Hankook Tire to Invest $1.6B in Tennessee Plant Expansion
Hankook Tire is making a $1.6 billion investment to expand its Tennessee manufacturing facility, located in Clarksville, Tennessee, the company announced.
The investment includes the previously planned Phase 2 expansion that will double production capacity of Hankook’s passenger car and light truck (PC/LT) tires, and adds a Phase 3 expansion with the company’s first U.S. production of Truck Bus and Radial (TBR) tires.
Hankook will double U.S. PC/LT production to 11 million units and enable production of 1 million TBR tires annually, the company said. The expansion also brings Hankook’s total investment in the area to $2.2B and will enable the company to further provide tire dealers and consumers with high-quality tires and industry-leading services to meet the demands of the American market, while supporting existing and future Original Equipment (OE) partners, the company said.
“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. Additionally, we are extremely proud to continue to support the local economy by bringing 1,200 new jobs to the Clarksville area.”
Since Hankook’s Tennessee Plant opened in October 2017, Hankook has produced 5.5 million tires annually for the North American market and generated 950 jobs, the company said. The North American market accounted for more than 28% of total Hankook Tire sales in 2021.
Hankook is expected to break ground on the new plant in early 2023, subject to definitive agreements, regulatory approvals and other conditions. Tire production at the new phases of the plant will begin by Q4 2024 and reach full capacity by early 2026.
