Hankook Sets Sights on Becoming Top 5 Global Tire Manufacturer by 2030

HOUSTON, TX -- Hankook Tire executives recently unveiled an ambitious strategy to elevate the company into the top five tire manufacturers globally. This announcement came during the Partner's Day meeting held in Riviera Maya, Mexico, where they outlined key initiatives and goals for the company's growth.

Currently ranking seventh in global tire sales, Hankook operates in approximately 160 countries, boasting a revenue of $6.2 billion as of 2022. With a workforce of around 22,000 employees and a robust infrastructure including seven regional headquarters, five R&D centers, eight manufacturing plants, and 36 local subsidiaries, Hankook is well-positioned for expansion.

A pivotal aspect of their growth strategy involves a substantial investment of $1.6 billion in the expansion of their Clarksville, Tenn. tire production plant. This expansion, set to unfold in phases, aims to increase production capacity from 5 million to 11 million units, with a focus on passenger and commercial truck tires.

Additionally, Hankook plans to enhance its tire production capabilities in Hungary, aiming for an 800,000-unit capacity per year by 2027. This move will allow for the localization of truck and bus tires, ensuring availability and reducing reliance on imports.

Notably, Hankook emphasized that regardless of manufacturing location, their tire quality remains consistent. With a commitment to rigorous standards, customers can expect top-notch products from any of Hankook's facilities.

Looking ahead to 2030, Hankook has set ambitious goals, including expanding overall capacity to 150 million units, elevating the brand to a top-tier status, leading in technology and electric vehicle (EV) tires, and achieving a 20% EBITDA margin with a 10% operating profit margin.

In parallel, Hankook's sales strategy for passenger and light truck (PLT) tires focuses on enhancing dealer support, optimizing inventory management, and introducing new products like the Kinergy XP and Dynapro HPX.

On the commercial front, Hankook plans to launch four new truck and bus (TBR) tires in 2024, signaling a commitment to innovation and market growth. Despite challenges in 2023, Hankook remains resilient, leveraging strategic partnerships and market insights to drive success.

My personal experience with Hankook has been limited- My Ford Lightning that I recently departed with had 275/60r20 115t hankook dynapro at2 installed as an OEM tire. They had low rolling resistance, extremely quiet ride, and moderately good traction and handling. The issue I had with them (as with nearly all Lightning owners who are driving on them) is extreme edge wear vs the middle of the tire, despite 40+PSI and stringent monitoring/rotating/balancing. Unfortunately like most tire companies, they don't offer a mileage warranty on OEM installed tires

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