Hyun-Jun Cho, Chairman of Hyosung, "We will expand the super-gap with competitors in the global No.1 spandex status"

Hyosung TNC Invests 60 Billion KRW in Turkey to Expand Spandex Annual Production by 15,000 Tons
Turkey Spandex Plant Increases Production Capacity to 40,000 Tons Annually

[Asia Economy Reporter Hwang Yoon-joo] Hyosung Chairman Cho Hyun-joon has launched a preemptive investment to expand the gap as the global No. 1 spandex manufacturer by promoting the expansion of the spandex factory in Turkey to target the European premium market.

Hyosung TNC announced on the 2nd that it plans to invest 60 billion KRW in the Cerkezkoy area near Istanbul, Turkey, to expand the spandex production plant with an annual capacity of 15,000 tons by July next year. Upon completion of the expansion, the production capacity of the Turkey spandex factory will increase to about 40,000 tons.

This expansion is based on Chairman Cho Hyun-joon's judgment that preemptive investment in spandex is necessary as the global apparel market, centered on the European market, is showing a full-scale recovery recently. In particular, the European market has experienced inventory shortages due to reduced production and postponed new product launches as shutdowns caused by the COVID-19 pandemic continued. Hyosung TNC expects that this expansion will meet the recovering global textile demand worth 750 trillion KRW.

Chairman Cho emphasized, "We must strengthen our dominance in the European premium market centered on Turkey, which serves as the production base for European customers, and solidify our unshakable position as the world's No. 1 by expanding the super-gap with competitors."

Since establishing a production base in Turkey in 2008, Hyosung TNC has increased its market dominance in the European region through two additional expansions. In particular, it has provided stable product supply to European customers by demonstrating advantages such as ▲fast delivery leveraging geographical benefits ▲meeting differentiated customized customer needs ▲technological capabilities required in the premium market.

According to the global research firm Business Wire, global spandex demand is growing at an annual rate of 6-7%. Considering that the growth rate of general apparel fibers is 2-3%, spandex is growing at more than twice the rate. Since the COVID-19 pandemic, homewear and athleisure have gained attention in the global apparel market. As time spent at home, such as telecommuting, has increased, consumers' interest in easywear, which can be comfortably worn indoors and is suitable for light outings, has risen. Consequently, the demand for spandex, which adds elasticity to clothing and helps provide comfortable wear, is also increasing. This trend is expected to continue in the post-COVID-19 era.

Meanwhile, Hyosung TNC has established a continental production system with production bases in China (started in 1999), Turkey for the European market, the United States and Brazil for the South American market, India for emerging Asian markets, and Vietnam for the entire Asian market, maintaining its unrivaled global No. 1 position.