Hyosung's operaing profit reaches record $2 bn last year

Hyosung Group’s annual operating profit exceeded two trillion won ($1.9 billion) for the first time since the company was founded in 1966.

Local media reports touted the record figure to Cho Hyun-joon, who has been the group chairman since 2017. This year’s projection for the group is also positive as the industry demand for aramid and carbon fiber remains strong.

Last year’s total sale from the holding company and the Hyosung Group’s four enterprises reached 21.3 trillion won; with the operating profit of 2.8 trillion won. 

Compared to the year prior, sales surged 42% and the operating profit a whopping 410%. 

Amid the supply bottleneck induced by the COVID-19 pandemic, Hyosung saw a surge in demand for its main products; namely spandex, polypropylene, and tire cord.

Hyosung TNC Corp. was the sole company that exceeded an annual operating profit of 1 trillion won. Last year’s sales reached 8.6 trillion won with an operating profit of 1.4 trillion won. Year-on-year, the figures rose 67% and 434%. 

The stellar performance is thanks to a rise in demand for creora and the resumption of operations at its plant in Turkey, which went through an expansion last August. 

Hyosung owns the world's largest spandex brand dubbed creora elastane. As creora boasts a high level of resistance against heat, the fabric maintains elasticity well. The unique quality makes it ideal for activewear, such as hiking clothes and leggings. Even though the raw material prices have increased, the surge in demand helped maintain high profitability. 

Nylon and polyester businesses also fared well, thanks to the company’s efforts on producing environmentally friendly alternatives to conventional products. 

Last year's sales of Hyosung Advanced Materials rose 50% to reach 3.6 trillion won while the operating profit skyrocketed 1178% to reach 437.3 billion won. The company’s annual profit recorded last year is the highest since 2018 when the group split into a holding company and four business units. 

The company forecasts its tire stiffener business to remain strong this year and the airbag department to see a rise in demand on the back of the increasing commercialization of self-driving cars. 

Hyosung Chemical's sales reached 2.5 trillion won with an operating profit of 148.5 billion won. Those figures are 35% and 144% increases from the year prior. 

Buoyed by the four enterprises’ improved performance, the group’s holding company Hyosung Corp. also enjoyed an operating profit of 640.6 billion won.

Write to Kyung-Min Kang at kkm1026@hankyung.com
Jee Abbey Lee edited this article.