South Korean industrial conglomerate Hyosung said Thursday it will partner with Saudi Aramco in the area of carbon fibers.

Under a memorandum of understanding, signed by Hyosung Group Chairman Cho Hyun-joon and Saudi Aramco CEO Amin H. Nasser on Tuesday, the two sides agreed to consider building a carbon fiber plant in Saudi Arabia or Korea. They also agreed to cooperate on technology development of carbon fiber production. 

Carbon fibers are fibers that weigh one-fourth less than steel but are 10 times stronger. They are vital materials necessary for safe storage, transportation and the usage of hydrogen energy.

Hyosung was the first Korean company to develop carbon fibers in 2011. Two years later, it began to operate a carbon fiber plant with annual production capacity of 2,000 tons in Jeonju, North Jeolla Province. It has been building another 2,000-ton carbon fiber plant in Jeonju since February.

The two companies are also slated to strengthen ties in the area of chemicals -- including Polyketone, a new material Hyosung developed in 2013 for the first time in the world -- as well as the power sector, including energy storage systems.

On Wednesday, Hyosung Chairman Cho attended a luncheon hosted by Cheong Wa Dae for Saudi Arabia’s Crown Prince Mohammed bin Salman, to discuss details with officials from Saudi Arabia.

By Shin Ji-hye (shinjh@heraldcorp.com)