Samil Spinning Co., a textile company based in South Korea, has agreed to buy US-based Buhler Quality Yarns, the Korea Trade Investment Promotion Agency (Kotra) said. Buhler Quality Yarns, an American subsidiary of Switzerland’s 205-year-old yarn manufacturer Hermann Buhler, is known for its strong customer base and high quality products.
The company’s decision to acquire 100 per cent stake in the US peer came after America backed out from Trans-Pacific Partnership (TPP), in which all parties agreed to eliminate and reduce tariffs.
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Samil was originally considering to acquire a production facility at Vietnam, as it had expected that the current 17.5 per cent tariff imposed on textiles and garments produced in the South East Asian country would be lowered under the TPP. However, it has now decided to buy the US-based firm to tackle the recent threats that ensued from the protectionist stance of Donald Trump. Several textile and garment businesses in South Korea, which have entered Vietnam, are also compelled to find substitute markets like the EU.
The acquisition is expected to allow Samil Spinning to avoid high tariffs on its products in America. The Free Trade Agreement (FTA) between US and Korea is currently in effect; however, the US allows free of duty to only apparels using US-produced yarn textiles. “The acquisition is helpful for local apparel makers attempting to enter the American market as well, because they can now source US-made yarn from the Korean-American company,” said Choi Dong-chul, Project Manager for Global Mergers and Acquisitions from Kotra.
Bharat Tex Special Report 2026 
