Hankook & Co. has approved a $1.6 billion investment to expand its consumer tire plant in Clarksville, Tenn. The infusion will double the facility's production capacity and will eventually enable it to build commercial truck and bus tires.
The investment will double the plant's passenger and light truck tire production to 11 million units and will enable production of one million TBR tires annually.
It also "brings Hankook's total investment in the area to $2.2 billion and will enable the company to further provide tire dealers and consumers with high-quality tires and industry-leading services to meet the demands of the American market, while supporting existing and future original equipment partners," according to company officials.
Since opening in October 2017, the Clarksville plant has produced 5.5 million tires for the North American market annually.
The North American market accounts for more than 28% of Hankook's total global sales.
Hankook expects to break ground on the new plant in early 2023. Tire production "at the new phases of the plant" will begin by the fourth quarter of 2024 and "reach full capacity by early 2026."
"The investment in our Tennessee plant further demonstrates Hankook's growing presence in the U.S. and commitment to serving our customers," says Sooil Lee, CEO of Hankook Tire & Technology and president of Hankook's North American business.
"Through a focus on sustainable construction and innovative manufacturing, the new phase of our Tennessee plant will provide an effective local-to-local supply chain to more effectively fulfill customer demand. Additionally, we are extremely proud to continue to support the local economy by bringing 1,200 new jobs to the Clarksville area."
"This production expansion is a vital step to our growth in the medium truck market," says Rob Williams, senior vice president, North America sales, Hankook. "As a result, we can better meet the needs of both our growing dealer base and the fleets that serve the North American shipping lanes."
