Hyosung, the World's Number 1 Spandex to Accelerate Global Attack with Vietnam Footproof
Hyosung Group Chairman Cho Hyun-joon, who met Vietnamese prime minister Nguyen Phuan, said on Friday, " We will expand our business in the chemical and heavy industry sectors as well as the world's No. 1 spandex and falls control codes. " In addition to the materials business such as textiles and industrial materials, the company plans to expand its investment into all Hyosung business areas such as chemistry, heavy industry, construction and information communications, and make Vietnam a strategic base for its global market. The global management of Cho Hyun-joon, who became chairman in January last year, is accelerating. Vietnam, which grows at more than 6 percent annually, is a emerging domestic market with a population of 90 million and a manufacturing plant in the world. Korea is the third largest exporter after China and the United States.
On top of the " second takeoff, " the Vietnamese company exports 80 percent of its total sales. Spandex, a textile and industrial materials field, and the fallen relay code are the most popular products in the world. Five out of 10 people around the world use Hyosung's tire reinforcing Jane-Fabric Code, and three out of 10 people wear Hyosung's Spandex clothes.
On Hyosung's foundation is Vietnam, which became the foundation for the second leap forward. Hyosung set up a Vietnamese subsidiary and manufacturing facility at the Yeonpal industrial complex near Ho Chi Minh City in 2007. The company is preparing for the situation in which the cost competitiveness of Chinese factories will be weakened due to rising labor costs and tighter regulations. At that time, it was a barren land filled with rubber fields. It is now the largest South Korean plant invested in the country. Some even call it " Samsung in the north of Vietnam " and " Hyosung in the south. " At the 1.1-million-square-meter site, which is equivalent to 90 soccer fields, it produces major products such as spandex, fallen train codes, and motor vehicles.
Sales, which only totaled 6 billion won in 2008, have surpassed 1 trillion won since 2014. The operating profit ratio is over 20 percent, and it is the 10th consecutive year that the company has had a surplus. It is responsible for 10 percent of Hyosung's total sales and 1 percent of Vietnamese exports. The number of people employed in Korea also exceeds 7,000. " While Spandex controlled about 20 percent of the world's market when it first arrived in Vietnam, its production capacity has grown eight-fold over the past decade based on its cost competitiveness, including cheap labor, " Hyosung said.
Hyosung Vietnamese plant in Ho Chi Minh City, Vietnam. It produces Hyoseon`s top products such as ' Drop Relay Code ' and ' Spandex ', and generates more than 1 trillion won in sales each year.
Hyosung Hyper`s investment in Vietnam has reached 1.5 billion dollars so far. The company plans to add a polypropylene plant in Baribangtau Province in southern Vietnam, and to add a drop code manufacturing plant in the middle of the town.
The Yongyeon Prophilene plant, which completed the expansion at 300,000 tons last year, is planned to convert into a production plant for pipes, a highly value-added product, and to double the production capacity of general products. The company also plans to manufacture semi-finished products from Vietnam and import them into its Changwon factory in Korea to manufacture and export the finished products. When the two projects are completed, Hyosung will build a composite manufacturing base in Vietnam to produce products from all business segments, said Hyosung.
Hyosung will also expand its infrastructure business in Vietnam, including ESS (Energy Storage System), ATM (ATM), and electronic payment. Due to economic development, Vietnam is in urgent need of building its infrastructure, including electricity, roads and ports. In a meeting with Goh, Cho also expressed confidence in Hyosung, saying, With its long technical skills and skills in construction, it is possible to succeed in Vietnamese infrastructure projects.
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