SEOUL, South Korea — Hankook Tire & Technology Co. Ltd. is planning to idle production for two weeks at plants in the U.S. and Hungary, starting March 30, in order to protect the health and safety of its employees and in response to market demand impacted by COVID-19 pandemic.
The move in the U.S. will affect 1,200 hourly workers at the plant in Clarksville, Tenn., which Hankook opened in 2017, and approximately 1,800 at the 13-year-old plant in Racalmas, Hungary. The plants are scheduled to be closed through April 7.
Hankook said its six U.S. warehouses, including one located at the Clarksville plant, will continue to operate, supported by Hankook plants in Asia, if necessary, by providing production assistance, shipment and supply of raw materials.
Hankook does not anticipate any interruption in sales.
Hankook said its plants in China, Indonesia and South Korea are not affected.
Hankook Tire recently disclosed plans to buy back stock and increase its dividend.