SEOUL, South Korea, Aug. 18, 2021 /PRNewswire/ — Hyosung Group, led by its chairman Hyun-Joon Cho, drew market attention for its “earnings surprise” on the KOSPI in the second quarter of this year.
Analysis suggests this is due not only to a rapid rise in demand for the leading global products of spandex and tire cords but also to the development of future growth engines such as liquefied hydrogen and carbon fiber promoted by the chairman.
Chairman Cho announced, “We are creating new future value through a spirit of endless challenge without resting on our laurels.”
- Hyosung Group records best ever results in second quarter
Hyosung TNC reached sales of 2.142 trillion won and operating profit of 387.1 billion won in the second quarter of this year. Both figures were the highest ever for one quarter. This operating profit was converted from an 8.2 billion won loss in the same quarter the previous year.
Hyosung TNC‘s key product, the “semiconductor of the fiber industry”, is spandex. This new material made of polyurethane boasts strength and elasticity and is used in athletic wear for mountain climbing, leggings, and more. Hyosung TNC holds 33% of the global market share for spandex, leading the world.
Hyosung Chemical’s main product, PP, had an operating profit of 71.3 billion won, an increase of 1881% over the previous year (3.6 billion won), due to rapid price increases. PP is used in various products such as pipes, fiber, film, and medical equipment. Supplies were delayed due to the maritime freight crisis, and so prices rose about 50% compared to the beginning of the year.
Hyosung Advanced Materials’ main product is tire cords, which strengthen tires. The operating profit for these in this second quarter was 117.8 billion won, converted from a loss of -42.8 billion won in the same period last year. As the forward industries of automobiles and tires rebounded, the price of tire cords rose significantly. Hyosung Advanced Materials’ polyethylene (PET) tire cords are the first by a wide margin, holding 50% of global market share.
Industry sources predict that the total operating profit of the group, which combines Hyosung affiliates, Hyosung Heavy Industries, and Hyosung Co., Ltd., will reach 2.1 to 2.3 trillion won this year.
- Discovery of new growth engines such as hydrogen
Hyosung is also focusing on discovering new industries for future growth. Chairman Cho announced last year that Hyosung would enter the hydrogen industry.
Hyosung Heavy Industries is going to build a 13,000 tons per year liquefied hydrogen plant on Hyosung Chemical’s site through a joint venture with Linde, an international gas and chemical specialist. It plans to gear up these efforts starting in March of 2023. Hyosung Heavy Industries will invest 1 trillion won over the next five years to expand its liquefied hydrogen production capacities to 39,000 tons.
Hyosung is a comprehensive fibre manufacturer that produces world-class products, providing innovation and solutions to the textile industry. Hyosung’s creora® elastane is the world’s largest spandex brand, supplying the broadest range of stretch fibre offerings supported by exceptional technology and quality. Mipan® nylon and specialty polyester provide functional and sustainable fibre solutions that are essential to today’s dynamic textile market. Visit our website at www.hyosungtnc.com and http://www.creora.com for all the latest trend, event and product updates.
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