Hankook to improve brand positioning through its US plant.
Hankook Tire will have its first U.S. plant up and running by the end of the year at a total cost of $800 million as the South Korean company seeks to expand its Asia-centered supply network to North America, boosting brand strength & market share in the process.
The plant, which will be constructed in the state of Tennessee, will have an annual output capacity of 11 million tyres, Hankook said in an announcement Tuesday. The company’s seven existing factories, in South Korea, China & two other countries, have a combined production capacity of 114 million tyres. That will grow 9% with the addition of the new plant.
With automakers building production facilities in North America, such as a new Kia Motors plant in Mexico, Hankook looks to raise its competitive advantage by manufacturing locally.