South Korea-based Hankook Tire began construction on its new $800 million state-of-the-art tire manufacturing plant on 469-acres in Clarksville, Tennessee. The Tennessee Plant is Hankook Tire’s eighth global production base and its first United States based manufacturing facility, where it plans to create approximately 1,800 jobs.
Expected to begin operation in 2016, the plant will secure production capacity of 12 million tires, mostly for regional supplies in the North American market, according to company officials. “This will enable for a more efficient tire distribution in the market and will open more opportunities to strengthen the business engagement with the U.S.based automakers for original equipment tire supplies. Also, the additional production capacity from this plant will contribute to increase annual global production to over 100 million tires,” a company official explained.
“Today marks an important milestone in our 73-year history as a tire maker. The new Tennessee Plant will be a pivotal instrument to accommodate our growing business in the United States and also to propel a well-balanced global production portfolio,” said Mr. Seung Hwa Suh, Vice Chairman/CEO of Hankook Tire. “Combined with our advanced technological capability, the newest plant will create premium value and solidify our presence as a top-tier player in the global tire industry.”
“We want to congratulate Hankook Tire on breaking ground on its first U.S. manufacturing facility in Montgomery County,” Tennessee Governor Bill Haslam said. “Hankook’s announcement has not only made a major impact on Tennessee’s automotive sector, but will also boost the Clarksville area workforce as we continue our work to make Tennessee the No. 1 location in the Southeast for high quality jobs.”
Over the past decades, Hankook Tire has been cumulatively investing in the United States by establishing its American Regional Headquarters in 1981 and Akron Technical Center in 1992. Tennessee has been chosen as the ideal location for the company’s newest plant, providing an extensive transportation infrastructure, the company said.