Hyosung Chairman Cho Hyun-joon to widen gap with rivals in spandex production
Mon Nov 02 10:07:36 KST 2020
Hyosung Chairman Cho Hyun-joon has decided to make a proactive investment in spandex production to widen gap with rivals as the world′s No.1 manufacturer, expanding the Group′s factory in Turkey to make a foray into the premier market in Europe.
□ Hyosung TNC to invest KRW 60 billion in Turkey to increase production capacity 15,000 tons
On November 2, Hyosung TNC said that it would build a factory with a capacity of 15,000 tons a year in Cerkezkoy, close to Istanbul, Turkey, by investing 60 billion won by July next year. Upon completion of the factory, the company′s spandex production capacity in Turkey will increase to about 40,000 tons a year.
The decision is based on Mr. Cho Hyun-joon′s judgment that the Group needs a more proactive investment to gain the upper hand in the global clothes market, particularly the European market, which has recently shown a sign of recovery.
The businesses in Europe reduced their production and put off introduction of new products to the market amid the continued shutdown due to COVID-19; thus, they are in a state of inventory shortage. Hyosung TNC expects to meet the textile demand worth KRW 750 trillion in the recovering market with the expansion of its production capacity.
Commenting on the matter, Mr. Cho Hyun-joon said, ″We need to solidify our position as the world′s No.1 manufacturer, widening the gap with rivals, strengthening our dominance in the European premium market with the expansion of our production facilities in Turkey, which serves as a production base of Europe.″
Hyosung TNC has strengthened its market dominance in Europe through the expansion of the factory in Turkey, which was built in 2008, twice. The company has supplied goods to European customers, displaying advantages over rivals in the following factors: △ prompt delivery based on geographic advantage; △ ability to meet customized needs of customers; and △ sheer technological prowess to fit premium market.
□ Global spandex demand growing 6 - 7% a year
According to Business Wire, the global leader in press release distribution, the global spandex demand grows 6-7% a year versus 2-3% for ordinary textile.
In the COVID-19 era, home wear and athleisure wear are in the spotlight in the global apparel market. They are those that meet the needs of consumers, who spend more time at home for telecommuting or the like. The demand for spandex clothes is also increasing, as they are easy to wear. It is expected that trends like this will continue even in the post-COVID-19 era.
Meanwhile, Hyosung TNC has maintained its position solidly as the world′s No.1 spandex manufacturer. It operates a global network of factories as follows: those in China opened in 1999; those in Turkey for the European market; those in Brazil for the U.S. and Latin American markets; those in India for newly emerging Asian countries; and those in Vietnam for the entire Asian continent.