Hankook Tire invests USD 800 million for first US factory
Hankook Tire Co would be building its first factory in the US. The largest tire manufacturer in South Korea would be making a USD 800 million investment for a Tennessee plant. Hankook Tire told Bloomberg that the US plant would have an annual production capacity of 11 million tires. The plant would begin production in 2016.
The US plant would be the firm’s eighth global manufacturing base. Hankood already has plants in South Korea, China, Indonesia and Hungary. Hankook produces USD 94 million units each year. It currently has agreements to supply tires to carmakers Hyundai Motor Co, Kia Motors Corp, Bayerische Motoren Werke, Nissan Motor Co and Toyota Motor Corp.
Hankook Tire Chief Executive Officer Suh Seung Hwa said about its recent investment, “With this newest manufacturing facility in place, we will be able to supply the highest quality tire products that meet fast growing demands from consumers and automakers in the United States.” This year, Bloomberg said Hankook’s stocks had increased by 34%.