Seung Hwa Suh, Hankook’s vice chairman and CEO, called the construction of the U.S. plant “the next natural phase for our continued growth.” He told reporters that the decision to locate in Tennessee was the result of a year of discussions with state officials, and he cited the central location and existing auto industry as major factors.
Nissan, General Motors and Volkswagen have assembly plants in Tennessee, and more than 900 further automotive sector companies are active in the state. Ford, GM and Toyota build vehicles in neighboring Kentucky.
“By supplying to major carmakers, our brand is getting better known in America,” Suh said. The company supplies Ford, GM, Chrysler, Volkswagen, Toyota, Nissan, Honda, along with Korean automakers Hyundai and Kia.
Clarksville is also home to a steel cord plant for Japanese tire maker Bridgestone, which has its Americas headquarters in Nashville.
Not all the news has been good for the tire industry in Tennessee in recent years. Goodyear in 2011 shut its plant about 100 miles to the west in Union City, causing 1,800 workers to lose their jobs.
The state offered $72 million in incentives to improve infrastructure, training and a cultural program to help Korean families integrate into the community. Local governments approved another package worth $50 million.
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