[Featured Stock] Hankook Tire Rises Over 4% on Expansion of Tennessee Plant in the US

▲Overview of Hankook Tire Tennessee Plant

[Asia Economy Reporter Kwon Jae-hee] Hankook Tire & Technology (Hankook Tire) is showing a strong gain of over 4% in early trading on the 30th following news of the expansion of its factory in Tennessee, USA.

As of 9:54 AM, Hankook Tire is trading at 38,100 KRW, up 4.24% compared to the previous trading day on the Korea Exchange.

During the session, Hankook Tire's price rose as much as 5.88% to 38,700 KRW before giving up some of the gains.

Hankook Tire held a board meeting the previous day and resolved to expand its Tennessee plant located in Clarksville, Tennessee, USA.

The Tennessee plant is Hankook Tire's eighth global production facility. The first phase of construction has been completed, equipping the plant with manufacturing facilities capable of producing 5.5 million tires annually. With the planned expansion through the third phase, the annual production capacity will increase to 12 million tires.

Hankook Tire plans to invest a total of 1.575 billion USD (approximately 2.1 trillion KRW) in stages from the second half of this year through the first half of 2026 for the expansion.

Kim Gwi-yeon, a researcher at Daishin Securities, stated, "The volume from this expansion will be reflected in 2026, so the impact on short-term performance will be limited. However, considering the fixed cost reduction effect from increased production at the US plant and the current anti-dumping tariffs on exports to the US, it is expected to positively affect profitability and influence short-term investor sentiment."

This content was produced with the assistance of AI translation services.