South Korea’s Hyosung Corp is to invest US$100m in its first spandex plant in India a part of a bid to increase its share of the spandex market in the country to 70%.
Following a meeting between the company’s chairman Cho Hyun-Joon and Indian Prime Minister Narendra Modi last week, the firm said it reached an agreement to establish a spandex plant in Maharashtra.
In a statement, Hyosung said it plans to purchase a 4.3m sq ft site in the Auric industrial complex near Aurangabad and complete construction by 2019. It added the company will continuously increase investment as market demands and growth are forecast.
Hyosung started its first business in New Delhi in 2007, and has been operating a trading company in New Delhi since 2012.
Prime Minister Modi added Korea is playing a key role in the ‘Made in India’ policy. “I hope that Hyosung’s investment will further solidify India’s competitiveness and industrial foundation, and I will be sure to help facilitate a business-friendly environment so that Hyosung will continuously invest in India,” he said.
As the world’s second-largest market with a population in excess of 1.3bn, “outstanding” IT technology and a highly talented workforce, India is an ideal location, according to Hyosung. The country is an emerging economy growing by more than 7% every year and is expected to become one of the top three economic powers in the world after China by 2030.
In addition, its textile market is also expanding rapidly, with the country’s spandex market growing by more than 16% a year on average from 2012 to 2017.
The Maharashtra state where Hyosung is constructing its plant is recognised as being the core region that accounts for more than half of Indian fibre production.
Hyosung’s spandex brand Creora accounts for about 60% of the Indian market. It focuses on the sale of spandex for Muslim wear including hijab, lingerie, sportswear, denim and diapers. In 2020, when the new plant will become fully operational, Hyosung says it will focus on expanding the high-value-added premium market.
It is hoped the new plant will also boost local industries such as weaving, knitting, dyeing and sewing.