South Korea Company Invests USD 1 billion for Bio-textile Material Production in Vietnam

May 2024

The South Korean producer of spandex Hyosung TNC Corp. is set to invest USD 1 billion in new bio-textile material facilities in Vietnam, aiming to propel its growth in eco-friendly sectors.

The company recently obtained approval from the provincial government to construct a bio-butanediol (BDO) plant in Ba Ria-Vung Tau, with an initial capacity of 50,000 tons per year. By mid-2026, Hyosung plans to produce and distribute 50,000 tons of bio-BDO, with further intentions to expand its production capabilities to 200,000 tons annually.

BDO serves as a crucial raw material for poly tetramethylene glycol (PTMG), a key component in spandex fiber and various other products including engineering plastics, biodegradable packaging, footwear soles, and industrial compounds. Bio-BDO, produced through fermenting sugars derived from sugar cane, presents a sustainable alternative to fossil fuels, reducing carbon emissions significantly.

With evolving environmental regulations in global textile markets, Hyosung TNC aims to increase the proportion of sustainable products in its spandex sales to 20% by 2030, up from the current 4%. The sustainable textile market, valued at around USD 23 billion, exhibits a steady growth rate, offering substantial opportunities for Hyosung TNC.

The company plans to operate the world’s largest bio-spandex production complex in Vietnam, integrating the entire production process from raw materials to fibers. This consolidation of manufacturing facilities enhances efficiency, reduces logistics costs, and addresses environmental concerns by minimizing transportation fuels. Partnering with Geno, a US biotech firm specializing in sustainable materials, Hyosung TNC aims to revolutionize bio-BDO production, potentially cutting carbon emissions by up to 90% compared to conventional methods.

(Source: The Korea Economic Daily)

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