South Korean fibre giant Hyosung has been given the green light to build a US$1.2bn complex in Vietnam in a move aimed a solidifying its presence in the country.
Covering 60 hectares, the facility will include a propane dehydrogenation (PDH) production plant, polypropylene (PP) plant, liquefied petroleum gas (LPG) storage tank, and LPG and petrochemical product warehouse at Cai Mep Industrial Zone in Ba Ria-Vung Tau located near Ho Chi Minh City. The complex is expected to come into commercial operation in 2020, according to Vietnam Investment Review.
The group plans to locally produce PP, which is used to manufacture textiles, various containers, drain pipes, and medical syringes.
The investment plan by Hyosung will see the start of a chemical and heavy industry business for the company in the country, in addition to its textile business. The company is also considering constructing an additional production subsidiary in Quang Nam in the central part of Vietnam.
Once the project is complete, Hyosung Vietnam will have attained a production base for manufacturing the products in all of its business divisions, targeting the global market “both in name and reality”, the company says.
Hyosung Vietnam has already implemented an integrated production system for spandex and tyre cords to maximise production efficiency in the country.
The company says that by increasing its investment in Vietnam, it will allow Hyosung to realise the export competitiveness of its domestic product bases.