Hankook Tire & Expertise headquarters in Pangyo, Gyeonggi Province / Courtesy of Hankook Tire & Expertise
Main Korean tire producers are accelerating their investments in Europe, drawn by the area’s strategic benefits for well timed tire provide to native clients. The transfer comes amid surging demand for high-margin, value-added premium tires, that are more and more favored within the European market.
Hankook Tire, Korea’s largest tire maker, is increasing a manufacturing line at its Racalmas manufacturing facility in Hungary to provide an extra 800,000 business car tires yearly by 2027. As soon as accomplished, the manufacturing facility’s whole manufacturing capability will attain 18.8 million tires.
Europe is Hankook Tire’s largest market, representing 45 % of the corporate’s whole gross sales final yr. The agency’s tire enterprise posted a third-quarter working revenue of 519.2 billion received ($350 million), up 10.4 % from a yr earlier. Hankook Tire attributed the double-digit earnings development to robust gross sales of high-margin tires over 18 inches, significantly from European clients.
Kumho Tire’s R&D middle in Yongin, Gyeonggi Province / Courtesy of Kumho Tire
Kumho Tire can be transferring to broaden its funding in Europe, lately confirming plans to construct a brand new manufacturing facility in Opole, a metropolis in southwestern Poland. The corporate will make investments 860 billion received within the plant, which is anticipated to have an annual capability of six million tires when it begins operations in August 2028. In keeping with DS Funding & Securities, the ability is projected to generate annual gross sales of 530 billion received as soon as totally operational.
Europe has additionally turn out to be a significant revenue driver for Kumho Tire, with gross sales within the area rising sharply in recent times. The corporate recorded gross sales of 970 billion received in 2023, which jumped to 1.2 trillion received in 2024. This yr, Kumho Tire is anticipated to generate round 1.4 trillion received.
“Europe’s strategic significance will proceed to develop to Korean tire makers, as they will quickly soak up hovering demand for value-added tires, akin to ones for electrical automobiles (EVs), by increasing manufacturing capability there,” an official from the business stated. “They will additionally reduce pointless logistics prices by localized manufacturing.”
Nexen Tire’s Nexen UniverCITY analysis institute / Courtesy of Nexen Tire
Nexen Tire can be going all-out to spice up manufacturing capability for its manufacturing facility in Zatec within the Czech Republic. The corporate established the plant in 2019 and accomplished its enlargement final yr, enabling the ability to provide 11 million tires yearly.
The transfer is meant to proactively meet rising demand from its European auto purchasers.
“Tire corporations guess larger on Europe, because the market has extra development potential than every other main markets, akin to the US, as European clients are quickly embracing EVs and the area is extensively thought-about to have much less commerce danger than the world’s largest economic system below the Donald Trump administration,” the official stated.
