SEOUL, April 21 (Yonhap) — Kumho Mitsui Chemicals Inc. said Wednesday it will invest about 400 billion won (US$358.1 million) to expand its chemical manufacturing factory in South Korea’s southwestern region.

The joint venture between Korean synthetic rubber maker Kumho Petrochemical and Mitsui Chemicals of Japan said its shareholders approved the investment plan to scale up a methylene diphenyl diisocyanate (MDI) factory in Yeosu, 455 kilometers southwest of Seoul.

MDI is a core material of polyurethane, which is used in various products, including refrigerators, building materials, car interior and exterior materials, and LNG vessels.

When the expansion is completed in 2024, Kumho Mitsui Chemicals’ annual MDI production capacity will rise from the current 400,000 tons to 610,000 tons and it is expected to raise over 1.5 trillion won in sales, it said.