5 Dec 2008
ERJ staff report (TB)
Seoul, South Korea -- Hankook Tire Co. Ltd. is reducing its production volume during December.
Hankook's US subsidiary, Hankook Tire America Corp., said the capacity cutback is due to declining demand for cars in a number of markets. It will be a minor adjustment spread across some plants by adjusting operational days but will not affect employment, a US spokesman said.
The company wouldn't quantify how many units would be affected nor would it disclose which facilities would be impacted. The spokesman said the production cutbacks are slated only for December and will not affect tyre supply to US dealers.
Even with the December cutbacks, Hankook said its global capacity still will be 10 percent higher than 2007 volumes. Sales for the three quarters of 2008 have grown 18.4 percent, 27.5 percent and 24 percent respectively, the company said.
From Tire Business (A Crain publication)
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