According to Hankook Tire CEO Choong Hwan Cho, the global sales target is based on production from Korean plants (Daejon, Geumsan), China (Jiaxing, Jiangsu) plants and partially on the new Hungary (Dunaujvaros) plant, which will begin production in mid-2007.

The Korea operation expects a 13.8% increase from total sales of $2.5 billion compared to last year. Hankook also targets a 65.1% increase in operating profit of $301 million and a 40.8% increase from recurring profit.
 
In 2006, Korean operations sales grew approximately 10.36% from 2005 to $2.2 billion, while operating profit decreased 18.9 % to $183 million.  Preliminary figures put the recurring profit at $237 million, down 14.25 %, and net profit at $175 million, down 16.3%.

“High export prices and increased supply of OE tires to overseas automakers bolstered sales, despite an unfavorable operating environment,” said Hyun Shick Cho, executive vice president and chief marketing officer.
 
Operating profit in 2006 declined as raw material costs surged. In 2006, the average purchase price of natural rubber was $1,930 per ton, up 52 % from a year earlier, according to Hankook. The price of carbon black and synthetic rubber went up 27 % and 6 %, respectively, the tiremaker said.
 
“Uncertainty looms over the supply and price of raw materials, such as natural rubber, in the year ahead,” added Cho Hyun Shick, executive vice president. “However, we will overcome the challenging business environment by penetrating overseas markets with active marketing, expanding sales of OE tires to premium automakers, and innovating management.”