(Akron/Tire Review) Hankook has received final confirmation of an offer from the Polish Information and Foreign Investment Agency for the tiremaker to build a $500 million tire plant in Poland. Hankook could receive approximately $60 million in government aid and incentives, according to media reports.
(Akron/Tire Review) Hankook Tire Co.’s Optimo passenger tyre line made the list of South Korea’s “most powerful brands,” as determined by the Korea Management Association. According to a report by Chosun.com, the KMA surveyed the brand power of 2,576 brands in 164 industries to develop its list.
Media reports are continuing to circulate about exactly where in Eastern Europe Hankook will make its proposed $500 million investment. Numerous previous reports have stated that the company is interested in manufacturing in this region, and that the shortlist has narrowed to two countries (Poland and Slovakia). Now a Polish newspaper has added further information. A Rzeczpospolita report suggests that the Korean company is leaning towards Slovakia because of a governmental policy offering “flat tax” incentives to foreign investors.
Hankook Tire America Corp has signed a three-year agreement making Hankook the official sponsor of the Hankook US Touring Car Championship (USTCC) race series until the end of 2007. According to a Tire Review report, under the agreement, Hankook’s Ventus RSS Z211 R-Compound racing tyres will be the control tyres for the 2005-series racing event. In addition, the tyre company’s logo will be prominently displayed at each racing venue and on competitors’ vehicles.
“Hankook is dedicated to expanding our motorsports activities, both as a demonstration of our technology, as well as our brand-building marketing campaign,” said Choi. “We look forward to a productive relationship with the USTCC — and to excellent competition over the next three years,” commented J W Choi, president and CEO of Hankook.
Speculation around Hankook’s suggested move to Eastern Europe continues. For months now different sources have suggested that the South Korean company is planning a plant to supply regional carmakers like the Slovak unit of Kia Motors Corp.
Hankook has launched two 300 km/h UHP tyres into the UK market, the Ventus S1 evo tyre and the Ventus R-S2 track day tyre. “The UHP sector is expected to experience growth in the order of 60 per cent or more over the next five years and Hankook is poised to take advantage of this increase, having doubled its UHP tyre sales year-on-year for each of the past three years,” said UK sales manager, Ian Mayoll, explaining the motivation behind the releases.
As the UK tyre business was observing events at the Autosport/Aftermarket show, on the other side of the globe, the Tokyo Auto Salon was attracting some 300,000 spectators. Approximately 30,000 of these passed by the Hankook stand each day. According to Hankook, every Japanese car, wheel and tyre manufacturer was present.
Demonstrating its new corporate identity, the Korean company adopted the Hankook Emotion theme for its stand. The exhibition displayed 20 items including its range of Formula 3 racing tyres, Ventus UHP tyres, the low-noise XQ-Optimo and a number of concept products. The company also tried to charm its visitors with a racing Porsche on the company stand, with a magician providing further entertainment.
“The Hankook Tire booth was a fine chance to promote our new corporate identity program in Japan, one of the world’s most important markets for modified automobiles. We worked hard to make a venue that would give auto buffs from around the world a look at our world-class technology and tyres of the future,” commented a Hankook representative.
The South Korea monopolies commission has said it will fine Hankook Tire and Kumho Tire 4.1 billion won (£2.1 million), Korean newspapers have reported. The Fair Trade Commission (FTC) said the two companies had raised the prices of products shipped to their distributors after consulting each other, violating the country’s fair trade act.
The fines break down to 2.2 billion won for Hankook and 1.9 billion won for Kumho. The ruling comes after both companies raised their prices by between five and 10 per cent in May 2004, on the pretext of higher international rubber prices. The FTC is reported to have said both companies have admitted to the violations and provided evidence, entitling them to reduced fines under the government’s leniency program.
Hankook Tire Company, South Korea’s largest tyre manufacturer has reportedly broken the half-a-billion unit mark after 63 years of tyre production, the Asia Pulse news service is reporting. “Hankook Tire can produce 1.68 tyres in one second, 481 times more than it could when it was established in 1942,” the company said. “Once the ongoing expansions of production facilities both at home and abroad are completed, we will be able to break the one-billion-unit mark before 2010.” Hankook Tire has two manufacturing plants in South Korea and two plants in China. Hankook is the world’s ninth largest tyre manufacturer.
Hankook has released monthly financial results for November, which show that the company has experienced a 15.3 per cent increase in operating profit and an 8.4 per cent increase in sales volumes. In this period tyre sales, by volume, increased from 2.761 million to 2.992 million. The fact that revenues increased more than sales volumes suggests that the company sold more of its higher profit products, indicating an improved product mix.
Ford has started using Hankook’s Ventus Prime tyre on its new Ford Mondeo. The vehicles will use 205/55R16V and 205/55R16H sizes. The company reports that Ford will also fit its Focus and Fiesta models with Hankook tyres. Both models are made at the Ford’s factory in Valencia, Spain.
Hankook Tire has announced third quarter results, which were stronger than expected both in terms of income and product sales. The third quarter results show that Hankook beat Institutional Brokers Estimate System expectations by 20 per cent with net profits rising 30 per cent year-on-year to 46 billion South Korean won (£27.376 million). Quarter-on-quarter the same figures fell 2 per cent due seasonality. Following the same pattern, volume shipments rose 5 per cent year-on-year but fell 6 per cent quarter on quarter.
In addition, the third quarter saw the Korean company sell 50 per cent more UHP tyres than it did at the same time last year. This equates to 737,000 units in the last quarter. In total Hankook reports that sales are up 5.1 per cent. For Hankook, any news of increased sales is welcome as it will help offset rising raw material costs.
A number of news sources are reporting that Hankook Tire is considering sites in Eastern Europe for a possible new construction plant.
The Korean Maeil Business Newspaper identified Poland as one of the front-runners, for the $1 billion project. The claim that the report is supported by the company’s president, Cho Choong Hwana, adds credence to the story.
Meanwhile, the Warsaw Business Journal reports that it will take an estimated two to three years before construction of the plant is finished. The journal also suggests that Hyundai’s recent decision to open a plant in Slovakia could have been a motivating factor behind the move.
Hankook Tire has concluded a 3-year agreement to supply Ford Motor with 140,000 VR-rated (up to 240km/hr) K105s tyres annually. The tyres will be mounted on the Ford Mondeo, a high-quality family car, and will bear the Hankook Tire logo. The export price, to include replacement tyres, will total 22 million euros over three years.
The Michelin group has bought 10% stake in Gajah Tunggal. It is said that the Indonesian tyre manufacturer is going to produce associated brands for
Michelin but not the premium brand Michelin. The Michelin group has already signed joint ventures with Hankook (Korea) and Apollo Tyres (India).
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