Hyosung Group, a conglomerate focusing on textile and chemical businesses, announced on February 3 that it has reported 12.46 trillion won (US$10.24 billion) in sales and 950.2 billion won (US$780.77 million) in operating profits last year. Despite global economic uncertainties, such as China's economic slowdown, lower raw material prices, possible financial crisis in emerging countries and higher U.S. interest rates, the company hit a record high in 2015 with overall growth in all business divisions.
According to the company's regulatory filing, its operating profit grew by 58.3 percent from a year earlier. Compared with 485.9 billion won (US$399.26 million) in 2013, the figure almost doubled (95.5 percent) in two years. This was due to balanced growth in all business divisions, such as textile, industrial material, chemical and heavy industry.
Thanks to the increase in sales of expanded spandex overseas productions and cost reductions, the textile business posted 426.2 billion won (US$350.21 million) in operating profits, up 17.8 percent from the same period a year ago.
After winning selective orders, which focuses on fast profits, and seeking global market expansion, its heavy industry business saw a remarkable 2,800 percent operating profit growth at 152.2 billion won (US$125.06 million), from 5.2 billion won (US$4.27 million) in 2014.
Its operating profits in the industrial material business grew 61.8 percent to 147 billion won (US$120.79 million) from a year earlier by securing new customers and expanding its market share, while the figure in the chemical sector increased 38.8 percent to 170.7 billion won (US$140.26 million).
Based on its core products, spandex and tire cord, Hyosung is currently establishing 20 global production bases in China, Vietnam, the Americas and Europe. In particular, its Vietnam plant, which produces core products including spandex and tire cord, has grown into its largest single production base, which posts annual sales of US$1 billion (1.22 trillion won), taking account of over 10 percent of the group's global sales, after investing US$990 million (1.2 trillion won) since the establishment in 2007.