Hankook confirms plans to build UHP tyre plant in Korea

Seoul, Korea - Hankook Tire has confirmed that it will build a factory for car tyres in Korea, with the new capacity due on stream by December 2009.

A company spokesman forwarded a statement by by Hyun Schick Cho, Executive Vice President and Chief Marketing Officer. The statement said, "Hankook Tire is increasing investment in its existing Geumsan plant in order to expand production capacity for UHP (Ultra High Performance) tyres to meet increasing global demand and maintain consistently high levels of quality."

The statement added the following details:

• Investment Amount: KRW 235.1 billion / 246 million USD / 188 million Euro

• Location: 5,400 Pyoung (17,860 square meters) idle site at Geumsan plant in Korea

• Planned production capacity: 5 million units per year

• Product: Ultra High Performance (UHP) tyres

• Expansion schedule: Commencing in February 2007; target completion by December, 2009 (about three years)

• Why Guemsan? Geumsan is a fully automated plant which produces all of Hankook Tire's high-end products. This planned investment is part of the long-term development of the Geumsan plant and will benefit from considerable synergies with the existing facilities.