Hyosung Has Big Plans for Vietnam

SEOUL, KOREA- Hyosung, the world's largest spandex producer, will expand the production capacity of its Vietnamese local unit.This is part of the company's strategy to nurture the Vietnamese plant as a production base for the whole Southeast Asia in response to the rising demand for spandex and tire cord products. According to company sources on August 29, Hyosung will complete the capacity expansion project for its Nhon Trach spandex plant in Dong Nai Province in southeastern Vietnam by November this year. Once the new production line is up and running, the plant will be able to produce 40,000 tons of spandex a year from current 30,000 tons.

Spandex is a synthetic fiber known for its exceptional elasticity, used mainly for swimwear, pantyhose, and underwear. The brand name for spandex produced by Hyosung is "Creora." Hyosung accounts for about 30 percent of the world's spandex market. Cho Hyun-jun, Hyosung's textile product group head, said, "We are steadily increasing the capacity in Vietnam as it offers high-quality workforce with an advantageous geographic location. Once the new production line comes on stream by the end of this year, the share of Vietnamese output in the total worldwide production would rise up to 25 percent."

In addition to spandex, Hyosung's tire cord production in Vietnam is on the rise as well. Currently as much as a half of worldwide output by Hyosung is accounted for by its Vietnamese unit. Last year, Hyosung took a commanding share of 47 percent in the world's polyester tire cord market. The company expects that its Vietnamese unit will be able to make more than 1 trillion won in sales this year following 750 billion won last year.

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