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Date 27/01/2008 Hits68,213

Category Corporate

Hankook Tire Grows Fastest of Major Tire Makers to Consolidate World Number Seven Position

Hankook Tire Grows Fastest of Major Tire Makers to Consolidate World Number Seven Position
 
- Sustained 20% sales growth contributes to Hankook Tire’s continued rise up the world rankings
- Net profit to net sales ratio of 8.4% in 2006, ranked highest amongst all major tire makers
 
Seoul, Korea, January 28th, 2008 – Hankook Tire (www.hankooktire.com) was the world’s fastest growing tire maker by sales in 2007 and consolidated its position as the seventh largest tire manufacturer, according to independent industry figures published by Modern Tire Dealer.
 
The figures show how Hankook Tire’s consistent investment of 5% of revenues in research and development, as well as its strategic focus on quality, has translated into estimated sales of US$3.5 billion in 2007, representing year-on-year growth of 20.6%. The company has climbed from eighth in 2005 and eleventh in 2001.
 
Opening its first European, €500 million (approx. US$700m*) production facility in June 2007,  as well as being a market leader in Korea and China, the company recorded both the industry’s highest profit margin (8.4%) and second highest employee-to-sales ratio in 2006 (approximately US$350,000 or €250,000*).
 
Mr. Seung Hwa Suh, CEO, Hankook Tire, said, “Gaining sales volume alongside profitability is a reflection of our increasing reputation for quality and high-performance tires.  The results show that we have made significant ground in closing the gap to the world’s number six position and independently verifies our ongoing success in making inroads into new and established markets.  We will continue to focus on key growth drivers that will sustain this success over the long-term.”
 
Hankook Tire will disclose 2007 global performance results on the 11th February 2008. The company will continue to base growth on four key strategic business drivers: ongoing improvement of management and leadership processes and structures; increased production and distribution capabilities; consistent investment in technological innovation; and building the Hankook Tire brand by leveraging OEM reputation and conducting ‘smart marketing’ activities.
 
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Notes to Editor
Figures from Modern Tire Dealer, new tire sales (estimates):
 
Sales (Fiscal year 2007 in billions of U.S. dollars)
Rank Company 2007 2006

% Y-on-Y Growth

1 Bridgestone Corp.

$21.8

$19.6

11.2

2 Groupe Michelin

$21.7

$19.4

11.9
3 Goodyear Tire & Rubber Co.

$18.3

$17.8

2.8

4 Continental AG

$8.6

$7.7

11.7
5 Pirelli & C. SpA

$5.8

$5.0

16.0

6 Sumitomo Rubber Industries

$3.6

$3.8

-5.3

7 Hankook Tire Co.

$3.5

$2.9

20.7
8 Yokohama Rubber Co.

$3.2

 


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