SEOUL, South Korea-Hankook Tire Manufacturing Co. Ltd. broke ground May 28 for a radial tire plant in Kumsan, South Korea, that will double its overall production capacity. The company plans to invest $1.61 billion in the facility over the next 10 years to build a flexible manufacturing system capable of turning out a wide variety of tire models in small lots.
Scheduled to begin production in 1996, the 3.4 million-sq.-ft. plant will have an initial capacity of 5 million radial passenger and truck/bus tires annually, increasing to 23 million tires per year by 2000 and eventually including light truck radials.
The project also includes a nearly mile-long proving ground.
VREDESTEIN TO OUTSOURCE TIRE LINE
MAASTRICHT, Netherlands-Vredestein N.V. plans to phase out direct production of industrial tires and contract an unnamed Malaysian company to make these units.
The industrial tire sector has been suffering of late from the influx of low-priced products from the Far East and Eastern Europe, the company said, and outsourcing its tires will allow Vredestein not only to continue in this business sector, but to broaden its product offering.