Chongqing, China – Hankook started a trial run of the phase-two project, including 6 million tire/year PCR capacity and 900,000 tires/year TBR capacity, at its plant in West China’s Chongqing in May.
Construction of the project began in January 2014. The trial has been successful and the facilities are expected to start full operation shortly, according to the company.
The Chongqing plant, with additional 28,800 tire/year TBR capacity completed earlier in the phase-one project, is Hankook’s most heavily invested plant in China.
The unit has received 973 million yuan (€136 million) investment with a total of $954 million (€849 million) earmarked.
The plant aims to have a 1.6 million tire/year TBR capacity and 11 million tire/year PCR capacity -converted from the tire/day measurement - when all projects are completed.
Several major automotive companies, such as Changan Ford and Shanghai GM, have set up factories in Chongqing, and the city has a new International Automotive Town with investment in hundreds of millions (yuan) in the pipe line.
Hankook plans to supply most of its output here to auto manufacturers in West China, and is especially keen to partner up with Changan, said the company.