South Korean tyre maker Hankook Tire says that its board of directors has approved a US$1.6 billion investment to expand its Tennessee plant, located in Clarksville, Tenn. The investment includes the previously planned Phase 2 expansion that will double production capacity of Hankook’s passenger car and light truck (PC/LT) tyres, and adds a Phase 3 expansion with the company’s first US production of Truck Bus and Radial (TBR) tyres. 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 overall.
It is expected to break ground on the new plant in early 2023, subject to definitive agreements, regulatory approvals and other conditions. Tyre production at the new phases of the Plant will begin by Q4 2024, and reach full capacity by early 2026.
Hankook will double its US PC/LT production to 11 million units and enable production of 1 million TBR tyres annually. The expansion also brings Hankook’s total investment in the area to US$2.2 billion and will enable the company to further 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 more effectively fulfill customer demand.”
Since Hankook’s Tennessee plant opened in October 2017, it has produced 5.5 million tyres/year for the North American market and generated 950 jobs. The North American market accounted for more than 28% 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 US,” 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’s Tennessee plant is located off International Boulevard, in the southern portion of the Corporate Business Park.