New Hankook Plant in Indonesia to Increase Tire Supply to North America
Hankook on Track To Become a Leading Global Tire Company
WAYNE, N.J. December 22, 2010- Hankook Tire, currently the seventh largest and one of the fastest growing tire companies in the world, unveiled a $353 million USD investment plan to build a new manufacturing plant in Bekasi, Indonesia today, devoting more than 50 percent of the plant's capacity to tires for the North American market.
This large-scale global production facility, to be located in Southeast Asia, will be a valuable addition for Hankook, enabling the company to achieve its goal of becoming a leading global tire company by 2014. Hankook expects its annual global production capability to reach 100 million units that same year.
"The addition of a plant in Indonesia will directly benefit the U.S. market," said Soo Il Lee, President of Hankook Tire America Corp. "Committing approximately 50 percent of the plant's expected capacity for passenger and light truck tires for North America will help us further meet the growing demand for our high-quality products in the U.S. and Canada."
Bekasi, located near Jakarta, was an ideal choice for Hankook's next plant, which will provide passenger and bus-and-truck tires to customers in the global markets. Hankook expects to break ground on the new manufacturing facility in the third quarter of 2011. The construction is expected to be complete by September 2014, rolling out 6 million tires a year. The plant location and design will allow Hankook the option of making additional investments in the facility to meet future needs.
The construction site will span over a 6.4 million square foot area and has convenient access to export logistics, as well as other production infrastructure resources such as electricity and workforce. These benefits will reduce costs and enhance profitability.
"Hankook Tire continues its efforts to develop new growth engines through an aggressive approach in raising investment efficiency and productivity," said Seung Hwa Suh, Vice Chairman and CEO. "We are glad to respond to our fast-growing reputation for quality around the globe by mobilizing our investment resources to build large-scale and top-notch production facilities."
Currently, Hankook Tire has five production facilities around the globe. In November, the company announced upcoming expansion to its Hungarian factory and plans to build an additional plant in China. The new plant in China will be located in Liang Jiang Xin Qu of Chongqing Municipal, which is southwest of China's biggest industrial and commercial center. It will break ground in the first quarter of 2011 and is expected to be completed by the end of 2015. Upon completion, this plant will produce approximately 11.5 million passenger car and truck-and-bus tires.
Another large-scale manufacturing plant in Indonesia further reinforces Hankook Tire's production capacity to compete with the best advantages on the world stage. By 2014, Hankook Tire expects to surpass the total annual production capacity of 100 million units and earn EBITDA of $1 billion USD.
Hankook's smart marketing practices combined with exceptional quality products have helped the brand continue to gain market share in the U.S. Hankook posted a 3rd quarter sales increase of 22 percent year-over-year for the U.S. market, attributable in large part to increased brand awareness and continuing positive reviews of the Hankook Ventus V12 evo.
Sales for Hankook's UHP segment were up 39 percent in the 3rd quarter versus the same period in 2009. Hankook also saw its original equipment sales rise again in the 3rd quarter, up 51 percent versus the same period last year.
About Hankook Tire Co., Ltd
Hankook Tire (Vice Chairman & CEO: Seung Hwa Suh) is the seventh largest and one of the fastest growing tire manufacturers in the world. It produces innovative, superior quality and high performance radial tires for passenger cars, 4x4s, SUVs, light trucks, campers, trucks, buses and motor sports. It invests approximately five percent of its revenue in research and development and develops cutting-edge technologies through its five global R&D Centers, meeting regional customer demands and enhancing customer satisfaction. Selling in over 180 countries around the world, the company has more than 14,000 employees. Approximately 70 percent of its revenue comes from growing overseas sales.
For more information, please visit Hankook Tire's global web site at global.hankooktire.com
About Hankook Tire America Corp.
Headquartered in Wayne, N.J., Hankook Tire America Corp. is a technology-focused, market-driven company that markets and distributes a complete line of high performance and ultra-high performance passenger tires, light truck, SUV tires, as well as medium truck and bus tires to more than 400 independent dealers through 3000+ retail sales locations in the United States and Canada.
For more information, please visit the Hankook website at www.hankooktireusa.comMedia Contacts: