Hyosung to establish tire cord plant in India

Seoul - HS Hyosung Advanced Materials (HAM) has announced plans to build its first polyester tire cord production plant in India in response to growing global demand for the product.

The Korean group is establishing a new subsidiary, HS Hyosung India Private Ltd, in Nagpur, in the western Indian state of Maharashtra, which Hyosung said is the country’s “top-ranked state by GDP and a key industrial hub.”

In a 12 Nov stock exchange filing, HAM said it intended to invest $30 million (€26 million) to build the facility to “proactively respond” to the growing global demand for polyester tire cords and to “diversify” its production bases.

The Korean manufacturer has secured a 230,000 sq.m. site in the Nagpur Industrial Complex in and plans to complete construction of the plant by 2027.

The facility will serve as “a major production hub for the Indian market", with future plans to expand into other key product lines such as airbag fabrics.

According to HAM, India is now the “world’s third-largest” automotive market and is experiencing rapid growth driven by government-led infrastructure expansion and logistics industry development.

“As a result, local sourcing needs for tire cords are steadily increasing,” said the Korean group.

Through this investment, it said, HAM plans to build “a stable supply chain and expand its market share in India, creating a foundation for agile response to fast-changing market dynamics.”

HAM maintains that it is “the world’s number 1 polyester tire cord manufacturer,” holding 50% of the global market share.

The group currently operates production facilities in Vietnam, China, and the US.