Hankook Tire expands U.S. production to increase truck tire output
- Hankook Tire plans to expand TBR tire production at its Tennessee factory, targeting 1 million units by the end of 2026.
- The company aims to double its capacity for passenger car and light truck tires to 11 million.
- The expansion reflects the growing TBR market and potential tariffs affecting imports from South Korea.
In South Korea, Hankook Tire & Technology announced its plans to expand production in its U.S. factory located in Tennessee on July 22, 2025. The company aims to roll out truck and bus radial tires (TBR) later this year as part of its production strategy. This development marks a significant shift for the Tennessee plant, which has primarily focused on passenger car and light truck (PCLT) tires since its establishment in 2017. To meet growing market demands, Hankook Tire intends to ramp up its TBR production to 1 million units by the end of 2026. The decision to manufacture TBR tires in the United States is largely influenced by anticipated tariffs on products imported from South Korea, which are expected to reach 25% as proposed by the Trump administration. As the largest market for TBR tires produced in its East Asian facilities, North America represents a critical strategic focus for Hankook Tire, accounting for 38% of its sales. By installing TBR manufacturing lines domestically, the firm seeks to mitigate the impact of these tariffs. Industry experts point out that TBR tires are more profitable compared to PCLT tires, making this expansion particularly noteworthy. Professor Kim Pil-soo from Daelim University emphasized that while the general consumer trend leans towards PCLT tires, tire makers benefit significantly more from TBR production as it contributes largely to overall sales. The demand for truck and bus radial tires is on the rise, prompting Hankook Tire to devote resources to this sector, presenting an opportunity for further growth. Zion Market Research has projected substantial growth in the global TBR tire market, which is set to increase from $17.79 billion last year to an estimated $34.47 billion by 2034. This forecast highlights the rapid expansion and lucrative nature of the TBR segment, aligning with Hankook Tire's strategic decision to bolster its production capabilities in the U.S. as it responds adeptly to market dynamics and tariff-related challenges.