Hankook Tire Co., Ltd. Business Report FY2010
Financial Overview (Non-consolidated)
|(in millions of won)|
|Sales||3,354,415||2,811,860||19.3%||Sales increased thanks to a rise in sales of ultra high performance (UHP) tires in Korea as well as continued strong demand from its customers overseas.
The Company will supply its Optimo H426 tires to Ford, featuring them on the 2011-model-year Lincoln MKT crossover SUV. (The tire size will be 255/45R20V.) It won its first OEM agreement from Ford in 1999, and in 2009 its 19-inch tire was chosen for installation on the Lincoln MKT sold in North America. This will be the first time for Hankook to supply a 20 inch tire to an automaker based in North America. (From a press release on Jun. 22, 2010)
The new unit of its Hungary plant started production. When full operation begins in the second half of 2011, the plant will more than double its current capacity, permitting production of 12 million tires per year. The Company invested 230 million euros in the additional facility, bringing the total investment in the Hungarian Plant to 550 million euros. The facility manufactures passenger car tires, SUV tires and light truck tires, supplying them to Europe and the CIS. (From a press release on November 17, 2010)
The Company's tire production facility in Hungary has produced its 10 millionth tire. Since launching production in June 2007, the Hungarian plant has been supplying tires for vehicles such as the Hyundai i30 and the Volkswagen T5. The facility, which now has the capacity to produce 5 million tires per year, is planning to double its capacity to 10 million by 2012. (From a press release on Jan. 28, 2010)
|Main R&D Center||Daejeon,
|Akron Technical Center||Ohio,
|China Technical Center
|Europe Technical Center
|Japan Technical Liaison office
|(in millions of won)|
|% of sales||3.0%||3.4%||3.2%|
Capital Expenditure-The Company iinvested a total of 183,771 million won in FY2010, focusing on expanding its production capacity.
-The planned amount of investment in 2011 is 321,594 million won, which includes 51,311 million won to be spent for installing additional production facilities.
The Company announced a 353 million USD investment plan to build a new manufacturing plant in Bekasi, Indonesia. The new plant will provide passenger and bus-and-truck tires, devoting more than 50 percent of the plant's capacity to tires for the North American market. The Company expects to break ground on the new manufacturing facility in the third quarter of 2011. The construction is expected to be complete by September 2014, rolling out 6 million tires a year. The construction site will span over a 6.4 million square foot area. Currently, the Company has five production facilities around the globe. In November, 2010, it announced plans to build an additional plant in China. It expects its annual global production capability to reach 100 million units by 2014. (From a press release on December 22, 2010)
The Company will build its global sixth manufacturing plant in Chongqing, China with a total investment of 954 million USD. The newest plant will be Hankook's third plant in China. It will break ground in the first quarter of 2011 and is expected to be completed by the end of 2015. Upon completion, the new plant will produce a total number of 11.5 million passenger car and truck-and-bus tyres, generating sales of 1 billion USD annually. The Company currently has a total production capacity of 87 million units per year. With an additional sixth plant, the production capacity is expected to increase to 100 million units per year. (From a press release on November 23, 2010)