Han Media: South Korea's Taekwang Industry Withdraws from China after 20 Years
All Spandex Plants Cease Production
South Korea's Taekwang Industry has decided to completely stop the operations of its spandex production plants in China, and will fully withdraw from the Chinese market after entering it for 20 years.
On July 31, Taekwang Industry announced: "The board meeting held on the 30th approved the decision to cease the operations of its overseas subsidiary, Taekwang Chemical." In 2003, Taekwang Chemical was established in Changshu City, Jiangsu Province, China, and began commercial production of spandex from 2005. Although spandex is a high-value-added, functional fiber known as the "fiber semiconductor," the Chinese spandex market has been oversupplied in recent years, with fierce price competition, leading Taekwang Chemical into operational difficulties. The company has accumulated operating losses of 93.5 billion won (approximately RMB 480 million) over the past three years.
This month, Taekwang Industry will completely stop the operations of its production plant in China and plans to recover receivables by the end of the year, and lay off about 500 employees. Additionally, Taekwang Industry has decided to carry out a paid capital increase of 100 billion won (approximately RMB 500 million) to repay loans, among other things.
Regarding this, a Taekwang Industry representative said: "The decision to withdraw from the local factory in China is a measure taken to strengthen the competitiveness of its core business," and "the company will improve its operating efficiency and accelerate the exploration of new growth drivers based on this decision."
Source: Chosun Ilbo
Original article: https://www.toutiao.com/article/1839218379294794/
Statement: This article represents the personal views of the author.