Hankook Tire Invests in Tennessee Plant Growth – Gear
The funding will double manufacturing capability of Hankook’s passenger automobile and lightweight truck (PC/LT) tires, and provides a Section 3 growth with the corporate’s first U.S. manufacturing of truck and bus radial (TBR) tires.
Photograph: Hankook Tire
Hankook Tire introduced that its board of administrators permitted a $1.6 billion funding to increase its plant, situated in Clarksville, Tennessee. The funding contains the beforehand deliberate Section 2 growth that may double manufacturing capability of Hankook’s passenger automobile and lightweight truck (PC/LT) tires, and provides a Section 3 growth with the corporate’s first U.S. manufacturing of truck and bus radial (TBR) tires.
The addition of the Section 3 growth mission will convey 400 extra jobs to the Clarksville space, for a complete of 1,200 new jobs general.
Hankook will double U.S. PC/LT manufacturing to 11 million models and allow manufacturing of 1 million TBR tires yearly. The growth additionally brings Hankook’s complete funding within the space to $2.2 billion and can allow the corporate to additional present tire sellers and shoppers with high-quality tires and industry-leading providers to satisfy the calls for of the American market, whereas supporting current and future unique gear companions.
“The funding in our Tennessee plant additional demonstrates Hankook’s rising presence within the U.S. and dedication to serving our prospects,” mentioned Sooil Lee, CEO of Hankook Tire & Know-how and president of Hankook Tire America Corp. “By means of a deal with sustainable building and revolutionary manufacturing, the brand new section of our Tennessee Plant will present an efficient local-to-local provide chain to extra successfully fulfill buyer demand. Moreover, we’re extraordinarily proud to proceed to assist the native financial system by bringing 1,200 new jobs to the Clarksville space.”
Since Hankook’s Tennessee Plant opened in October 2017, Hankook has produced 5.5 million tires yearly for the North American market and generated 950 jobs. The North American market accounted for greater than 28% of complete Hankook Tire gross sales in 2021.
“This manufacturing growth is an important step to our progress within the medium truck market, making Hankook considered one of just a few producers producing TBR merchandise within the U.S.,” mentioned Rob Williams, senior vice chairman of North America gross sales for Hankook Tire America. “Because of this, we are able to higher meet the wants of each our rising vendor base and the fleets that serve the North American delivery lanes.”
Hankook is predicted to interrupt floor on the brand new plant in early 2023, topic to definitive agreements, regulatory approvals and different circumstances. Tire manufacturing on the new phases of the plant will start by the fourth quarter of 2024, and attain full capability by early 2026.
“International manufacturers like Hankook Tire select to put money into Tennessee due to our robust enterprise local weather, expert workforce and central location,” mentioned Tennessee Governor Invoice Lee. “I thank Hankook for its continued funding in our state and for creating 400 new manufacturing jobs for Tennesseans in Montgomery County.”
Hankook’s Tennessee Plant is situated off Worldwide Boulevard, within the southern portion of the Company Enterprise Park.
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