Strikes at mills in Ulsan, Korea, could cause a shortage of synthetic fibre. Spandex and acrylic users are already facing problems, reported Express India..

According to trade reports, the strike started at the Hyosung Corporation in late May and has since spread to other synthetic fibre mills such as Taekwang Industrial Co, Daehan Synthetic Fibre Co and Kohap. The Taekwang plant stopped all production on June 12.

The industry said it will take more than one month to return to normal production activities in the case of synthetic fibre mills.

Meanwhile, Mr Wonho Lee, chairman of Korean Chemical Fibres Association, revealed a restructuring plan for Korean synthetic fibre industry at a press conference.

The restructure would reduce labour from 16,000 to 10,000 by 2005, freeze wages and scrap old equipment as the industry rationalises to meet the demands of trade post 2005.

Mr Lee said that synthetic fibre price is now almost half when compared with 1995 global oversupply putting financial pressure on mills.