Hyosung TNC Invested $1 Billion in Bio-Based Production
The manufacturer is scaling bio-based spandex production in Vietnam to offset volatile petrochemical feedstock costs.
Updated on Oct. 5, 2026 in Manufacturing
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Hyosung TNC has launched a $1 billion manufacturing facility in Vietnam to produce butanediol from sugar cane. The initiative aims to stabilize supply chains impacted by a 60 percent surge in petrochemical feedstock costs for virgin synthetic materials.
Why it matters
Operators facing fluctuating oil prices and decarbonization mandates are increasingly turning to bio-based alternatives to secure supply. This shift allows manufacturers to mitigate the volatility of traditional synthetic markets while meeting corporate climate targets.
Hyosung TNC has invested $1 billion in its new Vietnam plant, which serves its global network of 10,000 mills. While 30 to 40 suppliers are currently leading the adoption of bio-based spandex, the firm is working to overcome minimum order quantity barriers for smaller brands.
The players
Hyosung TNC
A major global textile manufacturer known for its production of spandex and other synthetic fibers.
Czarnikow
A global sugar trader and supply chain services provider partnering with Hyosung for bio-feedstock.
Textile Genesis
A technology provider specializing in blockchain-based supply chain traceability for the apparel industry.
The details
To manage the transition, Hyosung uses a blockchain-based traceability platform provided by Textile Genesis to verify the sustainability credentials of its Regen product lines. The company also aggregates demand from multiple smaller brands to help them clear minimum order requirements for bio-based materials. This strategy helps insulate clients from the 60 percent increase in costs associated with virgin petrochemical feedstocks.
Timeline
7-10 years ago, brands moved to redirect material suppliers toward independent mills.
October 2026, Hyosung TNC representatives discussed these fiber innovations at Sourcing Journal.
Market Landscape
This move reflects a broader pivot in manufacturing toward meeting the industry-wide decarbonization mandates currently adopted by major apparel brands. It marks a departure from traditional reliance on virgin petrochemicals, which have seen a 60 percent price increase.
Operators using synthetic textiles should audit their current fiber sourcing to account for potential price volatility in the petrochemical market. Consider consolidating demand with other regional businesses to meet minimum order thresholds for sustainable, bio-based alternatives.
The takeaway
The adoption of bio-based materials provides a necessary hedge against volatile commodity prices for synthetic inputs. Watch the adoption rates of the 30 to 40 leading suppliers to determine if these materials are becoming the new standard for small-to-mid-sized operations.
Further reading
For more on the operational shifts in the sector, see our coverage of Manufacturing.
Source note: This article includes information reported by WWD.
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