Hyosung TNC invests $1 billion in Vietnam, builds 200,000 tons/year bio-BDO plant

Hyosung TNC aims to proactively respond to the restructuring of the global materials market around sustainable products by investing US$1 billion to build multiple Bio-BDO production facilities with a capacity to produce 200,000 tons annually.

Hyun-Joon Cho, Chairman of Hyosung, said: “The bio-business, which converts conventional fossil resources into environmentally friendly resources, will become a core pillar of Hyosung in the next 100 years. We will enhance Hyosung’s premium brand status by strengthening our global sustainable market penetration based on our consistent production system of Bio-BDO and Bio Spandex.“

BDO (Butanediol) is a chemical used as a raw material for PTMG, which is used to make spandex fibers. In addition to spandex fibers (PTMG), the applications of BDO have expanded to engineering plastics, biodegradable packaging, shoe soles, industrial compounds and many other industries.

Bio-BDO is produced by fermenting sugars derived from sugar cane, thereby 100% replacing traditional fossil fuels such as coal. It is expected to attract a lot of attention in the sustainable materials market.

Geno’s proven technology will enable Hyosung TNC to accelerate its project and start production and sales of Bio-BDO with an annual capacity of 50,000 tons in the first half of 2026.

World’s first fully integrated production system for bio-spandex

With this investment, Hyosung TNC has secured the largest bio-spandex factory in Vietnam. In particular, it is the first in the world to establish a vertically integrated production system for bio-spandex, from raw material to fiber.

The integrated production system for bio-spandex is optimized for customers in the global sustainable textile market, including brands and retailers in Asia, Europe and the United States. This system improves production efficiency through stable supply of raw materials and enables rapid response to market demands by accelerating production system operations. In addition, it ensures cost competitiveness through lower transportation costs and alleviates environmental impact by saving fuel used for transportation.

Sustainable textile sales, 20% in 2030

regenTM BIO is recognized as an innovative product that changes the trend of sustainable fashion and textile industry by using natural resources as raw materials, thus minimizing resource consumption and environmental pollution.

As of this year, the global sustainable textile and fashion market is valued at around $23 billion, with an average annual growth rate of over 12.5%. It is expected to grow by around $75 billion by 2030, including upstream and downstream companies. Hyosung TNC plans to increase the sales volume of sustainable spandex, which currently accounts for 4% of total spandex sales, to around 20% by 2030, more than five times larger from now.