stronger execution power without stepping on the foot of the 4th Industrial Revolution Committee.
◇Min Dong-jun = I think the global agenda of carbon neutrality goes beyond competition between domestic and foreign companies and is a competition for survival among countries around the world, including Korea, China, and Japan. Countries around the world have established policies for technology, patents, trade, standards, border taxes, resources, carbon border taxes, and industrial reshoring, and are developing all-round competition mobilizing diplomacy, technology, and capital. The carbon neutral policy is not a simple environmental regulation. From the perspective of national competitiveness, it is necessary to establish a national strategy that links energy, diplomacy, trade, and capital. If the government fails to establish solidarity and cooperative relationships involving companies and private, financial, universities, and research communities under a meticulous strategy, Korea will inevitably fall into the ‘Valley of Death from Carbon Neutral Foot’.
◇Park Hyeon= Manufacturing accounts for 30% of all industries in Korea. Among developed countries, Germany and Japan are relatively high. We believe that we should aim for the German and Japanese models. In the process of Korea’s entry into an advanced country, it is necessary to think over what kind of social and economic structure would be desirable.
Posco declared a carbon-neutral policy on December 11 last year after internal deliberation and discussions with the board of directors. Japanese steelmakers also declared carbon neutrality at the end of last year and this year. Since 2013, when steel production reached an all-time high, several blast furnaces have been shut down and production has significantly decreased, making it easier to reduce greenhouse gas emissions in Japan, and the burden of reduction felt by the Korean steel industry, which continues to produce solid production, is completely different. From our point of view, it is unthinkable to reduce carbon emissions by reducing production. There is no choice but to make more forward-looking and innovative efforts.
◇ Jang Woong-seong = The conflict between the US and China and the war for technological supremacy are expected to eventually lead to a carbon neutral war. China ranks first in the world in many advanced technologies. In the case of steel, it is an industry that directly and indirectly employs more than 100 million people worldwide and has an added value of 2.9 trillion dollars. It is the second largest after automobiles. However, producing 1 ton of steel requires 2 tons of carbon dioxide. Steel accounts for 30% of all industrial carbon dioxide emissions. Then, if steel disappears, is there an alternative for mankind? Even if a car is made of aluminum or a house is made of carbon fiber, aluminum causes more carbon dioxide at 11.3 tons per ton. Steel is serious because mankind needs a lot of it. In other words, mankind still living in the Iron Age has no alternative. Steel is 100% recycled, which is unrivaled. In such a situation, the new iron civilization began to compete for supremacy in the era of carbon neutrality. The US-China conflict and competition for technological supremacy are intensifying, but this war is expected to eventually lead to a carbon neutral war. Competitiveness at the level of individual companies is not a problem. New players with strengths in IT and environment, as well as existing players, must participate and unite.
◇Min Dong-jun = The success of the carbon-neutral strategy depends on the establishment and implementation of a green energy strategy, which is a necessary and sufficient condition for moving from electrification to hydrogen. In order to electrify industrial energy in addition to the electricity required for people’s lives, the green electricity supply capacity must be at least three times higher than the current level. It is to change the entire structure of the country. Currently, Korea stocks more than 90 days worth of oil as an energy source, but how much electricity energy can be stored in the case of electrification? Is it possible to build a power energy storage system and an electric power system, and build a tremendous green infrastructure that changes natural gas into hydrogen? In addition, stranding or sunk costs due to the greening of the current manufacturing process are still a black box. Even if the government and industry complete technology for carbon neutrality, it is useless if electricity and hydrogen are not stably supplied. Green infrastructure policy should be a top priority national strategy.
◇Park Hyun= As an energy source for carbon neutrality, we must first look at how much demand can be met with renewable energy. Other energy sources that do not emit carbon must also be considered, and although there is a long way to go before commercialization, nuclear fusion power generation, which is mentioned as one of the future energy sources, must be looked at from a long-term perspective.
A specific strategy for securing hydrogen must also be established, but hydrogen is characterized by being produced in places where most of it is used in large quantities. This is because there are more restrictions on transportation than other energy sources. Attempts to convert hydrogen into ammonia and transport it between countries stemmed from such concerns. In the case of POSCO, in order to operate hydrogen reduction steelworks, it will have to receive a large amount of supply through a pipeline from a nearby hydrogen complex or transport hydrogen converted into ammonia from abroad. Considering the current cost of making molten iron, the price of hydrogen should be considerably lower than it is now. Of course, if the world shares the cost of carbon neutrality, the time to secure the economic feasibility of hydrogen can be advanced.
◇Min Dong-joon = It is still questionable how much electricity demand in Korea will be in 2050 and whether new renewable energy such as wind power and solar power can handle it. In this regard, a K-energy strategy optimized for Korea’s energy environment must be created through precise demand forecasting and analysis. In addition to new and renewable energy, it is necessary to reexamine and establish nuclear energy strategies such as SMR (Small Module Reactor). It is hoped that balanced content will be included in the national energy strategy established by the government.
◇Jeong Eun-mi = Carbon neutrality requires an approach on a different scale. It should be a national resolution, not a responsibility of individual companies or industries. Social investments that change the game must be made. The problem is that the period given to Korea is short. We have to do it in a short period of time and meet European standards.
Europe, which started the change first, is a strategy to advance into the global market by conducting R&D and creating a business model. If you fall behind in competition with them, you could lose a huge market opportunity. We shouldn’t bring what they developed and we should have a competitive edge. Carbon neutrality is a new rule that changes global industry and competition with the same weight as digital transformation. In the face of a huge change, our society must properly prepare and demand it from the industry. There are too many holes because I had to make a sudden big change. Who will pay that much money? From the calculation of the size of the investment to the financing plan, it is necessary to be specific.
◇Ungseong Jang= While the industry is developing technology, it is necessary to organize where and how to distribute taxes and regulations imposed on companies and the amount of carbon dioxide captured.
We need to create order by specifically thinking about what kind of benefits will be given to places that work hard and how to encourage the development of eco-friendly technologies.
◇Yoo Young-suk = Since Korea has grown rapidly in a short period of time, there are parts that have not been thoroughly taken care of. The Ministry of Environment, too, was relatively less concerned with waste as it was focusing on environmental pollution issues. However, since we have potential, we believe that even though it is a serious and difficult situation, we can overcome it. Education is very important. We need to constantly talk to civil society and children and youth to increase their acceptance. All people must understand and change. The cultural power of citizens who buy products made from recycled waste without hesitation should be supported. Traditional oil companies such as Shell and BP are switching their main businesses from oil to clean energy and declaring that they will achieve carbon neutrality by 2050. It is also attempting to transform into a comprehensive chemical company rather than an oil refinery. Businesses can be the means and most powerful actors of carbon neutrality. When societies work together, we can achieve both growth and carbon neutrality.
◇Min Dong-joon = In order to maintain industrial competitiveness while achieving the goal of carbon neutrality, there are limits to regulatory policies alone. Just as a person who runs 100m in 15 seconds cannot be forced to run in 12 seconds, systematic and step-by-step adaptation is necessary. The global issue of carbon neutrality requires Korea not only to take a new position in world politics and diplomacy, but also to change in all areas of the city, manufacturing, service, and agricultural and fisheries industries. need.
◇ Ahn Gyeong-ae = I think the people are ready for change. However, even if you want to do it, there is a lack of manuals that guide you on what to practice in detail. It is meaningful for individuals to make efforts such as using tumblers instead of disposable cups and reducing the packaging of delivery food, but for a change in scale to occur, a device that systematically helps is needed. It is thought that the public consensus and carbon reduction effect will be much higher if life-friendly carbon reduction plans and manuals are created and shared, from daily life to consumption, distribution, and logistics.
◇Jeong Eun-mi = What is noteworthy is that Europe and China approach carbon neutrality as an opportunity for growth, not cost, but investment. But going this way leaves us with nothing but costs. We need to change the social perception and seize the opportunity. The industry that will make this a reality must also be nurtured. If a company makes a steel grade that can reduce the weight of a facility from 100 tons to 80 tons, the price should be compensated. No one talks about cost, and no one should talk about value. Again, civil society must have acceptance for production, consumption, and circulation of products that go to carbon neutrality. No one talks about how much electricity bills will rise if you use renewable energy. We need to ask companies, ‘How much can we reduce, and what do we need to support and prepare for?’
◇Shinhoho = It is necessary to actively nurture the carbon-negative industry that absorbs carbon dioxide through photosynthesis of marine plankton or plants and produces fertilizers and high-functional foods. We also need a way to lower carbon by concentrating such industries around industrial sites that emit a lot of carbon.
◇Min Dong-jun= Industry is an organism that optimizes and adapts to a given environment. If the country entrusts homework only to companies and regulates them, companies need to worry about the carbon leak phenomenon, in which companies contemplate moving to a country that is favorable to carbon neutrality for survival. In order to evolve into a carbon-neutral economy, it is necessary to change the structure of the entire country and supplement the limitations of energy discontinuity with policies, finance, and technology. Bridging the discontinuity is not just technology. Efforts to persuade the public are also needed. The ambivalent policy that tells companies to do their own thing with the money they earn should not be used. If companies fail to make this change, the local economy and jobs will also suffer. To achieve carbon neutrality, you have to do a quantum jump like jumping over a cliff. 30 years isn’t a long time. Time is too short. In order for the industry to operate a production process that fits carbon neutrality, technology development and verification must be completed by 2040 at the latest, and facility investment must begin.
◇Woongseong Jang = In the steel industry, Korea is preparing for a challenge with a brand tentatively named ‘K-Gift’. The industrial cycle must be completely rewritten. The industrial structure must evolve by converging eco-friendly steelmaking, digital processing, and manufacturing services.
To this end, a platform strategy from the perspective of the entire industrial ecosystem is needed. Korea has developed and commercialized the world’s first FINEX steelmaking process in 2007. If you want to go to hydrogen reduction ironworks, you must have this technology. We are the only company that has mass-produced this technology. It is the biggest weapon that can occupy an advantageous position in the competition for supremacy. It is an opportunity to seize the hegemony of the New Iron Age. To this end, it is necessary to stably create and supply electricity and hydrogen in a green way. It is not simply a matter of technological development, but a matter of changing the map of Pohang.
◇Park Hyeon= For the steel industry, hydrogen reduction steel is the ultimate solution in the era of carbon neutrality. Rather than repeating the controversy over whether it is realistically possible, now is the time to put it into practice. We have been developing related technologies since the early 2000s, and it is expected that it will take a considerable amount of time in the future, but we will do our best to develop the technology by gathering the strength of related industry, academia, and research institutes. The key is to stably secure hydrogen in quantity and economy.
POSCO’s annual crude steel capacity is about 38 million tons, and if hydrogen reduction steel is applied, about 3.7 million tons of hydrogen are needed annually for reduction. In addition, in hydrogen reduction steelmaking, the process of reducing iron ore in a high-temperature blast furnace and then melting it is carried out separately, and green electricity must be used for this process. Based on the power capacity used, 3.7 GW (gigawatts) of electricity is required, which is quite large. Such green hydrogen and green power infrastructure must be established at the national level. A detailed roadmap must be established through national consensus and public-private agreements.
◇Min Dong-joon = More than 7 billion people around the world use 200kg of steel per person per year, and if we, which boasts the world’s highest energy efficiency, reduce our production scale, countries with less efficiency than us will produce steel while emitting more carbon dioxide. Remember. The steel industry’s responsibility is to perfect steel processes that maintain a comparative advantage over other countries in terms of carbon dioxide emissions. These technological competitions should be done with the utmost sincerity in that they will influence the national economy in the future. It should not be linked to political issues, and I hope that the government will carry out in an orderly manner under well-coordinated policies, programs, and financial policies. The Korean steel industry has valuable experience in developing and commercializing a new steel manufacturing process called FINEX over 20 years. The technological experience accumulated over 25 years from the basic research stage to the 2 million ton scale can be said to be a tremendous asset that cannot be found anywhere else in the world.
◇Park Hyun = Global cooperation is essential as the related investment burden is high. POSCO plans to hold a meeting in Korea in the fall after proposing international cooperation to the World Steel Association. Since 2002, POSCO has established a company-wide climate change strategy and sought specific action plans. If there is a recent change, in the past, the international community and the government mainly paid attention to corporate climate change measures, but now investors and clients are demanding it. POSCO is also paying attention to the activities of the TCFD (Financial Disclosure Council on Climate Change), which is organized around BlackRock. Many of our customers are not limited to reducing their own greenhouse gases, but are demanding that their suppliers reduce as well. In the case of automotive steel sheets, it is a request to develop and supply high-strength steel sheets that are lighter in weight and consume less fuel. These customer trends can be an opportunity for us to secure differentiated competitiveness. The company introduced the group’s carbon-neutral integrated solution, the ‘eAutopos’ brand, earlier this year.
◇Min Dong-joon= It took 21 years and a huge budget of 2.4 trillion won to make molten iron come out of a 2 million ton commercial facility in the basic research stage of the FINEX method, the world’s first commercialized smelting reduction process. Based on this experience, in order to develop the hydrogen reduction steelmaking process necessary for carbon neutrality, at least four FINEX-level technology development projects should be promoted. More than 20 years of patience and bold development investment of more than trillions of won are required.
In that respect, the size and duration of the national carbon-neutral technology development policy task currently pursued by the government is very worrisome. This is because, in the case of key industries, empirical research for commercialization is more important than basic research.
Such empirical research is a huge risk in that it is a comprehensive technology development that secures reliability across materials, process control, lifespan, productivity, and maintenance required for facilities, and at the same time provides new EPC (engineering, procurement, and construction) business opportunities. For reference, in the case of Japan and Europe, it cost about 100 million dollars to build a small 10-ton hydrogen steel test facility, and 300 million to 400 million dollars are required for basic facility investment alone. It is time for solidarity and cooperation between the government and the private sector.
◇ Jang Woong-seong = The domestic steel market is worth 100 trillion won, but the market for making steel mills is worth hundreds of trillion won. You have to invest and capture that market. The technology must be perfected while making large-scale facilities. It shouldn’t be like playing with a house, but it should produce smart results properly. Now, the steel industry is not an old industry subject to restructuring, but is recognized as a smart and eco-friendly new industry, and opportunities and markets must be created so that young generations in their 20s and 30s can enter this industry with a vision.
◇Shinkyungho = The key to change is for civil society to have an acceptance of carbon neutrality. That is the starting point, and on top of that, national infrastructure, green power, and corporate changes must follow. In addition, since carbon neutrality does not suddenly come true, related R&D must be continuously promoted and an ecosystem such as recycling must be created to deal with accumulated carbon before carbon neutrality.
In addition to manufacturing process innovation, recycling industries such as CFRP (carbon fiber reinforced plastic) are also important.
◇Jeong Jin-ho= Recycling is not just about reducing carbon dioxide, but is a very serious and important environmental issue. Most of the waste is landfilled or incinerated, which causes many environmental problems. The burning process consumes a lot of energy and releases a lot of carbon dioxide. To solve this problem, recycling should be done as much as possible.
◇Min Dong-jun = Carbon neutrality is an industrial transition, not technology development. You must teleport from point A to point B by taking the elevator, not the stairs. This means that it is not a gradual change, but a violent transition. The approach to carbon neutrality should be promoted as a basic premise of reduction in the production area. In cases where products are imported and used, such as in the United States and Europe, the optical illusion of shifting carbon dioxide emissions required for production to the country of manufacture is noteworthy. We need to properly look at the relationship between production and consumption of CO2 emissions. Social acceptance of eco-friendly products is still insufficient. Education to increase receptivity is very important. In order for true carbon neutrality to take place, whether you want it or not, social costs increase, and there must be an agreement that the public will pay a certain portion. As everyone knows, reducing the manufacturing industry can drastically reduce CO2 emissions. Then what are you going to eat? Given that manufacturing is our way of life, manufacturing companies must seriously develop and adapt to technology. In addition, it is necessary to conduct a carbon-neutral social campaign in which the government, businesses, and citizens agree and share the burden under the leadership of the state. In front of carbon neutrality, everyone is a sinner. Only when the national infrastructure is built on the premise of social acceptability can companies change with competitiveness.
◇Jeong Jin-ho = It is not because the government forced companies to change. Companies and capital move quickly if the market and consumers want it, even if it is not a policy. Consumer awareness drives companies. So education is important. Since we said that we would supply materials by recycling carbon fiber composite materials, many companies have made related requests. From automobiles to footwear and furniture companies, there is high demand to increase material recycling rates. They offer us to do a renewable material project together. Carbon neutrality can be a burden for businesses, but it can also be an opportunity.
◇Min Dong-joon = Our country’s resource circulation economy system should be built around the big axis of carbon neutrality. For example, by introducing the eco-design concept of German automobiles and increasing the recyclability of automobile parts, a virtuous cycle structure must be elaborated.
◇ Ahn Kyung-ae = There is also concern about the ‘carbon neutrality response gap’ between large companies and medium-sized and small businesses. Large companies are recently speeding up ESG management and making aggressive changes and investments, but small and medium-sized companies that lack investment capacity and information are inevitably slow to move. It is necessary to follow government-level guidance and support, and it is necessary to operate and lead an innovation ecosystem in which large companies lead medium and small companies in their supply chain.
◇Jeong Eun-mi = In order for resource recycling to work properly, a cycle covering product production, sales, disposal, collection, and reuse must operate. There is a limit for the Ministry of Environment to make a reuse policy.
In addition, it is also a problem that there is no indication of which product is made of which ingredient and material. Imported cars clearly specify which parts are made of which material, so it is easy to recycle when scrapped and dismantled. In our country, that is not possible. Only then can recycling be possible. Both producers and consumers should know and systematically recycle.
◇Min Dong-jun = When you buy snacks, the ingredients are written on the bag. Likewise, for home appliances such as TVs, if you indicate how much copper and other components are included in each part and model, the collector will be able to easily calculate. Opportunities can be created for businesses.
High-quality recycling of waste carbon fiber using water
Since catack-h transferred the ‘carbon fiber composite material recycling technology’ from KIST in November 2017, through continuous research cooperation for the past 3 years, high-quality recycling of waste carbon fiber reinforced plastics by chemical decomposition method using water It is the only company in the world that has developed the technology to recover carbon fiber and epoxy.
Carbon fiber is a high-tech material that is attracting attention as the ‘rice of future industry’. It is 4 times lighter than steel and 10 times stronger in strength. The most essential and important part of a hydrogen-powered vehicle that will lead the hydrogen economy is the hydrogen tank made of carbon fiber.
CEO Jeong Jin-ho said, “With the selection of the 15th Green Energy Excellent Company Award as an opportunity, we will strive to develop technology that coexists with the global environment and human life to get closer to Katech H’s vision of ‘Think earth, Think Human’.” revealed
The balance of seeing the world, Hankook Ilbo Copyright ⓒ Hankookilbo
(From left) Choi Hwan-jin, CEO of Trustar, Jeong Jin-ho, CEO of CATACK-H, and Lee Yong-woo, CEO of Itrion. /Photo = CATACK-H Co., Ltd.
CATACK-H Co., Ltd., a company specializing in carbon fiber recycling, plans to apply OT (Operational Technology) security to Smart Factory, which is scheduled to start construction next year, and establish it as a smart factory standard model.
CATACK-H announced on the 14th that it had held an agreement ceremony with Itrion Co., Ltd. and Trustar Co., Ltd. on the 13th to develop a smart factory construction model. CATACK-H is currently building the world’s largest renewable carbon fiber production smart factory with a capacity of 6,000 tons.
CATACK-H is the world’s first eco-friendly method that specializes in recycling carbon fiber (CFRP) used in helicopter bodies or bicycle frames and developing carbon fiber-based materials. The technology developed by the Korea Institute of Science and Technology (KIST) was transferred in 2017, and commercialization is currently underway.
According to this business agreement, Itrion will be in charge of introducing smart factory solutions and Trusta will be in charge of security solutions for OT security.
CATACK-H establishes this collaboration model as a smart factory standard and applies it to the construction of Katech H’s overseas factories, as well as plans to provide solutions and construction know-how to domestic and foreign companies that wish to build smart factories in the future.
“Through this consortium, we will create a global standard in the global renewable carbon fiber market,” said Jinho Jeong, CEO of CATACK-H. I will,” he said.
On the afternoon of the 30th of last month, CATACK-H Hwaseong Plant located in Yanggam-myeon, Hwaseong, Gyeonggi-do.
Upon entering the factory with the nameplate “Recycling Line 2,” five large drum washing machine-shaped machines measuring more than 2m in width and length were in operation. Inside the machine, waste CFRP (Carbon Fiber Reinforced Plastic) crumbs mixed with water and additives were running as if doing laundry. Established in 2017, the start-up Katech H has developed an eco-friendly recycling technology that recovers more than 95% of carbon fiber from waste CFRP in an atmospheric pressure environment and a low temperature of 100℃ or less, using a chemical method that adds inexpensive additives to water. Global companies such as Japan, the United States, and Europe are using CFRP recycling technology, but using thermal incineration, which burns at a high temperature of 600 ° C or higher, has problems with environmental pollution and high cost. Since there is no related technology in Korea, CFRP scrap from the manufacturing process has been incinerated and landfilled.
CATACK-H received the transfer of eco-friendly CFRP recycling technology from KIST (Korea Institute of Science and Technology) in 2017, and has been improving the technology completeness and developing a mass production process for four years. The Hwaseong plant will begin mass production in the middle of this month.
Jeong Jin-ho, CEO of Cartech H, said, “CFRP has been used in aerospace, weapons, bicycles, etc., but has recently expanded its use to automobiles, hydrogen fuel storage tanks, and wind turbines.” We are struggling to find a recycling solution,” he said.
CFRP is an ultra-high-strength fiber that weighs only one-fourth of iron and has more than five times the strength of iron. However, it was expensive and caused serious environmental pollution when disposed of. The global CFRP market has grown at an average annual rate of 8.2%, reaching 180,000 tons or about 42 trillion won in 2020. The carbon fiber market has grown by 20% annually, reaching 130,000 to 140,000 tons and 5 trillion won in 2020. The recycled carbon fiber market is estimated at 3 to 4 trillion won, about one tenth of the CFRP market.
The CFRP recycling market is dominated by thermal incineration by foreign companies such as Toray and Carbon Convergence, but pollution, high cost, and low recovery rate and quality have been the limitations. The technology developed by CATACK-H solves the environmental pollution problem caused by CFRP disposal and has the effect of lowering supply costs through recycled carbon fiber.
“We have completed a technology that recovers more high-quality carbon fibers by using low-temperature water and additives instead of burning them at high temperatures,” said CEO Jung. As a result, there is a big difference from the thermal incineration method, which are 85% or less and 70% or less, respectively.”
Cost competitiveness is also excellent. The cost of recycling 1 kg of carbon fiber is less than 10 dollars, which is much cheaper than the 15 to 20 dollars of thermal incineration. The initial facility investment cost is 1 billion won per 500 tons, which is 1/10, and the maintenance cost is 1 billion won per 20 years, 1/4.
In 2019, CATACK-H installed a continuous process line with a capacity of 200 to 300 tons per year at its Hwaseong plant, followed by a batch process line with an annual capacity of 1,500 tons last year. Centered around Kim Jong-il, a former engineer in the semiconductor industry, and director of the technology research institute, he continues technical cooperation with KIST, while expanding factories with investments from materials companies and venture capital. KIST also took a stake as the second-largest shareholder.
CEO Chung said, “Domestic and foreign companies that are concerned about recycling CFRP are sending waste composite materials to the company and asking if it can be treated.” More sales are expected,” he said.
Hyundai Motor Company commissioned hydrogen fuel storage tanks, Korea Aerospace Industries scraps from the manufacturing process, such as Surion helicopters, and Korea Carbon commissioned recycling of carbon fiber composite materials. Cooperation with domestic companies such as Iljin, Lotte Chemical, Korean Air, Hanwha Q Cells, and Ilshin Chemical Industries, as well as overseas companies such as Solvay, Mitsubishi Chemical, and Carbon Revolution, is being discussed. CEO Chung said, “With wind turbine blade waste alone expected to reach 43 million tons by 2050, the problem of disposal is expected to grow, so overseas companies are asking for recycling plans.” We plan to establish corporations and factories in Australia and other countries.”
The company is also preparing to establish a large-scale mass production plant in Jangsu nationwide. It plans to secure an annual processing capacity of 4,500 tons from this year to 2023 after obtaining government approval. The plan is to secure a total processing capacity of 5,000 to 6,000 tons by 2024 to meet domestic and foreign demand.
“If we secure 6,000 tons of annual processing capacity, we can become the world’s largest carbon fiber recycling company,” said CEO Jeong. We will be a game changer in a growing market.”
Yoon Seok-jin, president of KIST, said, “The role of public institutions, including KIST, is very important for implementing carbon neutrality. “Through this, we will provide the technological basis for transforming the entire industry into a low-carbon structure,” he said.
Regenerated carbon fiber made by recycling waste CFRP. Provided by CATACK-H
Announcement of paid-in capital increase by allocation to a third party
On April 21, 2021, in accordance with the provisions of related laws such as the Commercial Act and Article 10 of our Articles of Incorporation, The board of directors of Catech H Co., Ltd. held a resolution to issue common stock through third-party allocation method, so the following announcement is made.
– n ext –
Type of new stock: redeemable convertible preferred stock
Number of new shares issued: 600,000 shares
Issuance price of new shares: Gold 5,000 won (par value 500 won)
Total capital increase: KRW 3,000,000,000 in gold (issue price x number of shares expected to be issued)
Allocation method of new shares: 3rd party allocation (Based on Article 10 of the company’s Articles of Incorporation (preemptive rights))
Purpose of financing: operating funds and production facility construction
Share payment date: May 6, 2021
Dividend calculation date for new shares: January 1, 2021
Other details regarding the issuance of new shares are left to the CEO, and this paid-in capital increase schedule is subject to change due to adjustments by the company or related organizations.
