Hyosung Group Chairman Cho Hyun-joon has pushed for the expansion of its spandex plant in Turkey to tap into the European premium market, making preemptive investments for the world's solid No. 1 player.
Hyosung T&C announced on Nov. 2 that it will invest 60 billion won ($53 million) in the Cerkezkoy area near Istanbul, Turkey, and expand its spandex production plant with an annual capacity of 15,000 tons by July next year.
Once the expansion is completed, the production capacity of the spandex plant in Turkey will be expanded to about 40,000 tons.
The expansion is based on Chairman Cho's judgment that the company needs to make a preemptive investment as the global clothing market is recovering in earnest, especially in the European market.
In particular, the European market has been suffering from inventory shortages due to a continued shutdown caused by the COVID-19 crisis. Hyosung T&C expects the expansion to meet the recovering global textile demand of 750 trillion won.
"We need to strengthen our dominance in the European premium market, focusing on Turkey, which is the production base for European customers, to solidify our position as the undisputed No. 1 in the world by widening the gap with our competitors," Chairman Cho stressed.
Hyosung T&C has been increasing its market presence in Europe after two additional expansions since it built a production base in Turkey in 2008. In particular, it has been supplying stable products to customers in Europe, with its advantages in fast delivery, meeting differentiated customized customer needs, and technical skills required by premium markets.
