Spandex demand stretches profits at Hyosung TNC
Published: 27 Jan. 2022, 16:38
Hyosung Group Chairman Cho Hyun-joon
Hyosung TNC, 20.3 percent controlled by Hyosung Holdings, announced net profit of 1 trillion won for 2021 Wednesday, up 499 percent over a year earlier.
Sales were 8.5 trillion won, up 66.5 percent, and operating profit 1.4 trillion won, a 434.1 percent rise.
Hyosung TNC made aggressive expansion of factories overseas since 2020 despite the pandemic. It expanded factories in Turkey and Brazil last year and built a new one in China. The new capacity in those three countries started production near the end of last year.
“Increased demand for spandex for apparel factored into the increased profit,” the company said in a release Wednesday.
“For our spandex brand Creora, material costs increased but there was still more demand than supply, leading to high profitability.”
Hyosung TNC predicted a good 2022, especially with its new factory in Ningxia, China, which will fulfill rising spandex demand in China, the company said.
Other Hyosung companies also did well in 2021.
Hyosung Advanced Materials, which manufactures industrial materials such as polyester for tires, recorded a net profit of 330 billion won last year, up 160 percent over a year earlier.
Hyosung Heavy Industries reported a net of 76 billion won in 2021 compared to a net loss of 796 million won the year before.
BY JIN EUN-SOO [[email protected]]
with the Korea JoongAng Daily
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