Hyosung Group Chairman Cho Hyun-joon said on Dec. 2 that the group will expand its spandex plant in Brazil after Turkey to cement its No. 1 status in the global spandex market.
Related to this, Hyosung T&C will invest 40 billion won (some $36 million) by December next year to increase the production volume of its spandex plant in Santa Catarina in southern Brazil by 10,000 tons.
When the expansion is completed, the production capacity of the Santa Catarina plant will be doubled to a total of 22,000 tons.
The expansion comes as the COVID-19 increased sales of comfortable clothes such as homewear and Athleisure in the Latin American clothing market, which led to a surge in demand for spandex, a flexible fiber.
The Brazilian market is applying twice as high tariffs as other regions, with the import tariff on spandex reaching 18 percent, which requires a local production base to maintain a competitive price.
Moreover, Brazil borders 10 of the 12 other countries in South America and has a sea border, which makes it advantageous for exports to nearby areas.
After establishing a production base in Brazil in 2011, Hyosung T&C has strengthened its market dominance in the Americas, ranking first with a 65 percent market share in Brazil.
Hyosung Chairman Cho said, "The unprecedented crisis, such as COVID-19, is adding to uncertainty and speeding up the pace of change. In times of change, we should continue to invest in the future and turn the crisis into an opportunity."