Chairman Hyun-Joon Cho of the Hyosung Group met with Yuan Jia Jin, governor of Zhejiang Province of China, on Aug. 25 at the Banpo head office building and sought ways to promote mutual cooperation in business.
The meeting was held at the request of Governor Yuan Jia Jin who visited Korea from Aug. 23 to Aug. 26 and wanted to see Hyosung, the leading Korean company that has invested heavily in Zhejiang Province, and Chairman Hyun-Joon Cho.
It is the second time Zhejiang Province’s top leader visited Hyosung following President Xi Jinping (the then party secretary of Zhejiang Province) who met with Honorary Chairman S. R. Cho in 2005.
Besides governor Yuan Jia Jin, more than ten members of the delegation from Zhejiang Province participated in the meeting including Assistant Chief Secretary Ying Xiong and Director Sheng Qiuping of the Department of Commercial Affairs. The participants from Hyosung included Chairman Hyun-Joon Cho, Executive Vice President H. S. Cho, CEO Joon Hyung Park of Hyosung Chemical, President Chang Hwang Lee of Spandex China; President Yoon Eon Hwang who is in charge of industrial materials in China, and Executive Managing Director Yong Seop Kim of Hyosung TNC, etc.
“We have grown in China for the past 20 years together with Zhejiang Province as the base of the Global Hyosung. I hope Zhejiang Province will continue to be a partner of the Centennial Hyosung by maintaining the friendship forever,” Chairman Cho said during the meeting.
■ Chairman Hyun-Joon Cho: “The trust relationship has been established for two generations from the time President Xi Jinping was the governor of Zhejiang Province.”
“When President Xi Jinping visited Hyosung in 2005 as the party secretary of Zhejiang Province, I met him together with Honorary Chairman S. R. Cho and sought ways to boost the economy of Zhejiang Province. At that time, the Honorary Chairman personally participated in the briefing session for investment in China hosted by Party Secretary Xi Jinping and supported the effort of Zhejiang Province to attract investment. In accordance with the wish of the Honorary Chairman, I will do my best to make Hyosung the most trustworthy partner of Zhejiang Province,” Chairman Cho said.
■ Hyosung has strengthened the basis for “Global Hyosung” after 20 years of operation in Zhejiang Province, China.
Hyosung is celebrating the 20th year of its business operation in Zhejiang Province this year. In 1999, a factory was built by Hyosung in Jiaxing, Zhejiang Province in China as the first overseas production base of Spandex by the initiative of Chairman Hyun-Joon Cho under the C(China)-Project. Chairman Cho targeted the domestic sales in China as well as the global market with a localization strategy based mainly in Jiaxing, Zhejiang Province.
As a result, Hyosung became the No. 1 enterprise in the world’s Spandex market in 2010. Hyosung maintains a dominant position in the Chinese market operating factories in Jiaxing, which produce not only Spandex but also tire cord, nylon film, polyester yarn, etc.
Together with Governor Yuan, the vice governor at the time, Chairman Cho decided in 2015 to invest a total of 900 million dollars in Quzhou, a city in Zhejiang Province, for the second leap forward of the C-Project. So far, Hyosung has invested 300 million dollars to build and operate a factory producing Spandex and NF3 -- the gas used for cleaning semiconductors -- from 2017.
In addition, Hyosung invested 72 million dollars in Jiaxing in 2017 to increase the production capacity of nylon film, which is used for food packing. An additional 39 million dollars was invested in Zhapu, Pinghu City, Zhejiang Province for the extension of the factory producing PTMG, the raw material for Spandex, with a plan to begin operation in October this year.
■ Governor Yuan recognizes the economic revitalization of Zhejiang Province achieved by the investment of Hyosung.
During the meeting, Hyosung requested the improvement of business environment in Zhejiang Province for the expansion of future business, citing the need for the support of the provincial government and deregulation for the expansion of power infrastructure including the introduction of new and renewable energy.
“Hyosung has greatly contributed to the promotion of economy and creation of jobs in Zhejiang Province for the past 20 years, and I believe that Hyosung will continue to make much effort for the development of Zhejiang Province. I hope Hyosung can keep growing with Zhejiang Province by participating in the development of the main industries of Zhejiang Province in the future,” Governor Yuan said.
Meanwhile, Hyosung opened a trade office in Beijing in 1988 and expanded its business in China, which has been used as an outpost for targeting the global market as well as the Chinese domestic market. Currently, Hyosung has 15 manufacturing corporations in Jiaxing and Quzhou in Zhejiang Province, Zhuhai, Qingdao, and Nantong, and it is operating three trading corporations in Beijing, Shanghai, and Guangzhou.
Hyosung has invested more than 1.5 billion dollars in China for the production of its core products such as Spandex and tire cord, which are ranked no. 1 in the world. Last year, Hyosung sold more than 2.2 billion dollars’ worth of products through its China corporation and contributed to job creation by employing more than 7,000 local people. In addition, Hyosung has carried out various social contribution activities including donating a relief fund for earthquake victims, etc., supporting excellent students who wish to study in Korea, pursuing industry-academe cooperation for improving textile technology, and scholarship assistance.
