Hyosung Advanced Materials will accelerate the expansion of its presence in the global market by establishing a new tire cord manufacturing subsidiary in Vietnam. After the Hyosung Group’s conversion to a holding company structure, group chairman Cho Hyun-jun is stepping up his global business moves.
Hyosung Advanced Materials announced on Nov. 5 that the company will build a polyester and nylon tire cord production facility in Quang Nam Province in central Vietnam by investing a total of US$152 million. The company will invest US$30 million this year.
Hyosung Advanced Materials is currently the world’s largest polyester tire cord producer with a market share of about 45%.
When the new production facility is completed, Hyosung will have an integrated production base in Vietnam. Hyosung has invested about US$1.5 billion in a textile production plant in Dong Nai Province since 2007. The corporation in Dong Nai posted about 1.77 trillion won in annual sales last year. In February, chairman Cho met Vietnamese Prime Minister Nguyen Xuon Phuc and discussed ways to expand cooperation with Vietnam.
"Hyosung is investing a total of US$1.3 billion to build a polypropylene (PP) plant, a dehydration plant and a liquefied petroleum gas (LGP) storage tank for the PP plant in Ba Ria–Vung Tau Province in southern Vietnam,” a Hyosung official said. "We are going to strengthen our position in the global textile market based on such investments."