By Lee Hyo-sik
Hyosung’s operating profit exceeded 1 trillion won ($870 million) in 2016 for the first time in its history, thanks to its rapidly-growing spandex business, Korea’s largest synthetic fiber manufacturer said Thursday.
The firm’s operating profit reached 1.02 trillion won last year, up from 950.2 billion won in 2015. But its sales inched down to 11.9 trillion won from 12.45 trillion over the same period.
Hyosung said all of its business divisions, including textiles, industrial systems, chemicals, trading and construction, performed better than in 2015.
In particular, its spandex and tire code businesses led the company to the record profit, company officials, adding its financial soundness improved significantly on the falling debt-to-equity ratio.
Spandex is a synthetic fiber widely used in sportswear and other functional clothes. Hyosung is the largest spandex maker, accounting for about 42 percent of the global market.
The company also carves out nearly 45 percent of the global market for tire code, which is molded into the sidewall of the tire.
“By making the best use of our extensive global production network, we successfully expanded our market shares,” a company official said. “We have also focused on developing and marketing high-tech, high-quality products. Under Chairman Cho Hyun-joon’s leadership, we have been able to raise our status on the global stage.”
On Dec. 29, Cho was promoted to the top post.
In particular, the firm’s heavy industry division has been able to bolster its profitability by making inroads into the Middle East, India and North Africa. It has won a number of lucrative deals abroad.
“We have been working hard to improve our financial health. We have spent a significant portion of our profit to pay off debts over the years, pushing down the debt to equity ratio to 267.2 percent,” the official said.
“We will continue to listen to our clients and introduce what they demand, as well as entering new foreign markets and nurturing new growth engines,” he said.