Hankook Set to Build Sixth Overseas Tyres Plant
By Oliver Hall
Hankook plans to build its sixth overseas tyres plant in Southeast Asia as part of its bid to become the fifth largest tyre manufacturer in the world.
The South Korean company is set to spend between US$250 million and $300 million on developing the new facility, which is expected to have an annual capacity of ten million units.
Suh Seung-hwa, Hankook chief executive, also revealed that construction will be completed by 2013.
He said: “We are now searching a site for our sixth plant in Southeast Asia, including Vietnam.”
Hankook, the world’s seventh-largest tyre maker by revenue and about 10 percent owned by French tyre manufacturer, Michelin, aims to increase its ranking by two notches by 2014, Suh said.
“Once the sixth plant begins production and plants in China and Hungary increase their production volumes, our total production volume will reach 100 million units a year after five years,” he said.
Currently, Hankook produces 78 million tyres annually at its plants.
Suh expected the global tyre market to see a tight supply in 2013 or 2014, and said there is a possibility that the company may build a seventh overseas plant if that happens.