Hansae Co., a major South Korean original design manufacturer (ODM) in the fashion industry, announced the acquisition of U.S.-based textile manufacturer Texollini on Tuesday. The move is part of Hansae’s broader effort to establish a vertically integrated production system in Latin America. Founded in 1989, Texollini is known for its expertise in synthetic textiles, offering a full range of services from fabric production to dyeing, printing, finishing, design, and research and development. It counts global brands like New Balance, Champion, Patagonia, and Alo Yoga among its clients.

By acquiring Texollini, Hansae expects to bolster its production capabilities, particularly in activewear, a higher-margin product category. As it primarily specializes in knitwear Hansae will now have access to Texollini’s advanced synthetic fiber technology. This acquisition is expected to generate significant synergies with Hansae’s large-scale factory in Guatemala, which is currently under construction.

Hansae has already committed up to $300 million in investment to its Guatemala plant by 2026, aiming to complete a fully vertically integrated production system that includes everything from dyeing to sewing and manufacturing. The addition of Texollini’s automated production lines, which can operate 24/7 and handle the entire process from fabric production to dyeing and printing, is seen as a key element in enhancing this integration. Texollini produces over 1 million pounds of fabric and dyes 1.2 million yards each month across 4,000 different fabric types.

By leveraging Texollini’s synthetic fiber expertise, Hansae plans to expand its portfolio into categories such as activewear, lingerie, and swimwear, with a particular focus on higher-value products like activewear to boost profitability.