Hyosung Chairman Cho Hyun-joon Embarks on Global Expansion Drive

Investing 40 Billion KRW in Brazil Following Turkey to Expand Annual Production by 10,000 Tons

Brazil Spandex Factory Expands Production Capacity to 22,000 Tons per Year

Chairman Cho: "In times of change, we will continue investing in the future to turn crises into opportunities"

[Asia Economy Reporter Park So-yeon] Hyosung Chairman Cho Hyun-joon is expanding the spandex factory in Brazil following Turkey, aiming to widen the world’s number one spandex production gap.

Hyosung TNC announced on the 2nd that it will invest 40 billion KRW (approximately 36 million USD) by December next year to increase the production scale of its spandex factory in Santa Catarina, southern Brazil, by 10,000 tons. Upon completion, the production capacity of the Santa Catarina factory will double to a total of 22,000 tons.

This expansion is in response to the surge in demand for spandex, an elastic fiber, driven by increased sales of comfortable clothing such as homewear and athleisure in the Latin American apparel market due to COVID-19.

The Brazilian market imposes import tariffs on spandex as high as 18%, more than twice the rate applied in other regions, making local production essential to maintain competitive pricing. Additionally, Brazil shares borders with 10 out of 12 other South American countries and has a coastline, which is advantageous for exports to neighboring regions.

With this expansion, Hyosung TNC expects not only to meet the growing demand in the Americas but also to widen the competitive gap with rivals, enabling proactive measures for the post-COVID-19 era.

Since establishing its production base in Brazil in 2011, Hyosung TNC has strengthened its market dominance in the Americas and currently holds the number one position with a 65% market share in Brazil.

Chairman Cho emphasized, "Unprecedented crises such as COVID-19 have increased uncertainty and accelerated the pace of change. In times of change, we must continue investing in the future to turn crises into opportunities."

Meanwhile, last month Hyosung TNC decided to invest 60 billion KRW to expand its spandex factory in Turkey to target the European market. It has also established production bases in India for emerging Asian markets and Vietnam for the entire Asian market, building a continent-based production system to maintain its unrivaled global number one position.

This content was produced with the assistance of AI translation services.