Hankook Tire breaks ground on Tennessee plant

Hankook Tire CEO Suh Seung-hwa (fifth from left), Tennessee Gov. Bill Haslam (sixth from left) and other company and government officials attend the ground-breaking ceremony for the tire maker’s new plant in the U.S. state on Thursday.

Hankook Tire Co., the world’s seventh-largest tire maker by sales volume, said Friday that it has begun construction work on its first U.S.-based production facility in Tennessee.

The company, one of the fastest-growing tire manufacturers in the world, said the new plant, which is expected to start production in 2016, will have a capacity of 11 million units.

The tire maker is investing some $800 million in the 469-acre plant in Clarksville, estimated to create 1,800 new jobs for the community.

It said most of the products made will be sold in the North American market, giving the company the opportunity to strengthen its engagement with U.S.-based automakers.

The company added that output from its U.S. plant will push up annual global production to well over the 100 million mark. The company, which currently has plants in South Korea, China, Hungary and Indonesia, aims to produce 95 million tires this year.

“The plant will be a pivotal instrument to accommodate our growing business in the United States and to propel a well-balanced global production portfolio,” Suh Seung-hwa, vice chairman and CEO of Hankook Tire, said at the groundbreaking ceremony Thursday. The ceremony was attended by Tennessee Gov. Bill Haslam.

The 73-year-old company has steadily increased its presence in the world’s largest economy. It set up its American regional headquarters in 1981 and built its Akron Technical Center in 1992. (Yonhap)