Hyosung Chairman Cho Hyun-joon Sets out on Global Spandex Plant Extension
Will extend the annual production capacity of the plant in Brazil by 10,000 tons through the investment of KRW 40 billion following Turkey
The annual production capacity of the spandex plant in Brazil to be increased to 22,000 tons
Chairman Cho embarks on expanding the company’s leadership in spandex market
Chairman Cho, “In times of change, we must turn crisis into opportunity by investing in the future.”
Hyosung Chairman Cho Hyun-joon
SEOUL--(Korea Newswire) December 04, 2020 -- Hyosung Chairman Cho Hyun-joon has solidified its world's No. 1 position in the spandex market by extending the production capacity of the spandex plant in Brazil following the one in Turkey.
Hyosung TNC (KRX:298020) announced on the 2nd that it will extend the production scale of its spandex plant located in Santa Catarina in the southern part of Brazil by 10,000 tons by December next year through an investment of KRW 40 billion (approx. USD 36 million). Once the extension is completed, the production capacity of the plant in Santa Catarina will increase to 22,000 tons in total, which is around double the current production capacity.
This extension was decided in line with a rapid rise in the demand for spandex, a synthetic fiber known for its exceptional stretch, as the sale of comfortable clothing, such as home wear and athleisure wear, increases in the Central and South American clothing market due to the spread of COVID-19.
In the Brazilian market, the import tariff rate for spandex is as high as 18%, which is more than double the rate applied in other regions. Therefore, a local production base is essential for maintaining price competitiveness. In addition, Brazil borders ten of 12 South American countries and abuts on the sea, which are advantageous geographical features for export to nearby regions.
With the plant extension, Hyosung TNC expects to not only meet the increasing demand in the American region but also preemptively respond to the post-COVID-19 era by expanding leadership from its competitors.
Having established a production base in Brazil back in 2011, Hyosung TNC has strengthened its market share in the American continent. Currently, the company’s market share in Brazil is the largest at 65%.
“The unprecedented risk caused by COVID-19 has aggravated uncertainty and accelerated the speed of change,” said Hyosung Chairman Cho Hyun-joon. He emphasized, “In times of change, we must turn crisis into opportunity by continuously investing in our future.”
Last month, Hyosung TNC decided to expand its spandex plant in Turkey through an investment of KRW 60 billion in order to target the European market. It also established a production base in India for the emerging markets in Asia in addition to a production base in Vietnam to target the entire Asian market. Through the efforts to establish production bases by continent, Hyosung TNC is keeping its unchallenged position as a global leader.
This is a news release distributed by Korea Newswire on behalf of this company . Learn more