Ba Ria-Vung Tau province okays $540 mln Hyosung carbon fiber factory

South Korean giant Hyosung has received in-principle approval from Ba Ria-Vung Tau's industrial park authority to build a $540 million carbon fiber factory in the southern coastal province.

Kim Kyung Hwan, CEO of Hyosung Vietnam Co. Ltd., discussed the investment at a Monday meeting with Ba Ria-Vung Tau Chairman Nguyen Van Tho. He said the firm was completing procedural tasks related to land delivery, construction, environmental protection and fire hazard certificates and sought relevant support from provincial authorities.

The 19.2-hectare project, located at the Phu My 2 Industrial Park, will have a first phase investment of $120 million, Kim said, adding that it was Hyosung’s first carbon fiber plant in Vietnam.

The factory will have an annual capacity of 4,800 tons in the first phase, which is scheduled for operation from February 2025. An additional capacity of 7,200 and 9,600 tons will be added in the second and third phases starting December 2028 and December 2031, respectively.

Provincial Chairman Tho assured that Ba Ria-Vung Tau would facilitate Hyosung’s investment and business activities in the province.

Hyosung Vietnam was established in May 2007. It has so far invested in manufacturing tire cord, spandex, steel cord, technical yarn, nylon, polytetramethylene ether glycol (PTMG), and motors.

The Vietnam subsidiary recorded a profit of KRW121.4 billion ($94.35 million) from revenues of KRW2,123.1 billion ($1.65 billion) in 2022, according to the parent company’s financial statements.

So far, Hyosung has invested $3.5 billion in Vietnam: $1.9 billion in the southern province of Dong Nai; $1.4 billion in Ba Ria-Vung Tau; $200 million in the central province of Quang Nam; and $100 million in the northern province of Bac Ninh.