SEOUL, South Korea, Dec. 10, 2020 /PRNewswire/ -- Hyosung Chairman Cho Hyun-joon has solidified its world's No.1 position in the spandex market by increasing the production capacity of the spandex plant in Brazil.
Hyosung TNC (KRX:298020) announced on the 2nd that it will expand the production scale of its spandex plant located in Santa Catarina in the southern part of Brazil by 10,000 tons by December next year through an investment of KRW 40 billion (approx. USD 36 million). Once the expansion is completed, the production capacity of the plant in Santa Catarina will increase to 22,000 tons totally, which is around double the current production capacity.
This expansion was decided in line with a rapid rise in the demand for spandex, a synthetic fiber known for its exceptional stretch, as the sale of comfortable clothing, such as home wear and athleisure wear, increases in the Central and South American clothing market due to the spread of COVID-19.
In the Brazilian market, the import tariff rate for spandex is as high as 18%, which is more than double the rate applied in other regions. Therefore, a local production base is essential for maintaining price competitiveness. In addition, Brazil borders ten of 12 South American countries and abuts on the sea, which are advantageous geographical features for export to nearby regions.
With the plant expansion, Hyosung TNC expects to not only meet the increasing demand in the American region but also preemptively respond to the post-COVID-19 era by solidifying its leadership from the competitors.
The demand for spandex in global apparel market continues to grow due to consumer popularity of comfort and athleisure wear. According global research and consulting firm RESEARCH AND MARKETS 2020 report, spandex demand has been growing by 6 to 7% which is more than double the growth rate of general apparel fibers, which grow 2 to 3% annually.
Having established a production base in Brazil back in 2011, Hyosung TNC has strengthened its market share in the American continent. Currently, the company's market share in Brazil is the largest at 65%.
"The unprecedented risk caused by COVID-19 has aggravated uncertainty and accelerated the speed of change," said Hyosung Chairman Cho Hyun-joon. He emphasized, "In times of change, we must turn crisis into opportunity by continuously investing for our future."
Hyosung TNC established a production base in India for the emerging markets in Asia in addition to a production base in Vietnam to target the entire Asian market. Through the efforts to establish production bases by continent, Hyosung TNC is keeping its unchallenged position as a global leader.
Hyosung is a comprehensive fibre manufacturer that produces world-class products, providing innovation and solutions to the textile industry. Hyosung's creora® elastane is the world's largest spandex brand, supplying the broadest range of stretch fibre offerings supported by exceptional technology and quality. Mipan® nylon and specialty polyester provide functional and sustainable fibre solutions that are essential to today's dynamic textile market. Visit our website at www.hyosungtnc.com and http://www.creora.com for all the latest trend, event and product updates.
SOURCE Hyosung TNC