Hyosung TNC establishes bio-spandex production system in Vietnam

According to a statement on August 31, Hyosung has started commercial operation of its 50,000-tonne-per-year Butanediol (Bio-BDO) plant in Ho Chi Minh City.

Backed by a total investment of $1 billion, the project is equipped to expand its production capacity up to 200,000 tons annually depending on markey growth.

Photo courtesy of Hyosung

Carried out under Hyosung chairman Hyun-Joon Cho, the project is recognised as being able to reduce reliance on fossil-fuel-based raw materials and establishing a proprietary global stronghold for sustainable textiles.

Utilising Bio-BDO, Hyosung TNC manufactures Polytetramethylene Ether Glycol (PTMG), a primary raw material for spandex polymers, at its Dong Nai plant, which is then seamlessly linked to the mass production of 'regen Bio' at its Dong Nai spandex facility.

By achieving vertical integration from raw material procurement to finished products in a single production ecosystem, the company enhances raw material supply stability, while ensuring the transition from fossil to renewable raw materials, which contributes to reducing carbon emissions.

BDO, a key raw material for spandex, has traditionally been produced using petrochemical resources such as coal. However, the Bio-BDO introduced by Hyosung is manufactured by fermenting sugars extracted from sugarcane, with responsible sourcing and traceability verified through the VIVE Sustainable Programme.

Beyond its application in spandex material (PTMG), BDO's usage is expanding across diverse industries, including automotive interior materials, biodegradable resins, footwear soles, and industrial compounds.

Hyosung envisions developing the Vietnam facility beyond a mere manufacturing plant into a circular bio-material integrated platform spanning plastics and fine chemicals.

The fully integrated Vietnam bio-spandex production system is optimised to meet the demands of global premium bio-textile markets, including Europe and the US. Its ability to swiftly adjust production system operating speeds in response to shifting market demands enables efficient fulfilment of requests from global clients.

Bio-spandex used in high-performance apparel, such as sportswear, swimwear, and denim, perfectly replicates the elasticity and durability levels of conventional petrochemical products. As transparent traceability from raw material to final fibre production and the substitution of fossil fuels with renewable raw materials contribute to reducing carbon emissions, partnerships with global luxury and sportswear brands seeking proactive compliance with climate regulations and environmental, social, and governance standards are expected to strengthen.

Chairman Hyun-Joon Cho said, "The bio business, which converts conventional fossil fuels into plant-based raw materials, will serve as a core pillar for Hyosung's next 100 years. Based on our Bio-BDO and Bio-Spandex integrated production system, we must strengthen our global market expansion and elevate the prestige of Hyosung's premium brand."

South Korea's Hyosung TNC to invest $1 billion in Vietnam On March 30, Hyosung TNC received investment approval for the Hyosung BDO project from Ba Ria-Vung Tau People's Committee as part of its efforts to build the largest bio-spandex factory in Vietnam.

Hyosung committed to investing additional $4 billion into Vietnam South Korean industrial conglomerate Hyosung Group plans to inject another $4 billion into Vietnam, contributing to the country's economic development and implementing its corporate social responsibility.

Hyosung Vina reports accumulated losses of $760 million in Vietnam Hyosung Vina Chemical Co., Ltd. has reports accumulated losses of VND19.24 trillion ($769.6 million) and short-term debt exceeding short-term assets, leaving auditors doubting the company's ability to continue operating.