A new factory will boost the company’s spandex production capacity in Turkey to about 40,000 tons a year to take care of the growing global demand for this product
Hyosung TNC announced building a factory with a capacity of 15,000 tons a year in Cerkezkoy, close to Istanbul, Turkey, by investing Won 60 billion by July next year. Upon completion of the factory, the company’s spandex production capacity in Turkey will increase to about 40,000 tons a year. The decision is based on Chairman Cho Hyun-Joon’s judgment that the group needs 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.
Businesses in Europe reduced their production and put off introduction of new products in the market amid the continued shutdown due to the pandemic; thus, they are in a state of inventory shortage. Hyosung TNC expects to meet the textile demand worth KRW 750 trillion in the recovering market with the expansion of its production capacity. Commenting on this move, Cho Hyun-Joon said, “We need to solidify our position as the world’s leading manufacturer and widen the gap with rivals while strengthening our dominance in the European premium market.”
“This will happen with the expansion of our production facilities in Turkey, which serves as a production base for Europe,” he added. Hyosung TNC has strengthened its market dominance in Europe through the expansion of the factory in Turkey, which was built in 2008. The company has supplied goods to European customers, displaying advantages over rivals in terms of prompt delivery due to its geographic advantage, ability to meet the specific needs of customers and sheer technological prowess to fit the premium market.
Growing Demand for Spandex
The global spandex demand grows 6-7% a year versus 2-3% for ordinary textiles. The global spandex market size was estimated at USD 7.39 billion in 2019. It is projected to expand further at a compound annual growth rate (CAGR) of 2.2% from 2020 to 2027. Rapidly increasing population coupled with rising consumer disposable income is projected to propel the demand. The spandex fibre offers excellent strength, weight and versatility as compared to other fibres, which drives its demand in the manufacturing of clothing and medical applications. In the ongoing pandemic era, home wear and athleisure wear are in the spotlight in the global apparel market for those engaged in telecommuting and 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-pandemic era. Meanwhile, Hyosung TNC has maintained its position solidly as the world’s leading spandex manufacturer. It operates a global network of factories, including a plant in China for the local market and plants in Turkey for the European market and in Brazil for the US and Latin American markets. It also has a plant in India for the newly emerging Asian countries and a plant in Vietnam for the entire Asian continent.