Hyosung TNC to Inject $1 Billion into Vietnam's Bio Fiber Sector
Hyosung TNC to Inject $1 Billion into Vietnam's Bio Fiber Sector

Hyosung TNC to Inject $1 Billion into Vietnam's Bio Fiber Sector

  • 03-Apr-2024 6:38 PM
  • Journalist: Harold Finch

Hyosung TNC Corp., the leading producer of spandex globally, has unveiled plans for a substantial investment of $1 billion in new bio-textile materials plants in Vietnam, marking a significant stride in its commitment to eco-friendly industries and its quest for future growth. On Tuesday, it was revealed that the company has received authorization from the provincial government of Ba Ria-Vung Tau, located on the southeastern coast of Vietnam, to build a new bio-butanediol (BDO) factory capable of producing 50,000 tons annually.

This strategic move by the South Korean conglomerate aims to bolster its manufacturing capabilities, with a target to produce and market 50,000 tons of bio-BDO by the first half of 2026. Furthermore, Hyosung TNC plans to expand its bio-BDO capacity fourfold by establishing additional facilities, reaching an impressive annual production capacity of 200,000 tons.

BDO serves as a crucial chemical used in the production of polytetramethylene glycol (PTMG), a key component of spandex fiber. Beyond its traditional application in spandex, BDO finds utility in various other sectors, including engineering plastics, biodegradable packaging, footwear soles, and industrial compounds.

Notably, bio-BDO is derived from the fermentation of sugars extracted from sugarcane, offering a sustainable alternative to fossil-based raw materials such as coal, with a 100% substitution rate. Hyun-Joon Cho, the chairman of Hyosung, underscored the importance of the company's entry into the bio sector, asserting, "The bio industry, which converts traditional fossil-based materials into environmentally friendly alternatives, will serve as a fundamental pillar of Hyosung for the next century." He further outlined the company's vision to bolster its premium brand status through strengthened global penetration in sustainable markets, leveraging a consistent production system of Bio-BDO and Bio Spandex.

Cho has been advocating for Hyosung TNC, the group's textile unit, to adapt to evolving trends in the global textile industry since the late 2000s. This shift comes in response to stringent environmental regulations in Europe and the Americas, urging the introduction of sustainable products. With a goal to achieve 20% of its total spandex sales from sustainable products by 2030, Hyosung TNC aims to significantly elevate its current contribution of 4%. The sustainable textile and fashion market, valued at approximately $23 billion, demonstrates robust growth potential, boasting an average annual growth rate exceeding 12.5%.

Hyosung's strategic investment in bio-textile materials plants in Vietnam not only underscores its commitment to sustainability but also positions the company as a trailblazer in the global textile industry. By embracing eco-friendly practices and driving innovation in bio-based materials, Hyosung aims to reshape the future of textiles while championing environmental stewardship.

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