Hankook's Tennessee Plant Truck Tire Capacity Utilization Reaches 30%

en.Wedoany.com Reported - Hankook Tire North America President and CEO Rob Williams said the company's Clarksville, Tennessee, plant has reached 30% capacity utilization for truck tire manufacturing since production began in May. The plant's Phase 3 project marks Hankook's first U.S. production of truck tires and is expected to reach full capacity by the end of 2027. Williams, a Virginia native, has been with Hankook since 2019.

Williams said at a media event following a plant tour that the company typically allows an 18-to-24-month ramp-up period. The Clarksville truck and bus radial (TBR) tire operation will have an annual capacity of 1 million units at full production. The expansion into U.S. truck tire manufacturing runs parallel to a doubling of passenger and light truck tire capacity at the site to 10 million units. By the end of 2027, approximately 85% to 90% of Hankook's truck tires sold in the U.S. will be produced at the Clarksville plant, whereas U.S. customers previously received commercial vehicle tires manufactured in South Korea.

Williams emphasized that the plan for the $1.6 billion total investment at the plant, including the doubling of passenger and light truck tire output, was already underway before the Trump administration began imposing high tariffs on imported goods, including tires and raw materials such as natural rubber, in 2025. He noted that all materials imported from South Korea face a 25% across-the-board tariff; Williams said tariffs are neither an advantage nor a disadvantage and are not a factor in the company's considerations. Additionally, goods imported from South Korea are subject to a 12.5% Section 301 tariff, while steel and aluminum imports face a 50% tariff.

The Clarksville plant, which began operations in 2017 and focuses on passenger and light truck tires, currently employs 900 people. After the Phase 3 expansion is completed, total employment is expected to reach approximately 2,600. Hankook is still recruiting machine operators and engineers for the truck tire plant. When a Transport Topics reporter visited on August 17, some equipment was still being installed.

The plant's Phase 3 construction comes amid an overall contraction in U.S. domestic truck tire manufacturing. Since the beginning of 2025, three major U.S. tire plants have closed: Yokohama's passenger and light truck tire plant in Salem, Virginia (closed March 2026), Yokohama's agricultural radial tire plant in Spartanburg, South Carolina (closed February 2025), and Bridgestone's commercial tire plant in LaVergne, Tennessee (closed July 2025). Williams said at the briefing that before starting truck tire production in Clarksville, Hankook reached out to a significant portion of the former management staff from the LaVergne plant to build its own team.

The Clarksville plant currently produces four tread patterns (SKUs): AL 52, DL 12, DL 52, and DL 21, with plans to add four more in September. Mark Roe, vice president of truck and bus tire sales, said that to sell these additional tires, Hankook has expanded its sales team, particularly for fleet sales, and increased points of sale. Roe said he is very optimistic about Hankook's prospects for 2026 and 2027, noting that the Tennessee plant alone has given Hankook visibility in many areas where it previously had no presence; Hankook is a very well-known product, and with production in Tennessee, he is also very optimistic about 2027, 2028, and the remainder of 2026.

The latest forecast released by the U.S. Tire Manufacturers Association (USTMA) on August 6 projects truck tire demand of 27.5 million units in 2026, down 5.5% from 29.1 million units in 2025. In March of this year, the association had projected total truck tire demand of 29.4 million units.

Williams and Roe also said Hankook's brand awareness will be further enhanced by winning the International Motors Diamond Supplier Award. Hankook is one of 10 winners announced in early August for 2026. Sanjay Goel, International Motors' vice president of global strategic sourcing, cab, and electronics, said during the award presentation that the recognition stems from product quality, sustainability, responsiveness, and supply chain reliability. Hankook supplies original equipment tires for International's HV and MV series trucks, as well as IC Bus school and transit buses, along with replacement drive and steer tires.