Turkey's and the world's demand for elastane, that is, spandex yarn, has increased with the COVID-19 crisis. When the production need of 1 million 200 thousand tons in the world could not be met, many companies, especially startups in Turkey, pressed the button for spandex production. After the 200 million dollar investment announced by Migiboy in September, South Korean Hyosung has now taken action. South Korean Hyosung, which entered the Turkish market in 2007 with a spandex yarn investment of 350 million dollars, and has been working on expanding lines 3 times over the years, continues its preparations for one of the largest foreign direct investments in the history of the Republic. Planning two different investments, both elastane yarn and polyester, on a new land, the company has planned an investment budget of 500 million dollars for the elastane yarn investment.
Continuing its negotiations with both the Ministry of Industry and the Presidential Investment Office, Hyosung Istanbul Tekstil focused on 4 regions, Tekirdağ, Bursa, Adana and Edirne, for the said investment. In addition to this investment, Hyosung Istanbul Tekstil, which will make a new line investment of 80 million dollars in its existing facilities in Tekirdağ, aims to increase its employment from 580 to 1,500 and its income from 355 million dollars to 2 billion dollars with two investments. Another goal of the company is to complete the investment, which is planned to start in March next year, in 1.5 years.
150 new jobs from the first investment
According to the information given by the Hyosung Istanbul Textile representative, line expansion works were carried out 3 times in the company's existing factory in Çerkezköy, Tekirdağ. The last line expansion work was realized with an investment of 50 million dollars and the number of employment reached 580 from 450. Currently, the annual capacity has increased to 38 thousand tons. Explaining that they are planning two new investments depending on the increasing demand, the official said, “The first investment will be in the form of 2 line expansions on our existing land and the investment amount will reach 80 million dollars. The contribution of this investment to our annual capacity will be 8,400 tons. Our annual turnover expectation is 703 million dollars”.
The company representative shared the following information about the large investment, which is expected to reach 500 million dollars: “This investment will be one of the largest foreign direct investments both for us and for Turkey. We concentrated on Tekirdağ, Bursa, Adana and Edirne. With the investment we will make around 470-500 million dollars, we will provide 700 additional employments and our annual production will be 67 thousand tons. After this investment, the total Hyosung sales expectation is 1 billion dollars per year. The sales we expect from both existing and two new investments is over $1.7 billion. In this context, we expect exports to exceed 500 million dollars. One of our goals is to have sustainable elastane yarn prices for the local industrialists.”
Elastane base Turkey
Hyosung Istanbul Tekstil, which achieved a turnover of 140 million dollars in 2020, expects sales of 355 million dollars at the end of this year. The annual production of spandex or elastane in the world is around 1 million 200 thousand tons. Turkey's need is at the level of 60 thousand tons. While 20 thousand tons of this is met from the domestic market, the amount paid for 40 thousand tons of imports is expected to reach 400 million dollars. The increasing demand had mobilized Migiboy along with Hyosung. The company announced in September that it would make an annual spandex investment of 40 thousand tons with an investment of 200 million dollars in Niğde. These investments will enable Turkey to become the region's base in lycra production, also known as lycra. With the investments expected to be completed by the end of 2023, Turkey's total lycra production capacity will increase from 38 thousand tons to 163 thousand tons. This means 14 percent of the world's total lycra production.
Hyosung, one of the largest groups in South Korea, is also the world's largest elastane yarn producer. Stating that they currently meet 70 percent of the world's elastane yarn need alone, Hyosunt Istanbul Textile Authority explained that they are the only manufacturer in this field in Turkey. It was shared that Hyosung Istanbul Tekstil's new investment of 500 million dollars will be one of the three largest elastane yarn facilities of Hyosung Global.
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