500 Million Dollars Yarn Investment in Turkey from Hyosung
Due to the Covid-19 crisis, there has been an increase in the demand for elastane, that is, spandex yarn, both in Turkey and in the world. When the worldwide production of 1 million 200 thousand tons could not meet the need, both Turkish and foreign companies took action for the production of spandex. According to the news in Dünya Newspaper; South Korean company Hyosung has started preparations to make one of the largest international direct investments in the history of the Turkish Republic. The company, which has been working on expanding lines 3 times since it entered the Turkish market in 2007, is planning 2 different investments, both on the manufacturing of elastane yarn and polyester, on new land this time.
Investments will start in March next year
Hyosung Istanbul Textile, continuing its negotiations with both the Ministry of Industry and the Presidency Investment Office, conducts research in 4 regions, Tekirdağ, Bursa, Adana, and Edirne, for the aforementioned investment. In addition to this investment, the company will make a new line investment of 80 million dollars in its existing facilities in Tekirdağ. With two investments, Hyosung Istanbul Textile aims to increase its employment from 580 to 1,500 and its income from 355 million dollars to 2 billion dollars. The company plans to complete its investments, which will start in March next year, in 1.5 years.
Annual Turnover Expectation from Initial Investment: $703 Million
Hyosung Istanbul Textile representative stated that they have carried out 3 line expansions at the company’s existing manufacturing facility in Çerkezköy, Tekirdağ. The last line expansion work was realized with an investment of 50 million dollars and the number of employees 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 expressed the following regarding the subject, ‘‘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.’’
‘‘We Will Provide 700 Additional Employment’’
The company representative shared the following information about the large investment 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 an investment of around 470-500 million dollars, we will provide 700 additional job opportunities and our annual production will be 67 thousand tons through the new capacity to be added. 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 are over 1.7 billion dollars. 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.’’
Turkey Will Become a Center for Elastane
The annual production of spandex 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 spandex production, also known as spandex. With the investments expected to be completed by the end of 2023, Turkey’s total lspandex production capacity will increase from 38 thousand tons to 163 thousand tons. This means 14 percent of the world’s total spandex production.
