South Korea-based industry giant Hyosung Corporation, has decided to expand its spandex investments in Turkey to meet the growing demands of the European market. The company will make an additional investment of 52.9 million USD (60 million won) in its facility located in Tekirdağ Çerkezköy. The investment for capacity increase in the facility, where more than 350 people work, is expected to be completed by July 2021. With an increase of 15 thousand tons, the total capacity of the facility will increase to 40 thousand tons.
Operating in many industry segments such as chemistry, industrial machinery, IT, trade and construction in the global market, Hyosung Corporation Chairman of the Board of Directors Cho Hyun-joon made a statement regarding the new investments in Turkey. He stated that Hyosung will make this investment in order to widen the gap with rivals as the as the world′s No.1 manufacturer of spandex. Hyun-joon said; “The decision is based on the Group’s need for 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”.
Turkey will respond to the increasing demand of the European market with investment
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 750 trillion KRW in the recovering market with the expansion of its production capacity. Cho Hyun-joon commented as; “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 such as prompt delivery based on geographic advantage; ability to meet customized needs of customers; and sheer technological prowess to fit premium market.
Global demand for spandex is growing by 6-7% a year
According to Business Wire, 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. The company supplies the global market in the field of spandex under the brand name Creora.