Hankook Tire shuts a plant in Tennessee for two weeksHankook Tire & Technology is suspending operations at a U.S. plant amid the coronavirus outbreak.
The tire manufacturing factory in Clarksville, Tennessee, for the world’s sixth largest tiremaker in terms of sales will shut for two weeks from next Monday to April 7.
Hankook Tire said the move was aimed at controlling its inventories at manageable levels as global automakers suspend their manufacturing operations as a result of the outbreak. The Korean tiremaker announced a day earlier that it will suspend operations at its plant in Hungary for the same reason. That plant will also close for two weeks.
The company is also considering closing other tire manufacturing plants in light of lower demand for cars globally. The tiremaker expects sales to weaken as Hyundai Motor and Kia Motors shut their plants in Europe following the introduction of movement restrictions and lockdowns.
Hankook Tire has two factories in Korea and six overseas with a combined capacity of 100 million units per year.
Three of the overseas facilities are in China, while the other factories are in the United States, Hungary and Indonesia.
BY KO JUN-TAE [email@example.com]
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