By 2018, Hankook Tire hopes to be the 5th largest tire manufacturer worldwide. The tiremaker has also set a goal to become a Tier 1 premium brand company as well as grow from $6.8 billion in 2013 to $14.3 billion in 2020.

“We won’t get there unless you help us and we help you,” Shawn Denlein, Hankook Tire America Corp.’s senior vice president of sales, told those in attendance at its annual Partners Day in Jamaica last week.

These goals as well as future plans were outlined to roughly 100 dealers, distributors and media who attended the event.  Hankook also expanded on some of its plans during an interview with Tire Review after the group meeting.

One of the key ways the currently 7th ranked tiremaker hopes to increase its position worldwide is through increased production.

“If you don’t have the tires, you won’t get to the volume you need to be that large,” Denlein said. “The goal from the production side is build plants in the right places, and have those plants service the domestic markets as much as possible.“

Other components of Hankook’s growth strategy include continuing brand awareness and increasing its share of OE fitments. The tiremaker is also focusing on enhancing its tire technology.

In line with its increased production plans, Hankook announced in October 2013 plans for a North American plant in Tennessee.

Currently North America makes up 19% of Hankook’s global business. In addition to better servicing the North American dealer, the new facility will reinforce the fact that North America is an important market for Hankook, Denlein said.

The plant, in Clarksville, Tenn., is on schedule with the ground breaking set to happen the second half of 2014, said Byeong Jin Lee, president of Hankook Tire America Corp.

“Now we can claim the Hankook brand is truly and international brand and also now made for America,” Lee said.

Once construction begins, it should take roughly 18 months to complete, with tire production to begin in 2016, he said.  The tiremaker, which is investing $800 million at the facility, expects to have an initial annual capacity of 6 million tires at the plant that will increase to roughly 11 million after the second phase is completed.

“Our plants are very nimble and capable of producing.  Some plants can only produce light truck and have limitations and some of the older plants have lots of limitations when it comes to large size diameter,” Denlein said. “We’re able to create that mix. We’re able to have a plant that can have a real rich mix to meet the needs specifically in North America,”

In addition to the U.S. market, the tiremaker is looking to increase its capacity at plants in other markets as well as build additional factories. Hankook is exploring possibly building plants in Russia and India, Denlein said.

Another way Hankook is looking to better position itself within the global market is through R&D. The tiremaker dedicates roughly 5% of its profits to its research annually as well as employs more than 1,000 individuals in R&D, Denlein said.

The advantage to investing more in R&D is landing more OE fitments.  The tiremaker went from providing very few OE fitments in 1998 to being the 5th largest OE fitment supplier in 2013, Denlein noted.

“Take for example some of our competitors where they may be on the average of 3% some of those competitors do not have the share of a count in OE and to gain those types of fitments of premium brands you have to have the best R&D,” he said.

A large investment in research also allows Hankook to deliver consumers a better product.

“As we move forward and you have these products coming from Tier 4 or 5 companies in the maker, after the first go around consumers are going to realize, ‘Wow I paid less money, but I didn’t get what I wanted to get out of the product,” he said. “I think that other piece is on the replacement side, our R&D shows the quality of the product is there.”

Another piece of Hankook’s success is brand awareness. Part of the tiremaker’s brand awareness includes digital marketing, TV spots, billboards, sponsorship and experiential events.

In 2014, the Hankook will be focusing on more TV spots in prominent settings around baseball playoffs as well as preseason football, Denlein said.

Additionally, Hankook will be researching and developing a U.S. specific television commercial with hopes of airing in 2015, he said. The tiremaker’s current “Be One with It” commercials were developed for use globally.

Another major focus for Hankook’s brand awareness in 2014 will be its partnership within the MLB. The tiremaker currently has signs behind home plate of 25 of the 28 MLB teams. This year, Hankook will also have at least four permanent outfield signs in stadiums, including the Pittsburg Pirates and Detroit Tigers, among others.

Also during its partners meeting Hankook touched on the importance of its dealers. Denlein said in North America roughly 77% of Hankook’s business comes through independent tire dealers, so their success is important to the company.

“We want to be the person that provides the solutions. We want to grow up we want you to grow up,” he said.

One way Hankook helps its dealers is through its associate program One. The tiremaker is pleased with the way the program has been running, but is continuing to look for ways to improve the program.

The tiremaker said most changes would be behind the scenes with the focus on the ease of doing business.

Other ways Hankook tries to support its dealers is through consumer promotions. Next year Hankook has two consumer promotions schedules and is evaluating pursuing a winter promotion as well, Denlein said.

Hankook is also looking to provide more regional promotions and utilizing its MLB connection on a regional basis, he noted.

Hankook is also rolling out four new tires in 2014 – Ventus V12 evo2, the Ventus V2 concept 2, Ventus evo2 and Dynapro HP2.  The tiremaker first introduced the tires at SEMA in November 2013, but showcased them again to dealers at its Partners Day.

“I believe our tire is the salesman,” Lee said. “Because we have good, quality products, people use Hankook once and because they love the quality of our products, they will come back to us.”

The Ventus V12 evo2 and Ventus V2 concept2 are currently being launched and the Ventus evo2 and Dynapro HP2 will launch in August.

The Ventus V12 evo2 new UHP summer passenger tire. It will be available in 62 sizes covering 16- through 21-inch wheel diameters.

The Ventus V2 concept2 HP all-season passenger tire.  It will be available in 22 sizes ranging from 15- through 18-inch wheel diameters.

The UHP Ventus S1 evo2 SUV is designed for SUVs and CUVs. It will be come in 13 sizes covering many popular 19-, 20- and 21-inch fitments.

The new Dynapro HP2, is also designed for SUVs and CUVs. It’s a HP all-season tire that wil come in 36 sizes covering 16- through 20-inch fitments.

“In our industry people try to take that segment and use one tire. What happens is you have these cross over CUV and SUV types like the Q5 that isn’t traditionally towards a highway tire more toward what we would consider more of a UHP light truck product.  We feel since we split the segment were helping the retail counterperson when the car comes in to give them a tire that’s a true fit for the vehicle,” Denlein said.

Moving into the future Hankook is looking to expand its 17-inch and larger product offerings, as well.