Hyosung wagers on Brazil and announces a BRL 200 Million Investment in Expansion
The South Korean group Hyosung that produces the Creora spandex in Brazil has announced a BRL 200 million investment in the expansion of its plant in the country. The company, which is a member of Texbrasil (Brazilian Textile and Fashion Industry Internationalization Program) — the result of a partnership between Abit (Brazilian Textile and Apparel Industry Association) and Apex Brasil (Brazilian Trade and Investments Promotion Agency) —, is one of Colombiatex 2021’s participant.
According to the brand, the goal is to improve the Santa Catarina plant’s production capacity by 80%. Currently, the plant produces 12 thousand tonnes per year and shall increase it to 22 thousand.
The expansion was decided due to the rapid growth of demand for spandex in the Brazilian market, a synthetic fiber known for its stretching capacity. Changes created by the pandemic have increased the demand for such fiber, which is used, among other applications, in sportswear and homewear apparel. The country’s strategic location, bordering 10 other nations in South America, was another key point for the brand’s investment.
With the plant’s expansion, Hyosung expects to not only meet the increasing demand in the South American region, but also to preventively answer to the post-COVID-19 era. A world leader, Hyosung already accounts for 65% of the Brazilian market. Having established a production groundwork in the country in 2011, the company has strengthened its market share throughout the continent. “The unprecedented risk posed by COVID-19 has aggravated uncertainty and accelerated the speed of changes”, Cho Hyun-joon, Hyosung’s chairman explains. “During times of changes, we ought to transform a crisis into opportunity by continuously investing in our future”, the executive concludes.
In addition to Brazil, Hyosung relies on over 100 workplaces located in 30 countries, aside from nine other industrial plants in South Korea, China, Turkey, Vietnam, Brazil, and India.
The Brazilian Textile and Fashion Industry Internationalization Program (Texbrasil) works with companies in the textile and apparel sector developing strategies to conquer the global market. Over almost 20 years, it has helped around 1600 brands to enter the export trail, generating USD 9 billion in business. The Program is carried out through a partnership between Abit and the Brazilian Trade and Investments Promotion Agency (Apex-Brasil).creora, Hyosung, spandex