Hankook Tire investing $1.6 billion in Clarksville USA factory

Hankook Tire is set to invest US$1.6 billion in the expansion of its Clarksville, Tennessee tyre factory. The investment includes the previously announced Phase 2 expansion, which will increase Hankook’s capacity to produce passenger car and light truck (PC/LT) tyres twofold as well as a Phase 3 expansion, which will enable the company to begin producing truck bus and radial (TBR) tyres in the United States. The company estimates that the addition of the Phase 3 expansion project will create an additional 400 jobs in the Clarksville region, for a total of 1,200 new positions.

Hankook is expected to break ground on the new plant in early 2023. Tyre production at the new phases of the plant will begin by the fourth quarter of 2024 and reach full capacity by early 2026

The investment will double US passenger car/light truck tyre production to 11 million units a year and enable the production of 1 million TBR tyres annually. The expansion also brings Hankook’s total investment in the area to US$2.2 billion and will enable the company to further provide tyre dealers and consumers with high-quality tyres and industry-leading services to meet the demands of the American market, while supporting existing and future original equipment (OE) partners.

“The investment in our Tennessee Plant further demonstrates Hankook’s growing presence in the U.S. and commitment to serving our customers,” said Lee Soo-il, CEO of Hankook Tire & Technology and president of Hankook Tire America Corp. “Through a focus on sustainable construction and innovative manufacturing, the new phase of our Tennessee Plant will provide an effective local-to-local supply chain to more effectively fulfil customer demand. Additionally, we are extremely proud to continue to support the local economy by bringing 1,200 new jobs to the Clarksville area.”

Hankook’s Tennessee Plant opened in October 2017 and has produced 5.5 million tyres each year mainly for the North American market, generating 950 jobs. According to local news reports, the North American market accounted for more than 28 per cent of Hankook Tire’s total sales in 2021.