Hankook investing to expand Indonesia plant
On 17 January, the board of Hankook Tire resolved to invest KRW 380.2 billion (£215.7) in the second stage expansion of the company’s factory in Indonesia. In a statement filed with the Korea Exchange (KRX), the tyre maker said the period of investment would extend until the end of 2015 and involve an 11.8 per cent ratio to equity capital.
The PT. Hankook Tire plant in West Java officially opened last September and its planned capacity is six million tyres per annum. Hankook says 4.2 million tyres, 70 per cent of the factory’s ultimate 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.
When it entered operation, the PT. Hankook Tire factory employed around 1,400 workers. This number is expected to increase to a total of 4,300 by 2018. Hankook has stated that total investment in the plant up to that date will amount to US$1.1 billion.