Hankook Evaluates Southeast Asian Sites for New Plant

Hankook Tire intends to build a new factory – its sixth overseas plant – somewhere in Southeast Asia. South Korea’s Yonhap news reports company CEO Suh Seung-hwa as stating on October 23 that Hankook may spend between US$250 million and $300 million building the new facility, which is expected to have an annual capacity of ten million units.

“We are now searching a site for our sixth plant in Southeast Asia, including Vietnam,” said Suh. A 2013 completion date for the project has been given, and its output will supplement increased production at other Hankook facilities. “Once the sixth plant begins production and plants in China and Hungary increase their production volumes, our total production volume will reach 100 million units a year after five years,” the CEO disclosed. Suh added that supply within the global tyre market was expected to be tight in 2013 or 2014, and if this expectation pans out the company may erect a seventh overseas plant.