Hyosung Group said Monday that it would create a research and development cluster for carbon fiber, a highstrength, low-weight material, in partnership with North Jeolla Province.

Through the new R&D complex, called the Creative Economy Innovation Center, the Korean chemical and textile giant said it aims to share its technological and management know-how with smaller firms and help them find overseas sales channels.

As part of the plan, the group will invest 1.2 trillion won ($1.07 billion) into its existing carbon fiber production site in Jeonju, the provincial capital, to elevate the annual capacity to 14,000 tons by 2020. 

Hyosung said another 40 billion won would be poured to nurture small and mediumsized companies in the carbon fiber field, including a 20 billion won fund for start-ups and an R&D complex. The provincial government also decided

to inject an additional 5 billion won for the same purpose.

“The new plan will help the Park Geun-hye government’s ‘creative economy’ initiative as well,” the group said in a statement.

On Monday, Hyosung and North Jeolla Province signed a memorandum of understanding to work together on the operation of the R&D cluster.

By Lee Ji-yoon (jylee@heraldcorp.com)