Our challenge toward a more distant and broader world never stops. Let me introduce “management by walking around”. We are now making inroads into the global market with Vietnam and India serving as the bridgeheads.
Advancing into the global market with Vietnam and India as the bridgeheads
Hyosung, a global enterprise exporting to more than 70 countries around the world, chose Vietnam and India as the strategic foundation for centennial Hyosung and plans to advance into overseas markets more aggressively from this point onwards.
Firstly, we will transform Hyosung Vietnam into a global outpost that will produce core products, such as spandex and tire cords, for the European and Asian markets, and foster Hyosung India as the forward base for penetrating the Indian domestic market by continuously constructing new plants and expanding existing plants.
Chairman Cho Hyun-joon is reinforcing management by walking around and strengthening the global network with a focus on core markets. Cho continued his global business efforts, meeting with Indian Prime Minister Narendra Modi just 10 days after he met with Vietnamese Prime Minister Nguyen Xuan Phuc on February 8. He is ready to stretch into the wider world with Vietnam and India serving as the bridgeheads.
Hyosung’s global production base, Vietnam
Initially, Chairman Cho Hyun-joon met Vietnamese Prime Minister Nguyen Xuan Phuc in Hanoi, Vietnam on February 7, and agreed to reinforce their business cooperation. “Hyosung is the largest investor engaging in various businesses in the Northern, Central and Southern parts of Vietnam, and Hyosung Vietnam is well-positioned as a hub for advancing into the global market,” he said. “We are planning to expand our business not only in areas where we are No. 1 in the world, such as spandex and tire cords, but also in chemicals and heavy industries.” During this meeting, Cho expressed his strong will to invest in chemical and heavy industries, e.g. polypropylene and motors, at some point, and presented a specific blueprint.
Hyosung invested in Ba Ria-Vung Tau in the southern part of Vietnam last year, and has been carrying out the investment procedure for construction of the polypropylene plant, the DeHydrogenation (DH) facilities for this plant and the LPG storage tank since last year. Hyosung is also considering constructing an additional production subsidiary in Quang Nam in the central part of Vietnam. Once this project is completed, Hyosung Vietnam will complete a production base for producing the products of all its business divisions while targeting the global market both in name and reality.
The vision of building Vietnamese infrastructure, Hyosung
Vietnam urgently needs to build its infrastructure, such as power, roads, ports and urban development, due to the rapid growth of its economy. Chairman Cho Hyun-joon said he is confident that he will be able to capitalize on the company’s technology and know-how of power transmission and construction it has amassed over a long period of time to be successful in the Vietnam infrastructure project.
In particular, he said that he would help Vietnam quickly become an importer and exporter of extra-high-voltage transformers through technology transfer. In addition, they discussed IT businesses, such as ESS, ATM, electronic payment and Fintech. Cho emphasized the importance of manufacturing innovation, e.g., combining existing manufacturing processes with IT technology such as big data. In the rapidly changing global economic environment, he said that he expects Vietnam to actively engage in IT businesses at the governmental level to proactively respond to it, and he hopes that Hyosung, which possesses the best technologies in Korea, will have more businesses opportunities in areas such as smart factory, renewable energy, ATMs and electronic payment.
Hyosung, a global enterprise exporting to over 70 countries around the world, chose Vietnam and India as the strategic foundation for centennial Hyosung and plans to advance into overseas markets more aggressively.
The first spandex plant in India
After the meeting with the Vietnamese Prime Minister, Chairman Cho Hyun-joon met Prime Minister Narendra Modi in Mumbai, India on February 18, and agreed to construct a spandex plant in Maharashtra. It is the first spandex plant that Hyosung is slated to build in India. It is expected to form the foundation for making inroads into the domestic market of that country.
Hyosung started its first business in New Delhi in 2007, and has been operating a trading company there since 2012. We have been expanding our business ever since. For example, we erected the extra-high-voltage circuit breaker plant in Pune in 2016, and our annual sales exceeded $300 million. Cho said, “India is one of the world’s largest textile markets, and I am expecting that the size of its consumer market will grow remarkably. As Hyosung was able to build the new plant thanks to the Indian government’s full support, I expect that Hyosung and the India economy will grow together.”
As a result, Hyosung decided to invest to construct a new spandex plant. It is planning to purchase a 396,694㎡ site in the AURIC industrial complex near Aurangabad, an industrial city in Maharashtra, India, and complete the construction of the plant by 2019. The company will continuously increase investments according to market demands and growth forecast. India also expects that the new spandex plant will help related industries, such as weaving, knitting, dyeing and sewing, to grow, and lead to an overall expansion of employment, including the hiring of excellent manpower, and invigoration of the economy.
A step forward in improving India’s future competitiveness
Meanwhile, Chairman Cho and Prime Minister Modi attended ‘Magnetic Maharashtra Convergence 2018.’ The Maharashtra state government of India hosted this exhibition for the first time this year to present the direction of the country’s economic development, and attract foreign investments in a range of areas, such as manufacturing, export-oriented industries, infrastructure development, smart city and IT.
The CEOs of leading Indian and global enterprises, such as Chairman Cho, Chairman Ratan Tata of Tata Group and Chairman Mukesh Ambani of Reliance Group, attended the opening ceremony. “Thanks to the Indian government’s full support, we are going to erect the long-cherished spandex plant in India, and the production subsidiary producing extra-high-voltage circuit breakers in Pune is working tirelessly to build the power infrastructure of India,” Cho added in a congratulatory message as the representative of the corporate participant in the exhibition, “Hyosung will find a future in India which is emerging as a key player on the world stage, and become an enterprise loved by Indians.”
Written by the Editorial Office