Hyosung TNC’s BDO factory plan gets nod from Vietnam

(From left) Vietnam Vice Prime Minister Tran Hong Ha and Hyosung Vice Chairman Lee Sang-Woon attend a ‘Conference on implementation of master plan and investment promotion,’ held in Ba Ria-Vung Tau, Vietnam, on March 30, 2024. [Courtesy of Hyosung TNC ]

Hyosung TNC announced a substantial investment of 1 trillion won ($750 million) in Vietnam for a new bio-based butanediol (BDO) plant and aims to capture the eco-friendly materials market by creating a vertically integrated production system from raw materials to bio-spandex fibers.

The South Korean company received approval to invest in the Hyosung BDO project from the government of Ba Ria-Vung Tau Province in Vietnam on March 30th, 2024, it said on Wednesday. With this investment, Hyosung TNC plans to build a BDO production plant that will be able to produce 200,000 tons of BDO annually and aims to start producing 50,000 tons of bio-based BDO per year from the first half of 2026.

[Courtesy of Hyosung Group]

BDO is a chemical used in the production of polytetramethylene ether glycol (PTMG), a key ingredient for manufacturing spandex fibers. Its usage has recently expanded beyond PTMG to include various industries such as thermoplastic polyurethane (TPU) for car interiors, biodegradable polybutylene adipate terephthalate (PBAT), shoe soles, and industrial compounds.

Bio-based BDO is produced by fermenting sugars derived from sugarcane and corn and is a 100 percent renewable alternative to traditional fossil-based resources. Hyosung TNC expects this venture to significantly contribute to the expansion of the white biotechnology market.

This investment will help Hyosung TNC secure its position as the owner of the world’s largest bio-spandex factory in Vietnam. It will also be the first company in the world to achieve vertical integration in the bio-spandex production chain from raw materials to fibers. The bio-based BDO produced at the Ba Ria-Vung Tau factory will serve as the foundation for PTMG production at the nearby Dong Nai factory, which, in turn, will be used to manufacture bio-spandex in large quantities.