The Obama administration’s announcement that it is to impose tariffs of up to 35 per cent on Chinese-manufactured imports had a large impact on daily trading in the USA and Seoul, as Goodyear and Cooper shares bumped, and Hankook stock floundered.
Hankook executives are reportedly planning to build a new tyre production facility in either India or Malaysia. The news follows the announcement that Hankook is investing 230 million euros in increasing output at its Dunaujvaros, Hungary factory to 10 million tyres a year. Speaking to the Financial Times, Hankook executive Calvin Pak explained that the company’s next phase of expansion would be in south Asia “for example in India or Malaysia.” There was even talk of a North American plant “in the longer term.” Calvin Pak reportedly explained that Hankook’s competitive advantage over European manufacturers was that it had won quality accolades but remained “more affordable thanks to less of a brand premium.”
In South Korea, shares in Hankook Tire gained 1.84 per cent after the tyre manufacturer announced that it would invest 230 million euros ($334.9 million) by 2011 to expand its factory in Hungary.
Hankook Tire is to invest 230 million euros in its Hungary tyre production plant over the next 2 years in a bid to double production output from 5 to 10 million tyres a year by 2011. The latest injection of funds means the company has invested 550 million euros in the project. An official statement from the company said the latest move to ramp up production in Europe was a reflection of increasing demand there. Hankook’s decision to build a manufacturing facility in Hungary has been key to reducing customer delivery times from one month previously to just five days for the Europe-made Hankook tyres. However, the move also positions Hankook for increasing amounts of OE business, with the company openly bidding for the attention of “Audi-level” customers. Last year the company’s Hungary site began supplying OE customers in Europe, first Hyundai’s Czech factory (with tyres destined for the i30-compact car) then to Volkswagen Nutzfahrzeuge in Germany for the popular VW T5.
The latest SMMT figures reveal there was 6 per cent rise in new car registrations in August 2009, with the monthly total growing to 67,006 units. The second successive month of growth in new car registrations is widely attributed to the success of the government’s scrappage initiative, with August’s figures building on on a 2.4 per cent gain in July. As you might expect in light of the scrappage scheme, private purchases of small cars grew particularly strongly with this type of sale accounting for 35,694 (53.3 per cent) of August’s sales, compared to 23,717 (37.5 per cent). However, the recent growth disguises the fact that sales are still 15 per cent off the 78,800 total monthly market average between 1999 and 2008.
Ford and Vauxhall continued to dominate sales in August, however it is the surprise success of the Korean car manufacturers that has the potential to re-shape the UK car parc. And as these car manufacturers are almost exclusively supplied by Korean tyre makers, there is also likely to be a positive effect on Korean tyre sales in the UK.
In an August 18 news story, it was revealed that Hankook Tire Co. and some of its manufacturing plant managers were found guilty of failing to prevent a series of work-related deaths at Hankook facilities.
Hankook Team Farnbacher drivers Pierre Kaffer – this year’s class winner at the Le Mans 24 Hours – and Allan Simonsen in the GT2 class will be on the starting line for the 1000 kilometre race of the Le Mans Series, which is to be held at the Nürburgring on August 23. The Team will be driving a Ferrari F430 GT fitted with Hankook Ventus racing tyres.
Norwegian rally ace Andreas Mikkelsen has completed a successful test in the Hankook Opel Corsa ahead of the Barum Czech Rally Zlin, to be held later this month. The 20 year old headed to the UK for his first taste of the Hankook-liveried car that is contesting selected rallies this year ahead of a full assault on the Intercontinental Rally Challenge in 2010.
A provincial court in Korea has found factory chiefs and senior researchers of Hankook Tire guilty failing to prevent a series of work related deaths. The Korea Times reports that on August 14 the Daejeon District Court sentenced a factory chief, identified as Lee, 52, to eight months imprisonment, which was suspended for two years, and fined him three million won (£1.46 million). Another factory manager, Jung, 47, was given six months in prison, suspended for two years, plus a fine of two million won. The two men worked at Hankook’s Daejeon and Geumsan factories, where 14 workers died within 17 months.
Hankook Tire has appointed Todd Hershberger as its new vice president of sales and marketing in the USA.
The possibility of an extension to the US’s “cash for clunkers” auto rebate scheme has led to a bump in Asian stock prices for shares in Bridgestone, Hankook and others, according to Reuters reports. The US senate is mulling over a plan to offer 200 per cent of the original funding for its car sales booster scheme, since the billion dollar pot quickly evaporated. Purchasers can claim a rebate of up to $4,500 when they trade in old models for new, green alternatives.
This weekend a football extravaganza is being held in Germany to celebrate Audi’s 100th anniversary. On July 29 and 30 the Allianz Arena in Munich will host four of the world’s most highly regarded teams – FC Bayern München, AC Milan, Argentine champions and three-time Intercontinental Cup winners Boca Juniors, along with our very own Manchester United. Hankook Tire will also be present at this gathering of the football world’s elite, as one of the official sponsors.
“Naturally, it is a great honour for us as one of the original equipment suppliers to Audi to be able to get involved in this sporty highlight for Audi’s hundred-year anniversary,” commented Jin-Wook Choi, executive vice-president and COO of Hankook Tire in Europe.
Hankook Tire has reported strong second quarter sales of 1,257.3 billion won (£613.945 million; 715.822 million euros; 1.009 billion), up 10.3 per cent from 1,111.7 billion won (£545.693 million; 637.191 million euros; $893.855 million) in the second quarter of 2008. However, the company also recorded a 239.6 per cent increase in quarterly operating profits, which grew from 79.0 billion won to 144.8 billion won (£71.098 million; 82.944 million; $116.456 million) in the second quarters of 2008 and 2009 respectively.
The Hankook Tire China and Hungary operation saw record-high growth that led to a triple-digit percentage increase in its operating profit figures. In particular, the China operation reportedly recorded a 34.8 per cent sales increase quarter-on-quarter due to an increase in consumer demands and OE supplies, in line with the growing Chinese automotive industry. The Hungary operation showed a 44.6% sales increase year-on-year and resulted in operating profits following growth in the European market and cost efficient production.
Hankook Tire has is recalling a number of RA08 van tyre sizes in what the company describes as a “precautionary measure.” The sizes affected are: 185/75R16C, 205/75R16C and 215/75R16C produced at the company’s plant in Hungary between April 2008 and June 2009. According to the company, no other tyres produced in Hungary are subject to this action. Tyres supplied as OE to Ford’s Transit are said to similarly un-affected as they are produced at the company’s Deajon plant in South Korea.
Consumers who use the affected tyres are asked to immediately contact their local tyre dealer. Further consumer information will be offered at Hankook Tire Europe’s website (www.hankooktire-eu.com). Alternatively, consumers and the trade are being directed to contact their national representatives.
Hankook Tire Corp. has launched e3 (“E-Cubed”), a new radial truck tyre technology that combines improvements in energy, economy and environment. The technology is being integrated into Hankook’s newest line haul tyres, scheduled to be available in early 2010, and makes its first appearance at the Great West Truck Show this weekend. Hankook said the “e3 is designed to increase fuel economy, allow for improved fuel savings and wear performance, as well as minimize harmful carbon dioxide discharge.”
“Energy, economy and environment – the focus areas for e3 – continue to be key concerns in today’s commercial trucking industry,” said Brian Sheehey, director of commercial tires for Hankook Tire America Corp. “By categorizing a broad range of advanced technologies under e3, Hankook will be able to demonstrate how we deliver significant benefits in each category.” e3 falls under Hankook’s overall Kontrol Technology philosophy, which “focuses on a set of proprietary innovations, applied throughout research, development and production to ensure controlled driving experiences,” the company said. (Tire Review/Akron)
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