In This Article:
South Korea-based manufacturer Hansae Co., Ltd. is setting itself up to meet the fashion industry’s future demands with investments in Western Hemisphere production and sustainable innovation.
Hansae’s investor relations presentation on Oct. 16, 2024 in Ho Chi Minh City, Vietnam—hosted alongside its parent company Hansae Yes24 Holdings—delved into some of the manufacturer’s recent successes and its strategy moving forward. The company, which produces roughly 400 million garments annually in factories across seven countries, has achieved financial growth through strategic moves centered on better serving its large U.S. customer base and growing European and Japanese clientele.
More from Sourcing Journal
-
81% of Execs Say 'Strategic Reshoring' is Central to Their Sourcing Plans
-
Advance Denim, TENCEL™ and ROICA™ Unveil Environmentally-Conscious Capsule Collection
-
IDEAL Fastener Invests in Global Expansion for Localized Production and Speedier Service
As Hansae showcased at its IR event, one of its main focus areas in recent years has been growing its production footprint in the Americas. It recently established an El Salvador corporation, which is targeted to begin operations in the first quarter of 2025.
Hansae is also enhancing its capabilities through vertical acquisitions, openings and partnerships. Its yarn manufacturer EcoSpin in Guatemala is slated to start production in the fourth quarter of next year. Meanwhile, Hansae’s fabric manufacturer subsidiary C&T is opening its third factory in Vietnam, and operations are expected to start in Q1. The C&T facility is equipped with lower eco impact biomass boilers and high-tech machines from European makers. Also, Hansae is aiming to open its newest ‘Made in USA’ investment, a synthetic fiber mill, by the first quarter.
“Hansae will continue expanding strategic assets in both the Western and Eastern Hemispheres,” said Daymond Kim, vice chairman of Hansae Co., Ltd. “Sustainable and prolonged growth is the priority of such expansion.”
Another aspect of Hansae’s investments is sustainable production. Working toward the goal of carbon neutrality by 2050, the company has installed solar panels at its overseas factories, adopted biomass as a fuel source and is purchasing renewable energy certificates (RECs). Zooming in on two of its facilities, Hansae’s plants in Myanmar and Nicaragua are now both getting 23 percent of their energy consumption from eco-friendly sources.
At a product level, Hansae has linked up with fiber recycling firms to drive circular fashion systems forward, and it is increasing its use of organic materials. It has also reduced physical sampling through 3D tools, thereby shrinking material wastage.