Exactly one year after Hankook Tire Co. entered into an agreement with the Clarksville- Montgomery County, Tenn., government to build a tire production facility, government officials, Hankook executives, media, guests, and business partners gathered on Oct. 9 to break ground for Hankook’s first U.S.-based tire plant and eighth global production facility.
The 469-acre greenfield plant – set to be fully completed in 2018 – is located in the Southern automotive corridor, an area of the U.S. where automobile companies such as Volkswagen, BMW, Hyundai, Nissan and General Motors all have manufacturing facilities. Tennessee governor Bill Haslam was in attendance, and expressed his excitement, and relayed that the Volunteer State and the City of Clarksville were equally excited to add Hankook to the state’s roster of automotive companies.
“Tennessee is known as the state that makes things – from guitars to whiskey, ice cream to M&Ms, and now tires,” remarked Haslam.
Even though crews have spent the past few months clearing and preparing the plant area for construction, the groundbreaking ceremony was the official start of the process. Seung Hwa Suh, vice chairman and CEO of Hankook Tire Co., said that the plant will be completed in two phases.
Tires are expected to roll out of the facility starting in January 2016. Phase one will allow Hankook to produce 5.5 million units per year of passenger, performance and light truck/SUV tires. Phase two, set to begin in January 2017, will essentially double Hankook’s production capabilities, bringing the plant’s production to 11 million units per year by 2018. Suh said that the company will commit over $800 million over the course of construction to the project, and it will result in about 1,800 new jobs for Tennessee.
Positioned For Global Success
Hankook’s commitment to its U.S. business – Hankook Tire America Corp. – was a common theme throughout the ceremony, with Tennessee officials congratulating Hankook for bringing manufacturing jobs to the state. The plant will service the U.S. primarily, but will also help achieve its overall goal to become the fifth largest tiremaker globally.
“This plant will be instrumental in accommodating our growing business in the U.S. and also help us propel our global production portfolio,” said Suh.
Suh told Tire Review that improved serviceability is its primary reason for building in North America. With the new plant, “There will be no delays for American consumers that want high quality Hankook tires,” Suh said.
Hankook officials noted that Clarksville was chosen because of its central location to both the U.S. OE and replacement tire markets.
In addition to the plant, Suh noted that Hankook will be building a proving grounds on the site. Hankook execs did not confirm rumors of the tiremaker’s North American headquarters move to Tennessee, but it was noted that there is plenty of room on the site to expand.
Honoring History
A secondary theme at the ceremony was Hankook’s appreciation of America’s involvement in the Korean War. Hankook invited members of the Disabled American Veterans, specifically veterans from the Korean War, to attend the ceremony. The day before the groundbreaking, the tiremaker announced that it would sponsor DAV with a $50,000 contribution.
Recognizing their sacrifice and contributions to the nation of South Korea today, Suh thanked the Korean War veterans in attendance.
“I was born close to the Korean Demilitarized Zone, so I was reminded of the war every day,” said Suh. “I will always be thankful to the American heroes that stopped communists from spreading into South Korea. Without you, I wouldn’t be here today.”
