Specializing in chemical and fiber materials, Huvis (CEO Shin, You Dong, 079980) sold a total of 54,000 tons of materials for hygiene supplies last year, exhibiting a 20% increase from 2019. This is caused by the increased demand for materials for hygiene supplies due to COVID-19.
The materials for hygiene supplies provided by Huvis include polyester staple fiber and spunbond, which are used to make non-woven fabric for diapers, sanitary pads, wet wipes, and masks. Huvis and a few other leading companies worldwide are at the forefront of the premium market. Due to the nature of these products, demand increases along with living standards, but last year the demand increased remarkably due to COVID-19.
In particular, the increased demand stood out even more in China, which accounts for 40% of Huvis’s sales in materials for hygiene supplies. Sales increased by almost 7 times from 3,000 tons in 2015 to 20,000 tons in 2020, with an average annual growth of 40%. The demand in China is growing due to increased income that followed their continuous economic growth as well as the change in perception of hygiene. In addition, forecasting the growth in the Chinese market and providing customized services with cooperation between the headquarters and Sichuan Huvis (subsidiary in China) also contributed to increased sales.
With the COVID-19 pandemic persisting and the social awareness of sanitation and hygiene improving overall, the demand for materials used in hygiene supplies will continue to grow. Accordingly, Huvis decided to extend the production line in August 2020 and is about to complete it in the first half of 2021. Once the extension is complete, the annual capacity will increase by more than 40% from 60,000 tons to 85,000 tons.
Product line extension is usually done in a cycle depending on the prediction of an increase in market demand. It is unusual to decide on an additional extension of more than 40% just two years after the extension in 2018. It seems that Huvis is laying the groundwork to dominate the rapidly growing market for hygiene supplies. Huvis is differentiating various materials such as biomass materials for hygiene supplies applying bio-PE by differentiating the materials for diapers.
“The demand for sanitation/materials for hygiene supplies will continue to increase even after the COVID-19 pandemic subsides, necessitating even higher quality materials,” stated Ho-Kyoung Lee, head of Huvis Green Fiber Division. “Our competitive edge is in establishing a premium line that has a high entry barrier for competitors with our differentiated technology.”
In Q3 2020, Huvis achieved a 368% increase in operating profit year-on-year compared to 2019, thanks to the boom in sales of materials for hygiene supplies and Sichuan Huvis’s sales increase.
▲ [Manufacturing process of Huvis staple fibers for hygiene supplies] Huvis is adhering to a clean process to prevent contamination of the fibers for hygiene supplies and maintain cleanliness throughout the process so that impurities or foreign substances do not pose a problem.