Tiron Tire sees ‘unexpected' spike in specialty segment

COLLEGE PARK, Ga. — The COVID-19 pandemic has caused a boom in demand for specialty tires, and by association, a boom in business for specialty tire importer/distributor Tiron Tires and Wheels USA Inc.

"So far so good," Jack Kim, head of corporation at Tiron USA, said. "Our industry, especially ag tires for compact tractors, is booming, ironically, due to the pandemic."

Mr. Kim attributes the increase in demand to the fact more people are pursuing outdoor projects, a view echoed by specialty tire maker Carlstar Group L.L.C. in recent Tire Business reporting (Sept. 28 edition).

• This article appears in the Nov. 9 print edition of Tire Business.

College Park-based Tiron Tires is a subsidiary of South Korean off-the-road (OTR) and commercial tire maker Hung-A Co. Ltd.

"People have more and more extra time to spend in their backyard, have more time to do those things and build up something," Mr. Kim said. "The pandemic created more of a market."

Mr. Kim said Tiron started to see demand jump in April, and that trend continues today.

"It was an unexpected spike, especially for our OE (original equipment) customers," he said.

Around 70% to 80% of the company's U.S. sales are in the OE market, Mr. Kim said. Demand spiked so quickly that OE manufacturers were having trouble keeping up.

"We are still fighting that," he said, adding that the company paid "a bit more" to import supplies in time to keep up with demand.

Tiron USA was established in 2016 as Hung-A USA. The company rebranded as Tiron Tires and Wheels USA Inc. in October to better establish the brand name in the U.S. market.

"We want to emphasize our brand name in the U.S., and increase popularity of the tire brand and also be more flexible to supply our tires," Mr. Kim said.

Tiron USA has one warehouse near Atlanta, and Mr. Kim said they hope to expand capacity "as per our sales growth."

He noted some products are exclusive to North America, adding there's a "bit of difference on types of tread cord, R3-R4 typically, for the American market."

In the U.S., Tiron is an OE supplier to Branson Tractor, Yanmar America, LS Tractor USA, TYM USA and KIOTI tractor.

Mr. Kim, who has been leading Tiron USA for a year, was brought on to expand the U.S. distribution network and improve awareness of the Tiron brand to a level more on par with that in South Korea, where Hung-A has been doing business for nearly 70 years.

He said because Hung-A is so well established in Korea and more competition is coming in from manufacturers in China and Thailand, the company sees the U.S. market as its best place to grow.

"We have been aggressively looking for long-term customers and growing our distributor network since 2016," Mr. Kim said.

He said they are pursuing new OEM and wholesale customers.

While producing for several segments, including OTR, TBR and industrial, the company is focusing on agriculture in the U.S., especially its compact tractor lineup, where they see "good prospects."

"And also, we are focusing on ag radial tires, where there is a value market we want to jump into," he said. In the Asian market, he said, the company competes strongly with, among others, Balkrishna Industries Ltd. (BKT) and Alliance Tire Co. Ltd., but in the U.S., Tiron is considered a "newcomer."

"Ag radial tires is a big market we want to focus on (in the U.S.)," he added. "We are well-known in the Asian market, and we know the compound and how to develop the tire. And we know the effort, time and investment required."

Mr. Kim said the company is confident because it has been in the tire industry for so long.

"After a year, dealers realize the value," he said. "We want to put in the best effort, and be the best."

Gyeongsangham-do, South Korea-based Hung-A was established in 1951, and first entered the U.S. market with bicycle tires in 1960.

Hung-A ranks No. 70 worldwide among tire producers based on 2019 sales of $147.3 million, according to the 2020 Tire Business Global Tire Report.

A major part of its business is tires for tractor, construction equipment and forklift manufacturers in South Korea, Japan and the U.S.

It manufactures tires at plants in South Korea and Indonesia. In addition to the Tiron brand, Hung-A also uses the Hung-A and Tinga brand names in other markets.