Hankook Tire Co., Ltd. Business Report FY ended Dec. 2012
Business Highlights
Highlights in FY2012 (ended Dec. 2012)
*-Due to corporate divestiture, fiscal year 2012 was from Sept. 1, 2012 to Dec. 31, 2012.
-The Company will supply Ventus V12 evo UHP tires for the Ford Lincoln MKZ. Its 18-inch tires will be installed on the Lincoln MKZ for sales outside the U.S., and its 19 inch tires on those for sales in and outside the U.S. (From a press release, September 18, 2012)
BMW
-The Company will supply original equipment tires to BMW. The Ventus S1 evo2 tires in the size of 205/60R16 will be mounted on the 3 series. Hankook tires are already fitted as original equipment on the MINI and the 1 series by BMW. All of these tires are manufactured at its Geumsan plant in Korea. (From a press release on April 16, 2012)
DTNA
-The Company was selected as an original equipment tire manufacturer by Daimler Trucks North America (DTNA). Starting in May 2012, Hankook Tire will supply its tires for the Cascadia and Coronado models, which are long-haul trucks sold under the Freightliner brand. The two vehicle models, which are assembled at DTNA's assembly plants in the U.S. and Mexico, will be equipped with Hankook's AL11 steer tires and DL11 drive tires. (From a press release on March 23, 2012)
Financial Overview (Consolidated) |
(in millions of won) |
| FY ended Dec. 31, 2012 (*) |
FY ended Dec. 31, 2011 | Rate of change (%) |
Remarks | |
| Sales | 2,317,223 | 6,488,973 | - | - |
| Operating income | 308,592 | 567,278 | - | - |
| Net income | 231,014 | 355,220 | - | - |
Divestiture
-The Company announced plans to reorganize under a holding-company structure due to its corporate divesture. The holding company, which will be named Hankook Tire World Wide, Co., Ltd., will be in charge of managing the group subsidiaries as well as handling investments. Hankook Tire will still specialize in the tire business. The divesture is scheduled to take place on September 1, 2012. (From an April 25, 2012 press release)Contracts
Ford-The Company will supply Ventus V12 evo UHP tires for the Ford Lincoln MKZ. Its 18-inch tires will be installed on the Lincoln MKZ for sales outside the U.S., and its 19 inch tires on those for sales in and outside the U.S. (From a press release, September 18, 2012)
BMW
-The Company will supply original equipment tires to BMW. The Ventus S1 evo2 tires in the size of 205/60R16 will be mounted on the 3 series. Hankook tires are already fitted as original equipment on the MINI and the 1 series by BMW. All of these tires are manufactured at its Geumsan plant in Korea. (From a press release on April 16, 2012)
DTNA
-The Company was selected as an original equipment tire manufacturer by Daimler Trucks North America (DTNA). Starting in May 2012, Hankook Tire will supply its tires for the Cascadia and Coronado models, which are long-haul trucks sold under the Freightliner brand. The two vehicle models, which are assembled at DTNA's assembly plants in the U.S. and Mexico, will be equipped with Hankook's AL11 steer tires and DL11 drive tires. (From a press release on March 23, 2012)
Award
-The Company again received a World Excellence Award from Ford, which is the third time for the Company, which also won it in 2005 and 2007. The Company was awarded its first supply agreement from Ford in 1991, to supply tires on an OE basis. Since then, its tires have been mounted on Ford's F-150, Econoline, Edge, Flex, Taurus, Fiesta, Explorer and others. (From a June 11, 2012 press release)R&D
R&D Structure
| Facility | Location |
| Main R&D Center | Daejeon, Korea |
| Akron Technical Center | Ohio, USA |
| China Technical Center (CTC) |
Jiaxing, Zheziang Province China |
| Europe Technical Center (ETC) |
Hannover, Germany |
| Japan Technical Liaison office (JTC) |
Osaka, Japan |
-The Company opened a new R&D center in Hanover, Germany, calling it the Europe Technical Center or “ETC”. The new Center will focus on developing OE tires for passenger cars, SUVs, and light trucks. (From an Oct. 1, 2012 press release)
R&D Expenditure |
(in millions of won) |
| FY ended Dec. 31, 2012 | FY ended Dec. 31, 2011 | FY ended Dec. 31, 2010 | |
| Amount | 47,558 | 116,721 | 100,423 |
| % of sales | 2.1% | 1.8% | 1.9% |
R&D Activities
-The Company announced that it developed an airless tire. This newly developed tire will be mounted on an electric vehicle currently under development at Hyundai-Kia Motors. (From a June 29, 2012 press release)Investment Activities
Capital Expenditure (FY ended Dec. 31, 2012)
|
(in millions of won） |
| Planned amount of investment | Amount invested | ||
| Hankook Tire Worldwide | New facilities and equipment | - | - |
| Maintenance and repair | 752 | 752 | |
| Korea | New facilities and equipment | 120,331 | 120,331 |
| Maintenance and repair | 256,610 | 146,069 | |
| China | New facilities and equipment | 332,612 | 221,106 |
| Maintenance and repair | 130,242 | 104,528 | |
| Hungary | New facilities and equipment | 24,326 | 16,400 |
| Maintenance and repair | 12,620 | 10,230 | |
| Indonesia | New facilities and equipment | 301,075 | 266,437 |
| Maintenance and repair | - | - | |
| Total | 1,178,568 | 885,853 | |
Investment Projects
<Indonesia>
-The Company announced that its new plant in Indonesia has stared trial operations with its full-scale production scheduled to begin in 2014. The facility is expected to produce 6 million tires for passenger vehicles and light-duty trucks a year. Construction of the facility started in June 2011. (From a press release, September 21, 2012)