Hankook Tire_Business Report FY2008
|Financial Overview (Non-consolidated)||(in millions of won)|
|Sales||2,644,236||2,253,044||17.4%||Sales increased year-on-year, thanks to greater sales of high value-added tires.|
|256,383||274,047||(6.4%)||Operating income and net income fell from a year ago due mainly to soaring materials prices.|
The Company announced the
consolidated results of its tire division for the fiscal year ending Dec.
2008. Sales reached 4,076,500 million won, an increase of 25.8 percent
compared to the previous year's result of 3,241,200 million won. The figure
also exceeded the company's sales target, which was set at 3,877,800 million
yen, by 5.1 percent. The company attributed the strong results to the
35% year-on-year increase in sales of ultra high-performance (UHP) tires,
which became a large contributing factor. By region, sales of these UHP
tires were up 48 percent in Europe and 21 percent in the Americas. OE
sales rose by 42 percent. The company says it aims to achieve sales of
4,325,500 million won for the fiscal year ending Dec. 2009. (From a press
release on Jan. 19, 2008)
The Company will supply Volkswagen with tires for use in the new Tiguan sport utility vehicles (SUVs). It will supply Volkswagen 70,000 tires, manufactured at Hankooks' Geumsan Plant in Korea, starting in Jan. 2008. These tires will be 215/65R16H in size. (From a press release on Jan. 14, 2009)
Michelin has raised its stake in Hankook Tyres to 8.9%. In March 2006, Michelin had already raised its stake in Hankook to 6.3%. This acquisition is in line with the agreements signed by the two companies in 2003, pursuant to which Michelin could increase its stake in Hankook Tyres to up to 10%. (From a press release on Jun. 18, 2008)
|Main R&D Center||Daejeon,
|Akron Technical Center|| Ohio,
|China Technical Center
|Europe Technical Center
|Japan Technical Liaison office
|R&D Expenditure||(in millions of won)|
|% of sales||3.2%||3.7%||3.6%|
New product developments (FY2008)
-In Mar. 2008, the Company released the XQ Optimo nova premium tires.
-In Jun. 2008, the Company released the Enfren eco tires.
R&D achievements (FY2008)
|Development of green tire forming technology and 3D analysis technique for vulcanizing processes||Mar. 2007
|Analyzed rubber flow behavior in the molding process of green tires|
|Study of silica synthesis technology and its nano rubber compound application||Oct. 2007
|Developed high-quality rubber materials by using nano-silica compounds|
|Development of Ride Tire Model||Jan. 2008
|Developed Ride Tire Models after conducting virtual road tests to simulate tire vibration in different driving conditions|
|Development of technology to improve belt durability of truck and bus radial tires (TBRs)||Jan. 2007
|Improved belt durability of truck and bus radial tires (TBRs)|
-The Company iinvested a total of 209,011 million won in FY2008, focusing on expanding its production capacity.
-The planned amount of investment in 2009 is 299,939 million won, which includes 140,434 million won to be spent for installing additional production facilities.
-Geumsan Plant (Korea)
The Company will invest 275.5 billion won in a project to expand its facility in Geumsan. The project will be carried out in two stages. The first phase of the project, which cost 76.3 billion won and was already completed in January 2008, raised the plant's daily production capacity by 4,000 tires. The Company is set to spend an additional 199.2 billion won in the second-phase, which targets a further increase of 12,000 tires a day by June 2009. After the second phase is completed, the facility's daily production capacity will be increased from the current 46,000 tires to 62,000 tires. On a yearly basis, its capacity will go up from the current 17.7 million tires to 22.0 million tires. (From a press release on Jun. 4, 2008)