Hankook earmarks €224m to ‘protect’ earnings, counter US tariffs

Seoul – Hankook Tire has earmarked investments of KWR300 million (€224 million) for expansion projects 
in 2021, with a third of the spend to go on its US plant.

A phase II project at the Clarksville, Tennessee plant will “ramp up [production] and raise price position,” said an item headed ‘protecting profitability’ in Hankook’s financial report.

The KWR100-million investment features among a series of measures being taken in response to the US imposition of preliminary anti-dumping duties of 38.07% on Hankook tires.

Steps included diversifying production, while continuing shipments of strategic products from Korea “due to quality control” considerations.

In its 2021 guidance, Hankook said it was targeting a turnover of over KRW7 billion, representing year-on-year sales growth of 10%.

The gains are to be driven largely by increased sales of 18-inch-and-above sized tires, which are expected to reach 38% of sales this year – up from 35% in 2020.