Hankook Tire announced on May 26 it will purchase 1.5 million of its outstanding shares at a cost of 20.7 billion won (£10 million) in order to boost its stock price. The buyback begins on May 30 and will continue until August 29, and the amount of shares purchased will be the equivalent to one per cent of all outstanding stock.
Sinotrans Limited, a leading Chinese logistics provider, will offer logistics services to Hankook in China, the two companies have announced. Sinotrans started logistics services for tyres in 2001 when it provided services for Michelin Group and announced in November 2007 that it would provide third-party logistics for the tyre giant in China and the Asia Pacific Region.
Hankook Tire America Corp. is raising prices by up to 8 per cent on its full line of passenger, high performance and light truck tyres and up to 5 per cent on its medium duty truck tyres. The amount of the increase will vary by product line and/or size, and will take effect July 1.
The increase in prices reflects the industry’s sharply rising costs for raw materials and energy consumed in manufacturing and distribution, Hankook said.
2008 is shaping up to be a yet another year of growth for Hankook. The South Korean manufacturer arrived at the CV show armed with several new products, indicating it is indeed taking its plans to increase market share in the commercial sector very seriously. During the three days at the Birmingham NEC visitors had the opportunity to inspect no less than four brand new truck tyres, products Hankook says kick off a series of tyre launches planned for the remainder of the year.
An all-new low profile premium steer axle tyre, the size 295/80R22.5 AH22, headed the list of new products displayed by Hankook. Company representatives report that this tyre, which also serves as an all position fitment for coach and bus fleets, delivers excellent performance in both wet and dry conditions. In terms of the tyre’s durability Hankook points to its tread depth of 16mm as one of a number of features making the AH22 a genuinely robust choice of tyre for heavy vehicles that cover considerable distances. The tyre is also available in size 315/80R22.5.
Hankook Tire has chosen the Auto Beijing 2008 show for the global launch of ‘Kontrol Technology’ – the company’s research and development philosophy. It is the South Korean manufacturer’s aim that, through Kontrol Technology, understanding the technology that goes into Hankook’s tyres will become easier for customers and dealer to understand. Kontrol Technology also represents a set of proprietary innovations developed by Hankook to ensure – in the company’s own words – controlled driving experiences. The result of Kontrol Technology, says Hankook, will be products that provide a range of driving benefits across four areas customers identify as vital when choosing quality tyres: performance; safety; comfort; and a tyre’s impact on the environment.
At Hankook’s Kontrol Technology information booth at Auto Beijing the tyremaker also premiered a new environmental tyre – the enfren – a product that has completed the Kontrol Technology development cycle and is due for its commercial debut in Korea during early summer. The tyre combines a number of technologies including a silica compound and an efficient structural design, and production facility technologies that enhance the tyre’s rolling resistance have been utilised in its production. According to test results from the Korea Automotive Technology Institute, the enfren improves fuel economy by 3 per cent and reduces CO2 emissions by 4 kg/km. The manufacturer says the tyre has the potential to save consumers on average of approximately 34.5 litres of petrol per year in comparison to a current generation Hankook tyre.
The largest manufacturer of tyres in China by market share, Hankook Tire, is contemplating price increases in this market to offset the costs of oil and raw materials. CEO of the company holding a 25 per cent market share in China, Choi Jin-wook, made comments to this effect on April 21. Choi also said the company expected its sales volume to increase in China by about 20 per cent this year, a stronger rate than the anticipated industry wide 15 per cent growth.
The Reuters news service has quoted Choi as saying “the company has not decided on the details. We are considering a price hike, although nothing has been decided.” The Reuters report also indicated that Hankook was looking for other ways to cut costs, such as through higher productivity.
The Ford Motor Company has held its 10th annual World Excellence Awards, at which the automotive manufacturer acknowledged 47 global suppliers for their efforts towards helping Ford develop higher quality and lower cost vehicles. According to Ford, the awards also recognise suppliers for embracing Ford’s vision of profitable growth, teamwork and a better world, and the list of companies so recognised includes several that fall under the ‘tyres and accessories’ umbrella.
First distributed in 1998, the World Excellence Awards were jointly developed by Ford and its suppliers. There are three levels of awards: Gold, Silver and Recognition of Achievement. The gold and silver awards are presented to Ford’s top production and non-production suppliers that consistently demonstrate superior quality, delivery and cost performance. The third award, Recognition of Achievement, is given to suppliers that improve customer satisfaction.
Hankook Tire America has opened a new distribution centre, this one located in Aurora, Illinois. It is Hankook’s sixth US distribution centre. “The addition of a Chicago distribution location allows us to better serve the Chicago metro area,” said J.R. Nottolini, Hankook’s Midwest regional director. “Will call is now possible in this region, allowing dealers to have product in their hands the next day, providing them with a wider variety of just-in-time inventory at their disposal.”
The new facility, said Hankook, will service retailers throughout the Midwest, which had previously been handled by the company’s centres in Tennessee and New Jersey. (Tire Review/Akron)
A new Hankook TV commercial featuring heroes, sports coupes and “furious” car chases is part of a new global TV marketing campaign currently being enacted by Hankook Tire. The campaign is currently rolling out simultaneously across Europe, China and the US.
The 20-second clip stands out with its 3D animation, offering TV audiences a “never-seen-before” action-packed perspective in a tyre commercial. The brand-new Hankook Ventus V12 Evo takes centre stage in the story, whose impressive appearance is experienced close-up by viewers. The effects created by award-winning creative studio Shilo TV is designed to captivate viewers.
Hankook is reported to have plans for doubling capacity at its facility in Hungary. The BBJ, an English-language Hungarian business weekly, published comments made by Hankook Tire Magyarország PR manager Katalin Roy, who said that the tyremaker intends to boost daily capacity from 15,000 to 31,000 tyres by 2010.
The expansion will involve increasing the area of the Dunaújváros facility, south of Budapest, by 40 per cent, and 300 new staff will be employed. Hankook has already applied for the necessary environmental licenses for the expansion, said Roy. The cost of the investment was not disclosed, however at the time of the plant’s opening Hankook said it would spend 500 million euros in investments at the base by 2010. Work on expanding the plant will apparently begin this June and be completed within a year.
Leading German motoring magazine Auto Motor und Sport has rated Hankook’s Ventus Prime as its top tyre in a recent magazine summer tyre test (issue 7/2008). “Excellent handling characteristics and superior braking ability on both wet and dry surfaces” steered it to first place for the automotive premium segment in a comparative test against eight tyres. The test examined tyres in dimensions 235/55 R17 W/Y from manufacturers like Continental, Bridgestone, Goodyear and Michelin on a Mercedes-Benz S-Class. Only the Ventus Prime was awarded the coveted rating “exceptionally recommended,” taking the top spot in four out of 10 categories: Handling and braking on wet surface, traction and lateral stability.
Mexico, Russia and Vietnam are reportedly under consideration as potential sites for Hankook Tire’s third facility to be built outside of Korea. A final decision is most likely to be made in the second half of the year, however it appears that Vietnam may be the strongest contender in the running.
Last November chief executive Suh Seung-Hwa said Hankook was considering building another production facility overseas after it completed its Hungarian facility, the next stage of which should be finished in 2010.
Hankook Tyre UK has appointed Richard Ettey to the team as commercial sales manager South West England, with a view to expanding its commercial vehicle tyre sales operation. Ettey joined the team at the start of February and brings with him 40 years of experience in senior sales roles throughout the UK with his previous employer Goodyear Dunlop.
He has been tasked with developing the Hankook commercial tyre brand in the south west of England and increasing sales in the region, which also includes Wales and the West Midlands. Hankook UK commercial manager Barrie Horrocks said the appointment would reinforce the brand’s presence in the south west.
Hankook Tire Co. has announced plans to raise its prices 5 per cent from this month. Announcing the move, company executives refused to rule out any further increases. According to the Asis Pulse news agency, Hankook chief executive Heo Ki-yeol told journalists the company will consider increasing the prices again “if raw material prices reach an unmanageable level.”
Hankook Tire Europe has elected Hee-Se Ahn (48) as Vice-President of Sales & Marketing for the tyre manufacturer’s European regional headquarters, located in Neu-Isenburg near Frankfurt/Germany. He succeeds Byeong-Jin Lee who has moved to a new management position at the group’s headquarters in Seoul/Korea. Mr Ahn’s responsibilities will include successfully integrating the company’s new 500 million euro Hungarian production plant into its future European marketing strategy.
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