Hankook Tire Worldwide Co Ltd (KRX:000240), manufacturer of high quality performance radial tires announced its decision to invest $800 million to build a factory and create 1,800 new jobs in Clarksville, Tennessee.
The South Korean tire manufacturer said it plans to build a manufacturing facility on 469 acres, making it the largest tenant at the Clarksville Corporate Business Park. The company will start construction next year and will start producing high-performance tires by 2016.
Hankook brand continues to gain recognition in the U.S.
Seung Hwa Suh, vice chairman and CEO of Hankook Tire Worldwide Co Ltd (KRX:000240) said that establishing a manufacturing facility in the United States demonstrates the company’s commitment to delivering high quality products and services to the market. He added that the Hankook Tire Worldwide Co Ltd (KRX:000240) brand continues to gain recognition in the United States and the demand for its industry-leading tire products is growing.
Hankook Tire provides tires for General Motors
Hankook Tire Worldwide Co Ltd (KRX:000240) provides tires for General Motors Company (NYSE:GM), Ford Motor Company (NYSE:F), and Chrysler Group. Last year, the company imported 15 million tires in the United States. The new plant is expected to produce 11 million tires. In 2012, its U.S. revenue was $1.2 billion.
Governor Bill Haslam said, “I want to thank Hankook Tire for its substantial investment in Tenesse and for the 1,800 jobs they’ll create in Montgomery County. The auto sector is a key industry cluster where Tennessee has a distinct advantage with more than 900 auto suppliers and manufacturers, and today’s announcement reinforces our goal of becoming the No.1 location in the Southeast for high-quality jobs.”
In terms of employment, the automotive sector in Tennessee generated 12% of the state’s job creation since the recession. The sector also contributed one third of the manufacturing industry’s output since 2010. Tennessee’s automotive sector is composed of 910 companies with 113,148 workers and $31.5 billion in investments.
The Rubber Manufacturers Association projected that 288 million tires will be shipped in the United States for new cars, light trucks, and replacement and commercial markets this year. The estimate is 11% higher than the 259 million shipment in 2009.
The tire industry in the country was previously dominated by U.S. companies such as The Goodyear Tire & Rubber Company (NASDAQ:GT), Firestone Tire and Rubber Co., and General Tire and Rubber Co.