LAS VEGAS (Dec. 19, 2016) — Hankook Tire America Corp. is counting on the start of production next year at its Clarksville, Tenn., plant to help energize efforts to expand its OE presence in North America, especially with some of the Japanese transplant factories, executives told Tire Business in an interview at the recent Specialty Equipment Market Association (SEMA) Show in Las Vegas.
Noting that Hankook has been supplying a number of premium OE car makers for a long time, Jae Bum Park, senior vice president, said, "Next year we are going to beef up our supply to Japanese makers,…so our performance in the OE sector will be transformed to [the] replacement market...."
Hankook expects the Clarksville plant to be up and running by the first quarter, Mr. Park said, and ramp up steadily by 2018 to the rated capacity of 16,000 units a day.
The $580 million factory's output is expected to generate approximately $500 million in annual sales revenue at full capacity, the company said in its second quarter financial statement, and provide Hankook the resources to boost its OE sales, especially in the premium sector.
- This article appears in the Dec. 19 print edition of Tire Business.
Hankook already supplies Ford Motor Co., General Motors Co., Honda North America Inc. and Hyundai/Kia Automotive in North America.
Hankook reported $1.4 billion in sales in North America in 2015, and revenue through the first three quarters of 2016 was running 28 percent ahead of that, despite a 10-percent drop in the third quarter, according to the parent company's quarterly earnings report.