In recent years, South Korea-based manufacturer Hansae Co., Ltd. has made verticality a key investment area.
Originally focused solely on garment production, the global group has acquired textile mills in strategic locations to support swifter speed to market for its customers. This plan has played out in Vietnam through the acquisition of fabric manufacturer Color & Touch (C&T) in 2013. Specializing in knitting as well as dyeing—with advanced color matching capabilities—C&T produces textiles using cotton, man-made cellulosic fibers (MMCF) like rayon and modal, synthetics and more. With a 2024 fiscal year revenue of approximately $130 million, C&T’s current customer list includes major retailers such as Walmart, Target, Gap, Old Navy, Carhartt, Kohl’s, VF Corp. and SPARC Group.
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Now, C&T is expanding its operations with the opening of a third facility in Vietnam this month. This marks a significant milestone, following its initial factory established in 2006 and the second location launched in 2015. The new facility will increase C&T’s total daily dyeing capacity by 150,000 kilograms.
Although Vietnam is just one of seven countries in which Hansae operates factories, its fabric and textile plants there represent over half of its total production output. Hansae’s first Vietnam-based garment factory opened in 2001, and two more followed in 2005 and 2010. This existing strong footprint in Vietnam was the impetus for Hansae’s merger with C&T, a move that expanded its operations there to fabric manufacturing and heightened the level of verticalization within its supply chain. Since then, C&T has been the key enabler for Hansae’s fabric-to-garment manufacturing capacity in Vietnam. This C&T opening will further accelerate stable accessibility of key raw materials required for the group’s garment manufacturers in Vietnam and across Asia.
Responsible, Regional Production
One of the key considerations for leading global fashion manufacturers such as Hansae is supply chain accountability. Despite garment manufacturing being highly diversified, the industry at large has been heavily reliant on fabric and components from China, which has created vulnerabilities. The flaws in this singular sourcing strategy showed during the pandemic, as operations and transportation from China stalled early in the outbreak, leaving many downstream factories without materials.
Hansae and C&T have sought to avoid exposure to China fabric by opting for fabrics and raw materials from other country origins as much as possible, only sourcing minimal polyester from the nation. Post Covid, the benefits of a varied textile sourcing footprint are clearer to the industry, and C&T’s Vietnamese materials base supports this industry effort. The addition of more C&T capacity will also enable Hansae to get closer to its aim of using no materials from China.
The other boon of a nearby and vertical fabric supply is traceability. By owning more of the process and cutting down on travel, Hansae is able to have improved visibility into the origins of materials.
Hansae has built its third C&T factory with cutting-edge solutions for both efficiency and sustainability. Powered entirely on biomass, the facility is also equipped with a rainwater capture and reserve system that improves its water footprint. Additionally, the factory will employ eco-friendly dyeing technology. Adding differentiation from the rest of C&T, this plant will use European machinery, whereas the first and second C&T factories are outfitted with Asian machines.
In total, the daily capacity across C&T’s three facilities will be 170,000 kilograms for knitting, 150,000 kilograms for dyeing, 100,000 pieces for garment dyeing and 40,000 yards for printing.
“Factory three is one of the largest and most advanced facilities in the region, designed to meet the highest standards of efficiency and environmental sustainability,” said Julie Lee, CEO of C&T. “This expansion marks a significant milestone in our journey of growth, innovation and sustainability. It reflects our dedication to delivering superior products and services while contributing to a greener, more sustainable future.”
Moreover, C&T is looking further afield than just Vietnam in its diversification efforts. In addition to this expansion in Asia, C&T plans to open a factory in Guatemala in 2026, which will support Hansae’s Western Hemisphere garment production footprint. Hansae has already focused heavily on the Central American nation since the opening of its first Guatemalan factory in 2005, eyeing its proximity to the important U.S. market. Most recently, the group has been working to establish a sustainable, vertical complex in Michatoya Pacifico Industrial Park. The addition of C&T in Guatemala will advance Hansae’s nearshoring operations and enable it to make even quicker turns for its customers.
“Following the opening of the third factory in Vietnam, C&T’s expansion will now diverge into a new region in Central America,” said Lee. “Aligned with growing needs for nearshoring and Hansae’s strategic investment, C&T Guatemala will mark a new milestone of global fabric manufacturing as well as scaling up the impact on the region’s garment industry, too.”
Click here to learn more about Hansae.
