Differentiated polyester materials leader Huvis (CEO Shin, You Dong. 079980) announced that they signed an agreement on August 27 to establish Nantong Yongsheng HUVIS Fiber Advanced Materials Co., Ltd. a joint venture with Yongsheng Advanced Materials in China.
 
With this agreement, Huvis plans to develop a joint venture business by acquiring 30% of the shares of Nantong Yongsheng Fiber Advanced Materials Co., Ltd., a manufacturer specialized in differentiated filament yarn located in Nantong, China’s special economic zone in Jiangsu. Yongsheng Advanced Materials is China’s leading manufacturer of differentiated polyester fibers, and a partner that has co-managed the joint venture of Hangzhou Huvis Yongsheng Chemical Fiber Limited since 2004 with Huvis and continues to achieve high earnings rate every year.
 
The two companies will lead the differentiated fiber business in China with the joint venture, and primarily focus on stretch yarn and high functional fiber that are recently driving market growth. The joint venture will secure unrivaled leadership in the differentiated fiber market in China within a short period of time by combining the technological prowess of Huvis as the world’s No. 1 in differentiated long polyester fiber and the powerful local sales network of Yongsheng Advanced Materials.
 
The elastic and high functional fibers that will be the main focus of the joint venture are currently showing rapid growth of at least 15% every year in the Chinese market, and the Chinese government’s tightened regulations on environmental safety have brought more attention to environmentally friendly fiber, thereby accelerating the growth even further. Elastic fiber characterized by high elasticity and resilience leads the trend of comfortable clothing such as general attire and suits in addition to outdoor clothing. Low melting fiber, which is recently garnering attention, is an environmentally friendly product that can replace adhesives harmful for the human body, and is currently being used as filters and various environmentally friendly materials. Korean companies such as Huvis are still leading such high functional fiber business. This joint venture is expected to contribute to expanding the business further by effectively targeting the Chinese market that is the biggest in the world.
 
“We’re delighted to be expanding the joint venture with Yongsheng Advanced Materials, the leader of China’s differentiated fibers that is constantly achieving high profitability despite the fiber sector which has been sluggish of late,” said Huvis CEO Shin, You Dong. “The excellent market network and business capacity of the local Chinese company and the world’s top-class technological skills of Huvis will create a synergy effect and localize the Chinese market that is exhibiting solid growth, enabling our company to grow into a differentiated leader.”

[Overview of Yongsheng Advanced Materials]
Yongsheng Advanced Materials mainly (1) develops and manufactures differentiated polyester filament yarn and (2) dyes and processes differentiated polyester filament fabrics. Currently, it is investing vast resources in the differentiated materials sector, focusing on manufacturing, sales, dyeing and processing of differentiated products with high profitability.



▲Huvis CEO Shin, You Dong (on the right) and Yongsheng Advanced Materials Chairman Li Cheng (李诚) can be seen shaking hands after signing the joint venture agreement at the Grand New Century Hotel in Hangzhou, China on August 27.