At the 2024 World Economic Forum (Davos Forum), HYOSUNG emphasized the importance of cooperation among East Asian countries as a global leader in advanced materials. Following this, several governments and companies across Asia, including India, have requested investments from HYOSUNG. From advanced materials like spandex to energy-efficient tire cords, HYOSUNG is driving innovation and transforming the market in East Asia. Let's explore how HYOSUNG has shifted the paradigm and made positive impacts on both local communities and the environment.

Cambodia | A Strategic Production Base for Expanding Asian Operations

▲ Discussing collaboration expansion with Cambodian Prime Minister Hun Manet in May 2024.

Cambodia, with its favorable business environment and growth potential, has become a key production base for HYOSUNG’s business expansion following China and Vietnam. In 2024, HYOSUNG participated in a summit with Cambodian Prime Minister Hun Manet to discuss ways to strengthen cooperation. During this meeting, HYOSUNG showcased its global network competitiveness and its world-leading products, such as spandex and polyester tire cords, requesting continued support and interest from the Cambodian government.

HYOSUNG currently collaborates with Cambodia through exports of polypropylene, which is used in products like ATMs, tire reinforcements, PET bottles, and textiles. With the increasing presence of foreign companies in Cambodia, particularly in the automotive and tire sectors, HYOSUNG’s business scale is expected to grow further.

Vietnam | A Glimpse into HYOSUNG’s Vision for a Sustainable Future

▲ Exploring future business strategies with Vietnamese Prime Minister Phạm Minh Chính in July 2024.

HYOSUNG has maintained a solid partnership with Vietnam since 2007 and is now planning to bring its envisioned business model to life here. With an investment worth KRW 1 trillion, HYOSUNG is set to establish a bio-butanediol (BDO) plant in the Bà Rịa-Vũng Tàu industrial complex. The company aims to be the first in the world to implement a fully integrated production system for bio-based spandex, positioning itself to lead the sustainable materials market.

In addition, HYOSUNG’s Lyocell tire cords, produced at its Vietnam facility, were the first in the industry to receive the prestigious FSC (Forest Stewardship Council) certification for sustainable materials. This certification is awarded to products made through sustainable methods that preserve forest resources. HYOSUNG is committed to reducing harmful substances in its production processes, using eco-conscious techniques to produce tire cords. The cords are made from cellulose extracted from wood, making them 100% biodegradable. The company also plans to introduce a smart factory system across all its Vietnam plants, integrating IT technology to manage energy efficiently and create a manufacturing environment that addresses the climate crisis.

India | A Global Partner with Growth Momentum

▲ Hyosung TNC's factory, established in 2019, with an annual production capacity of 19,000 tons.

India presents a lucrative market for both domestic demand and exports, especially in the textile industry. Since 2007, HYOSUNG has focused on key products like spandex, tire cords, and gas-insulated switchgear (GIS) in the Indian market.

Spandex has been a core business for HYOSUNG, maintaining its global No.1 position for 13 years and capturing around 60% of the Indian market. By February 2025, the company plans to expand its spandex production facilities for diapers, strengthening its local production capacity. Beyond India, HYOSUNG is also expanding its market dominance in Europe, the Middle East, and Africa by offering cost-effective and reliable product supplies to meet the surging demand.

Tire cords, along with spandex and polypropylene, are part of HYOSUNG’s "Big Three" reinforcement materials. Hyosung Advanced Materials' PET tire cords produced in India have achieved a 50% market share, maintaining a leading position for over two decades.

China and Japan | Growth Partners and Competitors

▲ Hyosung Advanced Materials' hydrogen high-pressure container made of carbon fiber

China, which accounts for about 70% of global demand for clothing consumption, is also a major consumer of spandex. Hyosung TNC is investing a total of USD 229 million in Ningxia, China, to expand its spandex and PTMG production facilities. With this expansion, the company plans to produce 55,000 tons of spandex annually by February 2025, and 100,000 tons of PTMG by March of the same year.

HYOSUNG is also pushing to secure its position as the third-largest global player in the carbon fiber market, a sector long dominated by Japan. In 2011, Hyosung Advanced Materials developed high-strength carbon fiber using its own technology, becoming the first in South Korea to compete in this global market. Carbon fiber is lighter yet stronger than steel, offering superior corrosion and heat resistance. According to the Korea Industry Technology Institute, the global carbon fiber market is expected to grow at an average annual rate of 11%, with demand exceeding 177,000 tons by 2026.

Carbon fiber is classified as a strategic material by many countries and is subject to export controls. Its complex manufacturing process creates a technical challenges, making HYOSUNG the only producer of carbon fiber in Korea. The challenge now is to close the technology gap with Japan and navigate the oversupply in China. HYOSUNG plans to invest approximately KRW 1 trillion by 2028 to increase its annual production capacity to 24,000 tons.

Having built a global network spanning 30 countries and 135 business locations, HYOSUNG’s pioneering spirit has allowed it to remain at the forefront of future industries, despite numerous challenges. Looking ahead, HYOSUNG will continue to drive innovation in East Asia, leveraging advanced technologies and growth industries to maintain its leadership in the region.