South Korea’s two major textile companies, Hyosung Corp. and Kolon Industries Inc., are both expected to report better earnings for the second quarter thanks to their stellar performance in the textile industry.

Hyosung is expected to have earned 261.4 billion won ($229.7 million) in operating income during the April – June period, up 2.5 percent from a year ago, according to Hyundai Securities Co. Other industry observers, however, projected somewhat higher earnings than its estimate. The textile firm earlier raked in 222.3 billion won in operating profit in the first quarter, setting a fresh quarterly record high. Its sales are estimated at 3.2 trillion won, similar to last year’s performance.

Its 60-year-long rival Kolon Industries is likely to post 88.9 billion won in operating profit in the second quarter, up 16.3 percent on year. Hwang Yoo-sik, an analyst at NH Investment & Securities Co. said that all its four businesses – Industrial Materials, Electronic Materials, Chemical and Fashion – saw steady growth in sales and operating income.

The two textile giants’ big gains amid global slowdown are largely attributable to their strong footholds in the textile industry and cutting-edge technology development.

Hyosung’s cash cow spandex turned out constant revenue. The firm has grabbed the world’s largest market share in the spandex production market since 2010, pushing then-number one DuPont Co. out of the market. In the following year, it successfully developed carbon fiber for the first time in Korea. In 2013, it was the world’s first company to develop and commercialize “polyketon,” an eco-friendly, high-performance thermoplastic polymer, according to the company.

Kolon Industries is the world’s third producer of super fiber “aramid,” following DuPont and Teijin Aramid B.V. It started to mass-produce the high-strength para-aramid fibers in 2005. DuPont in 2009 filed a lawsuit against the Korean firm for stealing trade secrets which forced the company to suspend production in 2012. The firm resumed production after the case had been settled last year. Early this month, the company said it has developed a new colorless polymide (CPI) material – next-generation, flexible substrate for consumer devices – for the first time in the world. Their 10-year-long R&D paid off bringing about the new polymide with high thermal stability and flexibility.

By Yoon Jin-ho

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]