HS Hyosung Advanced Materials Invests $100M in Vietnam

HS Hyosung Advanced Materials plans to invest approximately $100 million to establish an automotive carpet plant in Da Nang, Vietnam, expanding its manufacturing footprint at an existing production site. The South Korean company has secured additional land at the facility, which currently produces tire cords and airbag-related products. The planned expansion will add facilities for BCF yarn and automotive carpet production, with operations targeted for 2029. The investment will strengthen the company’s ability to produce automotive interior materials in Vietnam while supporting its broader strategy for environmentally friendly products and global electric vehicle supply.

Integrated Production System Will Support Carpet Manufacturing

The planned Da Nang facility will establish an integrated production system spanning raw material imports, BCF yarn manufacturing, and carpet production. By bringing these stages together at one site, HS Hyosung Advanced Materials intends to build a dedicated manufacturing base for automotive carpets while leveraging its existing production infrastructure. The expansion will add new capabilities alongside the site's current tire cord and airbag-related operations. This approach provides a broader manufacturing platform in Vietnam and is intended to support the company’s growing automotive materials business through an integrated supply chain.

Eco-Friendly Materials Target Growing Automotive Demand

The company is also expanding its automotive carpet portfolio with materials designed to reduce reliance on conventional feedstocks. Its planned product range includes carpets using bio-based raw materials, recycled PET, and recycled nylon. These materials are intended to support the development of more environmentally friendly automotive interiors while maintaining the company’s focus on supplying the vehicle industry. The material strategy also aligns with increasing attention to recycled and bio-based inputs across automotive manufacturing. The Da Nang expansion therefore combines additional production capacity with a broader push toward more sustainable material options for automotive applications.

Vietnam Plant Will Support Global EV Supplies

A key objective of the expansion is to increase supplies of automotive carpets for electric vehicles in global markets. Vietnam will serve as the location for the new production facilities, adding carpet and BCF yarn capabilities to the company’s existing manufacturing presence there. The planned investment reflects an effort to position production closer to automotive supply chains while developing products suited to emerging vehicle requirements. With production facilities targeted for completion by 2029, the project will provide additional capacity for automotive carpet manufacturing and support the company’s efforts to expand its presence in the global EV materials market.

Industry Impact & Outlook

The investment could strengthen Vietnam’s role within automotive component manufacturing by adding integrated capacity for yarn and carpet production while supporting global EV supply requirements. For HS Hyosung Advanced Materials, the project expands its product portfolio beyond its existing tire cord and airbag-related manufacturing at the Da Nang site and creates additional capacity for lower-impact automotive interior materials. The combination of bio-based and recycled inputs with localized production may also improve the company’s positioning as automakers increase attention to material sustainability. The next major milestone will be the development of the planned facilities ahead of the targeted 2029 production timeline.

Frequently Asked Questions

What is HS Hyosung Advanced Materials investing in Vietnam?
HS Hyosung Advanced Materials is investing approximately $100 million to build an automotive carpet plant in Da Nang, Vietnam. The project will use additional land at the company’s existing production site, which currently manufactures tire cords and airbag-related products. The new facilities are planned to produce BCF yarn and automotive carpets, creating an integrated manufacturing system covering raw material imports, yarn production, and carpet manufacturing. The company also plans to expand environmentally friendly carpet offerings using bio-based raw materials, recycled PET, and recycled nylon for global automotive and EV markets.