Hankook opens Indonesia plant
The official opening for Hankook Tire’s new plant in Indonesia was held on 17 September. The facility in Lippo Cikarang, West Java – the South Korean tyre maker’s seventh global plant – was inaugurated in the presence of top Hankook executives, including Hankook Tire vice-chairman and CEO Seung Hwa Suh, Hankook Tire Worldwide president and CEO Hyun Shick Cho, and Hankook Tire CMO/CCMO Hyun Bum Cho. Also in attendance was Indonesian president, Susilo Bambang Yudhoyono and several other Indonesian government officials.
Hankook Tire says the new plant will be a “major growth factor contributing to the company’s continued global business expansion.” Some 4.2 million tyres, 70 per cent of the factory’s ultimate six million tyre per year capacity, will be exported to the North American, Middle East and ASEAN markets, with the remainder sold in Indonesia. The production programme includes PCR, UHP and light truck tyres.
“Today’s commemoration of Indonesia plant opening marks yet another milestone in Hankook Tire’s ongoing growth as a global top-tier tyre company,” stated Seung Hwa Suh during the opening ceremony. “This is also a clear manifestation of our strong will and commitment for further growth together with Indonesia and other emerging economies. As a leading global tyre company, we will continue our relentless efforts to supply customers around the world with more advanced, globally acclaimed tyres via our new export base in Indonesia.”
Groundbreaking at the 60 hectare Lippo Cikarang site took place in June 2011 and production was originally expected to begin in the final quarter of 2012. At present the plant employs around 1,400 workers, and this is expected to increase to a total of 4,300 by 2018. Hankook previously stated that total investment in the plant up to 2018 will amount to US$1.1 billion.
Hankook Tire is also building up ‘Hankook Masters’ in Indonesia. The first two outlets in this end-to-end distribution channel have been established in Surabaya and Bandung, and the company aims to increase this number to 30 outlets by the end of 2013.