Our Growth Strategy
We have built a solid foundation of unsurpassable growth and from that basis we are steadily expanding through anticipating the future of the automotive industry worldwide and executing an optimal strategy to match the opportunities that lie ahead.
'Vision for 2020'
Hankook Tire has grown to be the fifth largest in tire production capacity and seventh in sales internationally. We have 7 production sites, 30 sales branches and 5 R&D centers around the world. This is a result of Hankook Tire’s spirit of challenge, commitment, and hard work. Without breaking stride, our vision is to lead the world’s driving industry, and become a major global player by providing our customers value and pleasure.
Capitalizing on Economies of Scale
Hankook Tire has maximized economies of scale based on large, strategically located factories worldwide. The firm operates large-scale production operations in four nations—Korea, China, Hungary and Indonesia—to supply products efficiently to over 180 nations. Hankook Tire has expanded our production facilities in Daejeon and Geumsan, making them the world’s largest tire production facilities.
With an aim to make the rapidly advancing Chinese market into another “home market” in terms of replicating the success achieved in Korea, our production facility there serves as a centerpiece for maintaining a strong position in the ever-changing region. Our plants in Hungary and Indonesia also laid the foundation to enter and thrive in new markets in the EU and ASEAN. In addition, we upgraded our supply chain management system to provide customers with the products they want, anytime and anywhere. This has served as the basis for Hankook Tire’s sustainable growth.
Brand Value Focus for Mature Markets, Market Share Growth for Emerging Markets
Customizing strategies for each market is the key principle Hankook Tire has adhered to for the last 70 years and it has proved its worth. As a relative newcomer in many markets, we are expanding our presence and enhancing our brand value through high quality products and aggressive investment strategy, while our aim in emerging markets is to increase market share where there is high potential for rapid economic development. We plan to expand production in regions where high demand is forecast, and foster long-term regional development and market dominance.
Raising Capital Expenditure
Strategic facility and R&D investment is the driving force behind the sustainable growth of Hankook Tire, and our top-quality products and productive operations are the direct result. In line with this strategy, we launched production and R&D expansion at plants in Indonesia and China in 2012, and recently announced a plan to build a new R&D facility in Daejeon which shows the company’s commitment to technological leadership. In addition, we are making aggressive investment in both tangible and intangible assets such as upgraded integrated global management systems and increased human capacity.