Hankook Tire to build 6th overseas plant

SEOUL, Oct. 23 (Yonhap) -- Hankook Tire Co., South Korea's top tire maker, plans
to build its sixth overseas plant in Southeast Asia in an effort to become the
fifth-largest producer in the world, its chief executive said Friday.
Chief Executive Officer Suh Seung-hwa told reporters that the company may spend a
budget of between US$250 million and $300 million to build the new plant, which
would have an annual production capacity of 10 million tires. Construction is to
be completed by 2013.
"We are now searching a site for our sixth plant in Southeast Asia, including
Vietnam," Suh told reporters.
Hankook, the world's seventh-largest tire maker by revenue and about 10 percent
owned by French tire maker Michelin, aims to increase its ranking by two notches
by 2014, Suh said.
"Once the sixth plant begins production and plants in China and Hungary increase
their production volumes, our total production volume will reach 100 million
units a year after five years," he said.
Currently, Hankook produces 78 million tires annually at its plants.
Suh expected the global tire market to see a tight supply in 2013 or 2014, and
said there is a possibility that the company may build a seventh overseas plant
if that happens.
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