By Hwang Soon-min and Minu Kim
Hyosung Group will expand business opportunities in Vietnam beyond the traditional textiles and industrial equipment with investments into chemical and heavy industries.
The Korean conglomerate said on Sunday its chairman Cho Hyun-joon visited Vietnam and unveiled the plan during a meeting with the country’s Prime Minister Nguyen Xuan Phuc in Hanoi on Thursday.
Hyosung plans to expand business portfolio to include chemistry and heavy industries in addition to its industry-leading business areas of spandex and tire codes by focusing on Vietnam as the company’s foreign manufacturing base.
Since last year, Hyosung has invested $1.3 billion to build a polypropylene factory and related facilities in the south of Vietnam. The company is also planning to establish another office in the Quang Nam province. "Our Ulsan polypropylene factory in Korea whose capacity was upgraded by 300,000 tons last year will be converted into a high-value PP line for pipes and the new propylene factory in Vietnam will roll out general-purpose products to reduce costs and raise profitability at the same time,” said a company official.
Hyosung has operated a local office and manufacturing complex in Vietnam’s Nhon Trach since 2007, where it has produced spandex, tire codes, steel codes and industrial motors.