SEOUL, South Korea--(BUSINESS WIRE)--Hyosung (KRX:004800) Cho Hyun Joon President has increased investments in China since his inauguration to set up a local production base in the country. A spandex plant is now under construction in Quzhou, China at a cost of 104 billion won. Hyosung is the current leader in the world spandex market with a share of 33 percent. Its unchallenged technological advantage was instrumental in staying ahead of any other competitor.
Cho Hyun Joon President put a lot of work into establishing a production base in China. He said, “We should make a foray into China, among others, to become No. 1 spandex business in the world,” and formed ‘Project C Team’ on his own account to jump into the Chinese market. C stands for China. In July, he met China’s Quzhou City Communist Party Secretary Chen Xin for the first time after a year and discussed cooperation.
Also in Quzhou, a 79.3 billion won facility to produce NF3 is under construction. NF3 or nitrogen trifluoride is a cleansing agent for silicon wafers. Hyosung seeks to build additional airbag fabrics factory in Changshu, Jiangsu Province at a cost of 67.2 billion won. The company acquired Germany’s airbag fabrics manufacturer GST (Global Safety Textiles) in 2011, completing the industry’s first vertical integration which covers airbag yarns, fabrics and cushions.
Hyosung subsidiaries in China employ local Chinese for jobs across all business processes including production, sales and purchase and also do various philanthropic activities. Largely thanks to these localization measures, their combined sales have surpassed 1 trillion won each year. Hyosung achieved record performances in 2015 and 2016, and posted its best quarterly result in the first quarter of this year, boosted by its brisk China business.