Hankook Tire announced that its board of directors approved a $1.6 billion investment to expand its Tennessee Plant located in Clarksville, Tennessee.
The investment includes the previously planned Phase 2 expansion that will double the production capacity of Hankook’s passenger car and light truck (PC/LT) tires and adds a Phase 3 expansion with the company’s first U.S. production of Truck Bus and Radial (TBR) tires. The addition of the Phase 3 expansion project will bring 400 more jobs to the Clarksville area, for a total of 1,200 new jobs.
Hankook will double U.S. PC/LT production to 11 million units and enable the production of 1 million TBR tires annually. The expansion 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 (OE) partners.
“The investment in our Tennessee Plant further demonstrates Hankook’s growing presence in the U.S. and commitment to serving our customers,” said Sooil Lee, CEO of Hankook Tire & Technology and President of Hankook Tire America Corp. “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 fulfill customer demand more effectively. We are extremely proud to continue supporting the local economy by bringing 1,200 new jobs to the Clarksville area.”
Since Hankook’s state-of-the-art Tennessee Plant opened in October 2017, Hankook has produced 5.5 million tires annually for the North American market and generated 950 new jobs. The North American market accounted for more than 28 percent of total Hankook Tire sales in 2021.
“This production expansion is a vital step to our growth in the Medium Truck market, making Hankook one of only a few manufacturers producing TBR products in the U.S.,” said Rob Williams, Senior Vice President, North America Sales, Hankook Tire America Corp. “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.”
Hankook is expected to break ground on the new plant in early 2023, subject to definitive agreements, regulatory approvals and other conditions. Tire production at the new phases of the Plant will begin by Q4 2024 and reach full capacity by early 2026.
“Global brands like Hankook Tire choose to invest in Tennessee because of our strong business climate, skilled workforce and central location,” said Tennessee Governor, Bill Lee. “I thank Hankook for its continued investment in our state and for creating 400 new manufacturing jobs for Tennesseans in Montgomery County.”
Operating eight production sites in five countries around the world including the United States, Hungary, Indonesia, China and Korea, Hankook Tire currently has an annual global production capacity of about 100 million units. Through the expansion of the Tennessee Plant, the company is expected to increase its production capacity to about 106.5 million units in total.
