Hankook Tire has become one of the top tire manufacturers in the world. The company was founded in South Korea in 1941, and has expanded to over 180 countries globally. Today, Hankook is the 7th largest tire company in the world by revenue.
Hankook has major manufacturing facilities located across South Korea, China, Hungary, Indonesia, Tennessee USA, and is constructing a new plant in Clarksville, Tennessee scheduled to open in 2022. With this global footprint, Hankook has established itself as a major player in the global tire market, providing original equipment and replacement tires worldwide.
The company places a strong emphasis on research and development to create innovative tire technology. Hankook continues to grow and evolve, with a focus on high-quality manufacturing and environmental sustainability initiatives.
In this article, we’ll take a deeper look at where are Hankook tires made around the world, and how the company approaches tire manufacturing globally.
Background on Hankook Tire
Hankook Tire was founded in 1941 and is headquartered in Seoul, South Korea. It is the 7th largest tire company in the world, producing a full line of radial tires for passenger cars, SUVs, trucks, buses, and commercial vehicles.
Hankook operates 8 domestic plants and 14 overseas plants in countries including China, Hungary, Indonesia, and the United States. The company has approximately 22,000 employees worldwide and reported global sales of $6.2 billion in 2021.
Hankook sells its tires globally through independent dealers, affiliates, and Hankook branded stores. The company has stated a mission to become a “Global Leader in Technology” with a focus on innovation, quality, service and price competitiveness.
Hankook’s First Plant in South Korea
Hankook Tire opened its first manufacturing facility in Daejeon, South Korea in 1968. This original plant had an initial production capacity of just 350,000 tires per year. As the first Hankook plant, it holds special significance as the site where the company began tire production using its own technology and manufacturing process.
Located in central South Korea, the Daejeon plant enabled Hankook to start supplying tires domestically. The plant helped establish Hankook’s position in the Korean tire market before expanding abroad. It gave the company an initial production base from which it was able to grow and develop its technological capabilities.
Over the years, the Daejeon facility has undergone several expansions and upgrades. Today, it serves as Hankook’s central R&D center and headquarters. The plant has also increased capacity dramatically, now producing approximately 5.5 million tires annually. It stands as a symbol of Hankook’s heritage and continued commitment to innovation from its home base in South Korea.
Expansion into China
Hankook began manufacturing tires in China in 1992 when it opened its first Chinese plant in Jiangsu. This initial facility had an annual production capacity of 1.2 million tires.
Over the next decade, Hankook rapidly expanded manufacturing in China to serve growing demand in the region. In 2002, a second plant opened in Jiaxing, adding 4.5 million tires of annual capacity. Just two years later in 2004, Hankook opened its third Chinese facility located in Chongqing.
With three plants in operation, Hankook’s annual production capacity in China grew to about 11 million tires by the mid 2000s. This positioned China as a key manufacturing hub for supplying tires to local automakers and the Asia Pacific market.
Continued growth led Hankook to open its fourth and largest Chinese plant in 2014 in Jiaxing. This added an additional 15 million tires of annual capacity. Today with over 25 million units of production capacity, China remains vital to Hankook’s global manufacturing footprint and strategy. The country serves as both a major regional supply base and an important technology development center.
New Facilities in Europe
Hankook has made major investments in building new production facilities in Europe to serve the European market. In 2007, Hankook opened its first European plant in Dunaujvaros, Hungary. This $380 million facility gave Hankook an annual capacity of 5.5 million tires in Hungary.
The Hungary facility produces mainly passenger car radial tires to meet demand in Europe. Its strategic location allows Hankook to efficiently distribute tires to anywhere in Europe.
In 2018, Hankook opened its second plant in Europe, located in Uherske Hradiste in the Czech Republic. This $750 million facility added an annual capacity of 5.5 million tires.
The Czech plant produces high-end ultra-high performance tires using the latest technology and automation. This helps Hankook meet rising demand for premium tires in Europe and strengthen its technology leadership.
With two major plants in Europe, Hankook now has the production capacity and proximity to efficiently provide tires to European automakers and distribution partners. The company is well-positioned to continue gaining market share in the important EU market.
Further Global Expansion
In addition to its plants in Asia and Europe, Hankook Tire has continued expanding production globally to be closer to key markets.
Some highlights include:
- In 2011, Hankook opened its first U.S. production plant in Clarksville, Tennessee. With 1.5 million tires produced annually, the plant serves growing demand in the North American market.
- In 2012, Hankook debuted its Hungarian facility, providing additional capacity to meet European demand. Located near Budapest, the plant produces up to 5.5 million tires per year.
- Hankook added an Indonesian plant in 2014, strategically located near key natural rubber sources. With a capacity of 5 million tires annually, the facility provides supply chain efficiency.
- In 2016, Hankook announced plans for its first facility in India. Expected to open in 2020, the plant will produce 5 million tires annually for both original equipment and replacement tire markets.
- In 2017, Hankook began construction on its first U.S. production facility focused on truck and bus radial tires, located in Tennessee.
The continued expansion enables Hankook to improve supply chain efficiency, increase production capacity, and meet rising demand in major markets around the world. Localized production also allows Hankook to tailor products and services to regional customer needs.
An Emphasis on Technology
Hankook has focused on incorporating innovative technology into its manufacturing facilities and processes across the globe. Some examples include:
- The company opened its Digital Innovation Lab in 2019, dedicated to developing digital solutions for tire production like AI quality inspection. This allows Hankook to detect defects early and optimize quality control.
- Hankook utilizes automation technology like robotic arms for tire component assembly at facilities in South Korea. This improves precision and efficiency.
- Sensors throughout Hankook’s production lines collect real-time data to monitor all process parameters. The company leverages big data analytics to identify improvements.
- Hankook is testing technologies like augmented reality to assist workers in the factory with troubleshooting and maintenance procedures. This improves safety and productivity.
- Facilities feature advanced tire testing equipment to evaluate performance under diverse conditions and simulate years of wear. This allows Hankook to perfect tire designs.
- Hankook has implemented energy-efficient equipment and utilities optimization across plants to reduce environmental impact. This includes heat recovery systems and renewable energy.
The company prides itself on large investments in next-generation technology to make its global manufacturing operations cutting-edge and environmentally sustainable. This focus allows Hankook to maximize quality, output, and working conditions.
Environmental Sustainability
Hankook places a strong emphasis on implementing eco-friendly manufacturing processes across its global facilities. The company has taken numerous steps to reduce its environmental impact:
- Installing solar panels at plants to generate renewable electricity. Their facility in Hungary now gets 30% of its power from on-site solar energy.
- Using recycled rainwater in the manufacturing process. Rainwater is collected and reused for cooling equipment.
- Operating an eco-friendly paint shop that dramatically cuts VOC emissions. Hankook uses water-based paints and a dry scrubber system to reduce air pollution.
- Reducing waste by reusing scrapped tire rubber in various applications. The recycled rubber is even used to make the floors for some facilities.
- Running an environmental management system certified to the ISO 14001 standard at all plants. This system tracks resource use and waste to promote continuous improvement.
- Switching to LED lighting and high-efficiency equipment to lower electricity consumption. Motion sensors also reduce energy use.
Through changes like these, Hankook aims to minimize the environmental footprint of tire production while upholding quality and efficiency. The company’s sustainable practices have earned recognition from organizations like the Carbon Disclosure Project. As manufacturing tech advances, Hankook plans to implement even more eco-friendly solutions.
The Future of Hankook Manufacturing
Hankook Tire has ambitious plans to continue expanding and upgrading its manufacturing facilities around the world. The company sees increasing global demand for its tires, especially in emerging markets, and it aims to boost production capacity to meet this demand.
Some of Hankook’s key investments and initiatives planned for the near future include:
- Building an additional tire plant in Indonesia. This new facility will add approximately 6 million tires per year of capacity when complete.
- Further expanding the company’s facility in Chongqing, China. Hankook is investing over $350 million to upgrade this plant and install new production lines. This will add nearly 5 million tires per year of capacity.
- Beginning construction on its first manufacturing facility in the United States. The new plant in Tennessee is scheduled to open in 2022. It will have the capacity to produce up to 5.5 million tires annually.
- Continuing to grow capacity at European facilities in Hungary and the Czech Republic through new lines and equipment.
- Upgrading its existing factories across the globe with the latest automation, quality control, and efficiency enhancing technologies. This includes all plants in Korea, China, Indonesia, and Hungary.
- Investing in more research and development to create innovative new tire products and manufacturing processes. The company spends over 6% of sales annually on R&D.
With these initiatives, Hankook Tire expects to increase its global production capacity to over 120 million tires by 2024. That’s up significantly compared to 93 million tires in 2018. The investments highlight Hankook’s commitment to meeting customer demand as it continues expanding worldwide. The company is focused on balancing growth and efficiency while upholding its high quality standards.
Conclusion
Hankook Tire has expanded its manufacturing footprint across the globe over the past several decades. After starting with a single plant in South Korea, Hankook now operates facilities in China, Hungary, Indonesia, Tennessee, and more.
This global manufacturing approach allows Hankook to efficiently produce tires and distribute them to markets worldwide. Localized plants in Europe, Asia, and North America put Hankook tires closer to customers in major markets. Modern, automated facilities also enable Hankook to manufacture high-tech tires incorporating the latest materials and design innovations.
In summary, Hankook’s network of global production plants is a key strategic asset. By expanding manufacturing beyond Korea, Hankook can flexibly supply tires tailored to regional demands. The company seems poised to continue growing its international production capacity going forward.
Hankook’s localized manufacturing and technical investments have helped transform it from a Korean tire company into a leading global brand. With state-of-the-art factories worldwide, Hankook can manufacture high-quality tires and deliver them to customers wherever they may be.
