HS Hyosung is set to establish an advanced materials production base in Mexico as part of efforts to strengthen its local manufacturing capabilities and expand its presence in the North American market.
HS Hyosung said it signed a memorandum of understanding with the government of the Mexican state of San Luis Potosi on Sept. 25 local time during the Korea-Mexico Business Forum held in Mexico City.
Under the agreement, HS Hyosung will begin phased investments in San Luis Potosi from 2027 to establish a local production facility for advanced materials. The company plans to use the new base to enhance its supply capabilities for customers in North America and other global markets.
San Luis Potosi is one of Mexico’s major manufacturing hubs, with an established automotive industry and supply network. HS Hyosung plans to leverage the region’s industrial infrastructure to strengthen its local supply chain and respond more efficiently to demand from North American customers.
HS Hyosung produces a range of advanced materials, including tire cord, a global No. 1 product, as well as materials for mobility, energy, aerospace and defense applications.
The company already operates production facilities in Mexico and the United States, manufacturing tire cord, airbags and automotive interior materials for customers in North America, including General Motors.
The Mexican investment is expected to expand HS Hyosung’s existing North American production network beyond automotive materials. The company is also developing new applications for advanced materials in areas such as energy, aerospace and defense.
At CAMX 2026 in Atlanta, HS Hyosung showcased its ultra-high-strength carbon fiber TANSOME®, along with composite materials for drones and high-pressure vessels for satellites, highlighting its efforts to expand its advanced materials business in North America.
Sung Nak-yang, CEO of HS Hyosung Advanced Materials, said the investment is aimed at developing Mexico into a strategic base connecting North America with global markets, rather than simply a manufacturing site.
“We will continue to strengthen the local supply chain in Mexico and contribute to the development of the local industrial ecosystem through job creation,” he said.
HS Hyosung plans to gradually expand its production and supply infrastructure in Mexico while diversifying its advanced materials portfolio and strengthening its response to demand from North American customers.
