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Biz News Korea(Eng)
S. Korea’s textile company Samil Spinning to buy U.S.-based Buhler Quality Yarns
- Collected
- 2017.03.24
- Distributed
- 2017.03.28
- Source
- Go Direct
![Martin Kagi, CEO of Hermann Buhler and Ro Hyun-ho, vice president of South Korea`s Samil Spinning poses for pictures after signing a contract to buy Buhler Group`s U.S. affiliate Buhler Quality Yarns. [Source: Kotra]](http://file.mk.co.kr/meet/neds/2017/03/image_readtop_2017_198353_14902544692820732.jpg)
Martin Kagi, CEO of Hermann Buhler and Ro Hyun-ho, vice president of South Korea`s Samil Spinning poses for pictures after signing a contract to buy Buhler Group`s U.S. affiliate Buhler Quality Yarns. [Source: Kotra]
The company’s decision to acquire a 100 percent stake in the U.S. peer came after Washington stepped back from the broad international agreement involving 12 countries, the so-called Trans-Pacific Partnership (TPP), in which all parties agree to eliminate and reduce tariffs.
Samil Spinning was initially mulling over acquiring a production facility in Vietnam as it had expected that the current 17.5 percent tariff imposed to textiles and garment produced in the South East Asian country would be lowered under the TPP, Kotra said. However, it has decided to buy the U.S.-based firm amid growing protectionism on the trade front under the Donald Trump administration. Many Korean textile and garment businesses that have made forays into Vietnam are also forced to seek alternative markets like the EU.
The acquisition is expected to allow Samil Spinning to avoid high tariffs on its products in the U.S. The U.S.-Korea free trade agreement is currently in effect, but the U.S. allows free of duty to only apparel using U.S.-produced yarn textiles.
Established in 1983, Samil Spinning is a mid-sized cotton spinning company with annual sales of 93 billion won ($82.9 million) last year. Buhler Quality Yarns, an American subsidiary of Switzerland’s 205-year-old yarn maker Hermann Buhler, is known for its strong customer base and high quality products with recording $27 million in sales in 2015.
By Moon Ji-woong
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