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Date 05/24/2005 Hits74,684

Category Corporate

Hankook Tire' Jiaxing plant becomes first tire factory in China to win Ford Q1 Award

- Jiaxing plant in China supplies 550,000 tires per year to Ford Motor Company

- Hankook Tire supplies USD 90 million of tires per year to Ford, Volkswagen, and Mitsubishi.
Hankook Tire Jiaxing tire plant won the Q1 Award given by US Ford Motor Company, a first for a tire plant in China.
Hankook Tire held a Q1 Award presentation ceremony on May 18th at the Jiaxing plant in Zhejiang, China. Among those attending the ceremony were Han Young-kil, President of Hankook Tire China, Director of Overseas OE Lee Ki-woong, Ford Motor Company Vice President of Purchasing in China Jack Cheng, Ford STA (Supplier Technical Assistance) Stuart Song and other representatives from the two companies.
The Jiaxing Hankook Tire factory is the first tire plant in China to receive the prestigious Ford Q1 Award , a certification of quality. This is the second such triumph for Hankook Tire. In 2002, its Daejeon plant was acknowledged for superior quality by winning the Q1 Award for the first time in Asia.
Hankook Tire is the only Korean company to have won the Ford Q1 Award. The award is a recognition of excellence which guarantees continued orders from Ford, known for its rigorous parts supply regulations. Only the world leading manufacturers with technological prowess such as Michelin, Goodyear, Continental, Pirelli, Bridgestone and Hankook Tire have received the esteemed certification.
The Ford Motor Company uses the Q1 Award to guarantee high quality delivery from parts suppliers.
Companies must pass a rigorous inspection process of not only the tire performance and quality, but also a close examination of the plant production system including delivery results and delivery timing over a period of six months.
Hankook Tire Jiaxing Plant produces 12 million tires for passenger car use every year and boasts the most advanced high-tech facilities among tire makers that have entered China. Currently, the plant supplies 550,000 tires for Ford Focus and Escape automobiles.
At the Zhejiang and Qingjiang plants in China, Hankook Tire produces 20 million tires per year. This places Hankook Tire in 2nd place for total tire production in China and No. 1 in passenger car tires with a leading market share of 28.5%.
Hankook Tire (including plants in both Korea and China) supplies 2.9 million tires per year (62%of total overseas OE) to Ford Motor Company for its representative pickup truck, the F-150, its medium sized passenger car the Mondeo, as well as the economy-line vehicles. This translates into USD 60 million in exports.
As a leading global automaker with 100 years of history, Ford Motor Company has production facilities in 43 countries around the world and exports to 200 countries with sales reaching KRW 180 trillion.
Hankook Tire China President Han Young-kil said, "The first Q1 Award in China won by the Jiaxing plant means that a leading global car maker has recognized Hankook Tire superior production facilities, as well as distribution and product technology in our factories in China." Han added, "The certification will play a major role in increasing overseas sales as it will serve as an opportunity to expand supply to worldclass automakers other than Ford in addition to raising our international brand recognition."
Aside from Ford Motor Company, Hankook Tire delivers more than USD 90 million in tires annually to internationally recognized car makers such as Volvo, Daihatsu, Renault, Mitsubishi and Volkswagen. The company is also pursuing OE supply contracts with GM and Chrysler of the US, Japan Toyota as well as other top global car companies.
[Introduction of Hankook Tire Plants in China]
As a tire supplier to consumers in 170 countries around the globe, Hankook Tire (, CEO: Cho Choong-hwan) completed construction of two factories in China Jiaxing and Qingjiang regions in 1999 as part of efforts to globalize production. Currently, 20 million tires are produced per year at the plants and Hankook Tire is the 2nd largest tire producer in China. Meanwhile, Hankook is the leading manufacturer of passenger car tires in China with a market share of 28.5%.
Hankook Tire set a mid- to long-term strategy of becoming the biggest and best tire manufacturer in China by commanding a 35% market share for passenger car tires, building production facilities for 30 million tires per year and installing a vast distribution network that will connect the entire Chinese market.
In 2002, just 4 years after production began Hankook Tire plants in China recorded KRW 20.9 billion in the black. In 2004, sales amounted to KRW 546.2 billion with net profit reaching KRW 60 billion.
* Sales trends in the factories in China (unit: KRW billion)
Year 2000 2001 2002 2003 2004
Sales 189 218.8 280.1 327.5 546.2



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