Hankook Tire to invest $1.6B in Tennessee plant expansion

The week leading up to Labor Day weekend began Monday with the announcement of 400 more manufacturing jobs for Montgomery County, further entrenching the community in the billion-dollar club for singular business investment.

Hankook Tire said its board of directors approved a $1.6 billion investment to expand its Tennessee plant, located in the Clarksville-Montgomery County Corporate Business Park.

The investment includes the previously-planned Phase 2 expansion that will double production capacity of Hankook’s passenger car and light truck tires, and adds a Phase 3 expansion with the company’s first U.S. production of truck bus and radial tires.

The addition of the Phase 3 expansion project with its 400 jobs yields a total of 1,200 new Hankook jobs overall. Phase 3, alone, is valued at $612 million, state officials noted.

Through the expansion, Hankook will double U.S. passenger car and light truck tire production to 11 million units and enable production of 1 million truck bus and radial tires annually.

The expansion also brings Hankook’s total investment in the area to $2.2 billion and will enable the company to further provide tire dealers and consumers with "high-quality tires and industry-leading services to meet the demands of the American market, while supporting existing and future original equipment partners," the company said in a news release.

“The investment in our Tennessee plant further demonstrates Hankook’s growing presence in the U.S. and commitment to serving our customers,” said Sooil Lee, CEO of Hankook Tire & Technology and president of Hankook Tire America Corp., in the release.

“Through a focus on sustainable construction and innovative manufacturing, the new phase of our Tennessee plant will provide an effective local-to-local supply chain to more effectively fulfill customer demand. Additionally, we are extremely proud to continue to support the local economy by bringing 1,200 new jobs to the Clarksville area."

Since its opening in October 2017, Hankook has produced 5.5 million tires annually for the North American market and generated 950 jobs up to now.

The North American market accounted for more than 28% of total Hankook Tire sales in 2021.

“This production expansion is a vital step to our growth in the medium truck market, making Hankook one of only a few manufacturers producing (truck bus and radial) products in the U.S.,” said Rob Williams, senior vice president of North America Sales, Hankook Tire America Corp.

“As a result, we can better meet the needs of both our growing dealer base and the fleets that serve the North American shipping lanes."

Hankook is expected to break ground on the new plant in early 2023, "subject to definitive agreements, regulatory approvals and other conditions."

Tire production at the new phases of the plant will begin by the fourth quarter of 2024 and reach full capacity by early 2026.

Upon completion, Hankook Tire’s Tennessee plant will house the company’s production, warehousing, building, equipment and utilities in more than 2 million square feet.

“Global brands like Hankook Tire choose to invest in Tennessee because of our strong business climate, skilled workforce and central location,” said Tennessee Gov. Bill Lee in prepared comments early Monday. “I thank Hankook for its continued investment in our state.”

Hankook’s Tennessee Plant is located off International Boulevard, in the southern portion of the Corporate Business Park. Ground-breaking for the initial phase of the plant was in 2014.

The company came at a time when the community was still reeling from the demise of what had been expected to be Montgomery County's first billion-dollar industrial investment — Hemlock Semiconductor (HSC).

The plant was built, but in the 11th hour, Dow Corning corporate officials announced it would not go into production because the global solar energy market that it was planned to support had tanked.

Hankook revived the community's hopes after the HSC developments, and then came a Google data center and multi-phased LG home appliance manufacturing plant, among other local industrial development.

Founded in 1941 and globally headquartered in South Korea, Hankook Tire has been a part of the U.S. tire market since 1981.

In 2016, Hankook Tire America Corp. relocated its North American headquarters to Nashville, following the company’s decision to locate the manufacturing facility in Clarksville. With growth, the company will employ roughly 2,300 people across the state.

Officials weigh in

On Monday morning, other state and local officials also weighed in on the news about Hankook's expansion:

“We are excited that our friends at Hankook Tire have announced funding for Phase Three! We are looking forward to working with Hankook through the construction process and, once complete, to the many job opportunities this project will bring to Montgomery County residents.” – Montgomery County Mayor Jim Durrett  

“TVA and Cumberland Electric Membership Corporation congratulate Hankook Tire on its decision to expand operations and create new job opportunities in Clarksville. Helping to attract and retain jobs and investment to the region is fundamental to TVA’s mission of service. We are proud to partner with the Clarksville-Montgomery County Industrial Development Board and the Tennessee Department of Economic and Community Development to further that mission and look forward to Hankook’s continued growth in the Valley.” – John Bradley, TVA senior vice president of Economic Development

“It is no surprise Hankook Tire has had tremendous success with its manufacturing plant in Clarksville. It is a quality company located in a strong community which has enabled them to make another significant expansion to their operations. Congratulations to Hankook Tire for their continued success. I know this investment will benefit our economy and provide more quality jobs for our citizens.” – 22nd District State Sen. Bill Powers (R-Clarksville)

“Hankook Tire has certainly lived up to its world-class reputation since arriving in Clarksville. This new expansion by the company represents yet another major investment in our community that will create hundreds of additional jobs for residents. I congratulate Hankook Tire on its remarkable success and appreciate its continued commitment to Montgomery County.” – 68th District State Rep. Curtis Johnson (R-Clarksville)

Reach Jimmy Settle at jimmysettle@theleafchronicle.com or 931-245-0247. To support his work, sign up for a digital subscription to TheLeafChronicle.com.

This article originally appeared on Clarksville Leaf-Chronicle: Hankook Tire to invest $1.6 billion in Tennessee plant expansion