[Report] ‘C&T VINA’ as the Benchmark for Hanse Industrial’s Vertical Integration in Guatemala

Guatemala Vertical Integration Production Base to Open in Q3 Next Year
Previewing Hanse-Style Vertical Integration Through the Vietnam Production Complex
Guatemala to Focus on U.S. Buyers, Vietnam on Europe and Japan
2027 Revenue Expected to Reach 345 Billion KRW, Driving Group Sales to 5 Trillion KRW

Located in Dong Nai Province, about a three-hour drive from Ho Chi Minh City, Vietnam’s largest economic hub, Hanse Industrial C&T VINA immediately draws attention with its lobby, where transparent glass bottles filled with vibrant dyes are displayed. The colorful bottles, arranged in a gradation, symbolically represent the dyeing factory.

C&T VINA is Hanse Industrial’s Vietnamese subsidiary, occupying a total area of 325,000 square meters (98,300 pyeong) and operating three dyeing plants. Just five minutes away by car, there is a knitting complex spanning 13,000 square meters (4,000 pyeong), and about an hour away near Tien Giang Province, the “Hanse TG” corporation runs a sewing factory.

Color & Touch Corporation located within the C&T VINA industrial complex. Color & Touch specializes in fabric manufacturing and dyeing technology. Dyeing raw materials displayed inside the corporation. Photo by Minji Lee.

A Compact Version of Hanse Group’s Vertical Integration: ‘Vietnam’

Hanse Industrial, the largest fashion original equipment manufacturer (OEM) in the world, has established its global growth engine through vertical integration in Vietnam. Vertical integration refers to a production system in which all processes are conducted in one place. Apparel manufacturing is divided into several stages: spinning yarn from fibers, creating fabric (knitting/weaving) from yarn, dyeing the fabric, and finally sewing the garments. Hanse Industrial produces fabric at its knitting complex in Vietnam, dyes it at C&T VINA Plants 1, 2, and 3, and then transports the fabric to nearby sewing factories to manufacture garments according to buyers’ orders.

During a visit to the knitting complex on October 30, more than 170 knitting machines were continuously producing white fabric inside semi-transparent greenhouses. When all machines are in operation, the daily production capacity is 300 kg-enough to make 900 T-shirts (three shirts per kilogram). This facility has been operated by Bukwang Textile for ten years since 2015.

After acquiring C&T VINA, Hanse Industrial established a knitting complex nearby the following year and brought in three partner companies, one of which is Bukwang Textile. Kim Minwook, CEO of Bukwang Textile, explained, “We use both cotton yarn (made from natural fibers) and chemical fiber yarns such as polyester and nylon to produce different types of greige fabric. Most of our output is destined for buyers in the Americas.”

The knitting machines consist of 'single' machines used for T-shirts, 'double' machines that produce thick cotton fabrics such as collars and ribbing, and 'fleece' machines used for hoodies and sweatshirts. The above machine is a single knitting machine. Inside the production building, there were 170 knitting machines and inspection machines capable of producing 51,000 kg of fabric per day.

C&T VINA Plant 2 is in operation. Employees are removing fabric from the dyeing machine. The dyeing machine can accommodate fabric in units of 1000 kg. Chemical fibers such as polyester are characterized by rapid dyeing at relatively high temperatures and pressures of 130 degrees Celsius.

Printing machines placed in Factory 2. The daily production volume is about 10,000 yards (9.1 km) in length. Up to 12 different colors can be used to create a single pattern.

Following the finished fabric, we headed to the C&T VINA dyeing plant. Inside the dyeing factory, the air was thick and hot, almost suffocating. The 108 dyeing machines emitted steam reminiscent of a kiln. Because it is crucial to achieve uniform coloring in a short time, high-temperature and high-pressure environments are unavoidable in the dyeing process.

This dyeing plant is equipped with automated facilities. Plant 3, which opened last year, houses 34 dyeing machines that monitor water turbidity in real time to maintain consistent quality. The margin of error has been reduced by 50% compared to previous operations. By minimizing unnecessary washing steps, the plant has also enhanced its eco-friendly features. About 80% of the water required for garment production is used in the dyeing process. Thanks to automation, water usage has decreased by 20% and chemical usage by 10% compared to previous levels.

There are 34 automated dyeing machines installed in Factory 3, capable of dyeing both cotton fabrics and chemical fiber fabrics. The temperature rise speed has also been improved compared to existing dyeing machines, significantly reducing the dyeing time. It has been found to be about 1.8 times faster than the previous dyeing machines.

The Foundation of Success in Vietnam... ‘Guatemala Vertical Integration’ Production Base

Hanse Industrial plans to launch a vertically integrated production base in Guatemala in the third quarter of next year. The Guatemala vertical integration project involves constructing the “Ecospin” plant, which will produce yarn on a 160,000-square-meter (48,000 pyeong) site in Michatoya, near the sewing factory established in the Pinula area, as well as the “C&T Guatemala” plant, which will handle fabric manufacturing and dyeing.

In Guatemala, the addition of the spinning stage will complete a four-stage vertical integration system. The spinning, knitting, and dyeing plants will be located in one complex, and the same automation and eco-friendly systems will be implemented. Kim Youngjo, Director of C&T overseeing Central American operations, stated, “Guatemala will serve as a dedicated production hub for the Americas and athleisure brands, while Vietnam will function as a base for Europe and Japan. We plan to incorporate automation equipment and AI systems that buyers are paying attention to, further enhancing our eco-friendly capabilities.”

C&T Guatemala: Two-Month Reduction in Lead Time from Order to Delivery... 2027 Revenue Expected to Reach 69 Billion KRW

Once the Guatemala production base is operational, Hanse Industrial expects to gain a competitive edge in production and quality among U.S. buyers. This is because the time from order to delivery (lead time) will be dramatically shortened. The shorter the lead time, the faster buyers can respond to sales data and place reorders. While lead time in Vietnam is six months, in Guatemala it will be reduced to four months-a two-month reduction. Looking at Hanse Industrial’s clients (Gap, Carhartt, Old Navy, Walmart, Target, etc.), 90% are concentrated in the Americas. Director Kim explained, “Even though labor costs in Central and South America are higher than in Asia, buyers prefer shorter lead times. We are focusing on attracting major American buyers by establishing a dedicated sales team at the Guatemala subsidiary.”

There is also relative freedom from tariff issues. While Vietnam faces mutual tariffs in the 20% range, Guatemala enjoys lower tariffs in the 10% range within Central America. The facility can also serve as a major production base for high-value athleisure products. Last year, Hanse Industrial acquired U.S. textile manufacturer Texollini with plans to diversify into athleisure products. In Guatemala, Hanse Industrial plans to produce 70% chemical fiber fabrics and 30% cotton fabrics made from natural fibers.

The new Guatemala production base is expected to generate 3.45 billion KRW in new sales next year and 6.9 billion KRW in 2027. The combined expected sales from the Vietnam and Guatemala bases next year are projected to reach 276 billion KRW, a 30% increase from this year’s estimated 213.9 billion KRW.