Adding a source of high-value recycled fibers to the textile industry.

Century Yarn's new factory in Tay Ninh aims to increase productivity, optimize the production of recycled yarn, and expand into high-cost specialty yarn lines, expected to further supplement and diversify the yarn supply in Vietnam.

Mr. Dang Trieu Hoa, Chairman of the Board of Directors of Century Fiber, at the inauguration ceremony of the Unitex factory in Tay Ninh on January 23 - Photo: STK

On January 23rd in Tay Ninh, Century Fiber Joint Stock Company (STK) inaugurated the Unitex factory with a total investment of 125 million USD.

In the context of a global market with stringent origin requirements, the new yarn factory is positioned by the company as a crucial link for flexible production, while shifting the focus to recycled yarns and high-value-added technical yarns.

With new tariff policies from the US, Vietnamese synthetic fibers are facing the requirement to prove their origin when exporting to major markets.

Under new US tariff policies and rules of origin requirements in new-generation free trade agreements, Vietnamese synthetic fiber products increasingly need to clearly demonstrate the origin of their raw materials when exported.

For markets under the Comprehensive and Progressive Trans- Pacific Partnership (CPTPP), the textile and garment industry must meet the "from yarn onward" rules of origin.

Speaking to Tuoi Tre Online , Mr. Dang Trieu Hoa, Chairman of the Board of Directors of Century Yarn, said that in this context, the company is playing an important role in the domestic yarn supply chain, fulfilling orders requiring Vietnamese origin.

According to Vietcap's 2024 report, STK is one of seven high-quality synthetic fiber manufacturers in Vietnam, specializing in polyester filament fibers used in high-end textiles, sportswear, footwear, accessories, and automotive interiors.

STK's yarn supply also helps Vietnamese textile manufacturers meet the requirement that textile products need more than 50% of their raw materials sourced domestically, as 64% of STK's revenue comes from domestic textile producers.

Many of STK's customers are direct fabric suppliers for major fashion brands such as Adidas, Nike, Puma, Decathlon, and Uniqlo.

Along with origin requirements, demand for recycled yarn is also increasing as international brands push for low-emission criteria and circular economy. By 2025, STK's recycled yarn revenue is projected to increase by 25.2% year-on-year, accounting for approximately 49.8% of total revenue.

With the constant fluctuations in market demand for yarn, STK representatives said that the new factory also helps the company be more flexible in structuring production according to the demand for each type of yarn at different times, thereby optimizing costs and enhancing price competitiveness.

Besides conventional recycled fibers, the company is actively developing recycled fiber lines with technical features such as UV protection, cooling, anti-static, quick-drying, and moisture-wicking properties – higher-value fiber segments.

To expand its market share, STK accepts lower profit margins for conventional recycled yarn, compensating for this with these premium lines.

Unitex is STK's third factory, alongside its two existing facilities in Cu Chi (Ho Chi Minh City) and Trang Bang Industrial Park (Tay Ninh). The factory is designed with a total capacity of 60,000 tons of yarn per year, with the first phase having a capacity of 36,000 tons/year and commencing operations in Q4 2025.

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Source: https://tuoitre.vn/bo-sung-them-nguon-soi-tai-che-gia-tri-cao-cho-nganh-det-may-20260123214317694.htm