Hankook Announces Plant No. 7
A US$353 million manufacturing facility in Bekasi, Indonesia will become the seventh factory operated by Hankook Tire and its fifth facility outside of South Korea. The tyre maker’s decision to invest in a factory in Indonesia was announced a month after Hankook stated its intention to build a plant in China’s Chongqing province. Adding a seventh plant to Hankook’s global production network will, the company says, enable annual global output to reach 100 million units by 2014 – a stated goal of Hankook Tire’s mid-term business target.
Hankook Tire says it searched out a location for a strategic production base that would have a decisive role in the company’s future growth. Bekasi, located near Jakarta, was selected as the “ideal choice.” The site expands over an area of approximately 60 hectares (600,000 square metres), and has convenient access to export logistics as well as to other production infrastructure resources including electricity and workforce. Groundbreaking at the new plant is expected to take place in the third quarter of 2011 and be completed by September 2014. Production in Bekasi will centre upon passenger and light truck tyres for global customers; initial annual capacity will be six million units, with additional plant investments a possibility.
“Hankook Tire continues its efforts to develop new growth engines through an aggressive approach in raising investment efficiency and productivity,” said Hankook Tire CEO Seung Hwa Suh. “The Indonesian plant is a major step in achieving our goals, implementing a new production base that accommodates tyre customer needs, expands sales, and strengthens Hankook Tire’s position. We are glad to respond to our fast-growing reputation for quality around the globe by mobilising our investment resources to build large-scale and top-notch production facilities.”