HS Hyosung Plans Advanced Materials Base in Mexico

HS Hyosung Plans Large-Scale Investment in Mexico

On September 25, HS Hyosung signed a memorandum of understanding with the government of the Mexican state of San Luis Potosí for a large-scale investment. Starting in 2027, the company plans to gradually expand its investment and establish an advanced materials production base in the state. The planned facility is intended to strengthen the company’s production and supply capabilities for the North American and global markets. The agreement establishes the basis for a longer-term manufacturing and supply expansion in Mexico, with the investment focused on advanced materials production and the company’s international market requirements.

Advanced Materials Production Will Support Multiple Industries

HS Hyosung produces advanced materials serving several industries, including mobility, energy, aerospace, and defense. Its product portfolio includes tire cord, a material used in tire construction, as well as other materials supporting transportation and industrial applications. The planned production base in San Luis Potosí is therefore connected to a broader materials business rather than a single automotive product category. By expanding manufacturing capacity in Mexico, the company intends to increase its ability to produce and supply advanced materials for customers across North America while also strengthening its broader global production network.

Mexico Operations Already Serve Automotive Customers

In North America, HS Hyosung already operates production activities in Mexico and the United States. Its regional products include tire cord, airbags, and automotive interior materials, which are supplied to General Motors, Goodyear, and other customers. The existing portfolio demonstrates the company’s established presence in automotive materials and its participation in regional supply chains. The planned expansion in San Luis Potosí would build on those activities by adding an advanced materials production base designed to support production and supply requirements across North American and global markets.

Investment Expansion Begins From 2027

The company’s plan calls for investment to increase gradually beginning in 2027, rather than establishing the full planned production footprint immediately. The San Luis Potosí project is expected to expand HS Hyosung’s manufacturing and supply capabilities as investment progresses. The focus on advanced materials also aligns the planned facility with the company’s existing businesses serving mobility, energy, aerospace, and defense applications. For customers, the additional production capacity is intended to strengthen regional supply capabilities, while the company will use the new base to support its North American operations and broader global market coverage.

Industry Impact & Outlook

The planned investment could strengthen Mexico’s role in HS Hyosung’s advanced materials manufacturing network and provide additional regional capacity for automotive materials such as tire cord, airbags, and interior components. Establishing production in San Luis Potosí also positions the company to support customers across North America from within the region, while maintaining links to global markets. The project’s gradual investment schedule means its manufacturing impact will develop over time beginning in 2027. Automotive and other industrial customers may benefit from expanded supply capabilities as the production base develops, while HS Hyosung’s existing presence in Mexico and the United States provides a foundation for integrating the additional capacity into its regional operations.

Frequently Asked Questions

What is HS Hyosung planning in San Luis Potosí?
HS Hyosung plans to gradually expand investment from 2027 and establish an advanced materials production base in San Luis Potosí, Mexico. The project is intended to strengthen production and supply capabilities for North American and global markets. The company produces materials for mobility, energy, aerospace, and defense applications, including tire cord. Its North American operations also produce airbags and automotive interior materials for customers including General Motors and Goodyear. The planned facility would expand the company’s manufacturing footprint while supporting its existing regional supply activities and broader international production network.