Hyosung, the second largest elastane producer in the world, has confirmed it will invest US$100m in a new Vietnamese facility.

"We are investing in Vietnam as the next step in Hyosung's global growth strategy and to serve the South East Asian market," said Gregory Vas Nunes, president of Europe and the Americas for the spandex performance unit of Hyosung.

"The new factory will be located in Nhon Trach, Ho Chi Minh, to ensure fast and reliable service in the region."

Since 2006, Hyosung has added 43,000 tons in new elastane capacity in Vietnam, Turkey and China plus additional investment in South Korea. Production is forecast to reach a total of 92,000 tons per year by 2008.

The Ho Chi Minh plant will manufacture 15,000 tons of elastane per year and is aiming to be operational by the second half of 2008.

just-style first reported the new plant opening on 12 October, citing local news source Yonhap news agency.