Hyosung to build 'fiber value chain' in Vietnam

Hyosung's spandex plant in Dong Nai Province / Courtesy of Hyosung

By Kim Jae-heun

Industrial giant Hyosung is planning to build a “fiber value chain” in Vietnam by establishing a comprehensive production system for spandex, tire cords and raw materials, as well as finished products such as airbags, the business group said Friday.

It operates the largest production plants for spandex and tire cord in Vietnam, which produce about 32 percent and 50 percent of the nation's entire output, respectively.

Hyosung is also pushing to expand production facilities for nylon fiber as well as increase sales of differentiated products that can lead global trends such as eco-friendly fibers.

“We are also planning to strengthen our production capacity in the industrial material sector by continuously expanding our tire cord and steel cord businesses. We are reviewing investments in high-tech materials industries such as carbon fiber, aramid and biodiesels,” a Hyosung official said.

Vietnam serves as an important hub for Hyosung as it targets the global market.

Hyosung Group Chairman Cho Hyun-joon has been pushing for business expansion based on preemptive investment in the country since the mid-2000s, believing in Vietnam's potential to grow into a global manufacturing production base.

It is currently the third-largest Korean investor in Vietnam with its business accounting for nearly 1 percent of Vietnam's total exports. The textile company expects its annual sales to surpass 4 trillion won ($30.6 billion) this year.

Hyosung's other core businesses include chemicals, heavy industry and information and communication.

In the heavy industry sector, the company will relocate the production of standard products, currently manufactured at its mother plant in Changwon, South Gyeongsang Province, to Vietnam, to increase the production capacity in the Southeast Asian country.

In the chemical sector, it established a vertically integrated production system for the polypropylene business of Vina Chemical in Vietnam.

In the information and communication sector, the company established Vietnam's first ATM factory in Bac Ninh Province, to foster it as an export advancement base.