A meeting that affirmed the close relationship between Hyosung and Zhejiang Province of China took place on August 25. Chairman Cho Hyun-Joon and the governor of Zhejiang met to discuss business cooperation in detail. It was an occasion for solidifying cooperation and mutual prosperity beyond the 20-year friendship between Hyosung and Zhejiang.
Hyosung Chairman Cho Hyun Joon met with Zhejiang Governor Yuan Jia Jin on August 25 at the company’s office in Banpo to discuss business cooperation in the future. The meeting was arranged at the request of Governor Yuan, who was visiting South Korea from August 23 to 26. The governor was keen to meet the chairman as Hyosung was one of the leading Korean investors in Zhejiang.
Besides Governor Yuan Jia Jin, the Chinese delegation at this meeting included Deputy Secretary General Ying Xiong, Director Sheng Qiuping of the commerce department, and 10 other officials. On the Hyosung side, the meeting was attended by Chairman Cho Hyun Joon, President Cho Hyun Sang, CEO Park Joon Hyung, PU Head Lee Chang-hwang of Spandex China Office, PU Head Hwang Yun Eon of China Industrial Materials, and Executive Managing Director Kim Yong Seop of Hyosung TNC.
This is the second time a leader of Zhejiang Province is visiting Hyosung. Explaining the ties between Hyosung and Zhejiang, CEO Cho Hyun Joon shared how General Secretary Xi Jinping visited Hyosung in 2005 in his capacity as Zhejiang Party Secretary. “Secretary Xi discussed ways of developing the economy of Zhejiang with Honorary Chairman Cho Suk Rae, who attended an investor roadshow hosted by Secretary Xi to provide support to Zhejiang’s investment campaign,” he explained. Chairman Cho especially emphasized the strong bond between Zhejiang and Hyosung. “Zhejiang is the cornerstone of global Hyosung. The province is like a close friend that Hyosung has grown up with over the last 20 years. Following in the footsteps of our predecessors, we will do our best to fulfil our role as a partner that Zhejiang could rely on,” he added.
This year marks the 20th anniversary of establishment of operations in Zhejiang Province. In 1999, Hyosung pursued the construction of its first overseas manufacturing plant (Spandex factory) in Jiaxing, Zhejiang Province. At that time, Chairman Cho Hyun Joon was spearheading the C-Project (China Project). A localization strategy was a key element of Hyosung’s global market expansion, with the Jiaxing area of Zhejiang becoming the base from which the company was aiming to conquer the global market and China’s domestic market.
As a result, Hyosung’s spandex rose to become the world’s number one spandex product. Moreover, Hyosung began operations of a manufacturing plant for the production of tire cord, nylon film, and polyester raw material in addition to spandex, eventually securing a dominant position in the Chinese market that the company maintains to this day.
In 2015, Chairman Cho, with the help of Yuan Jia Jin who was the deputy governor of Zhejiang Province at that time, decided to invest $900 million in Quzhou, Zhejiang Province. Such decision was a key part of initiating Hyosung’s second phase of growth. Out of this investment amount, Hyosung spent $300 million in 2017 for the construction and operation of a manufacturing plant for the production of spandex and NF3, a gas used for cleansing applications in the semiconductor industry. In 2017, the company invested $72 million in Jiaxing to expand its nylon film business. It is also planning to invest $39 million in the town of Zhapu in Pinghu County, Jiaxing Prefecture for the augmentation of its PTMG (a raw material used in spandex) plant. This plant is scheduled to be operational in October this year.
At this meeting, Hyosung asked the Zhejiang Province delegates to improve the business environment to make it easier for Hyosung to expand its business in the future. It also asked the government’s support in building plant power infrastructure, especially with regard to the adoption of renewable energy and easing of rules related to these implementations. “Over the past 20 years, Hyosung has contributed greatly to Zhejiang’s economy and the creation of jobs in this region, and we firmly believe that the company will contribute to regional development in the years to come. We hope that Hyosung will participate in the development of Zhejiang’s main industries so that we could grow and develop in a mutual way,” Governor Yuan Jia Jin replied.
Since opening a trade office in Beijing in 1988, Hyosung has been consistently expanding its China business by using the office as an outpost for targeting the Chinese domestic market and the global market. Currently, Hyosung operates 15 manufacturing subsidiaries in Zhuhai, Qingdao, and Nantong, including Jiaxing and Quzhou in Zhejiang Province, and has 3 trading companies in Beijing, Shanghai, and Guangzhou. In particular, Hyosung has invested more than US $ 1.5 billion in key products such as spandex and tire cord, which have become the best in the world; sales from its Chinese subsidiary exceeded $2.2 billion last year. The company also contributed to job creation by hiring more than 7,000 people and made social contributions such as giving earthquake relief funds, supporting promising students to further their studies in South Korea, financing industry-academy research on textiles, and providing scholarships.
Article | Communication Team
Photo | Manager Choi Sang-won (Communication Team)