Hankook Tire Chongqing builds the world's largest factory

On May 13, 2013, in Chongqing Hantai Tire Co., Ltd., Yufu Industrial Park, Liangjiang New Area, along with a “click” sound, a diameter of about 1 meter The tire falls out of the mold. After ten procedures, including lanugo, visual inspection, and X-ray exposure, this tire will be robotized into a spacious automated warehouse. A month later, they will sail across the sea and appear on the wheels of American trucks .

As the world's leading tire manufacturing company, Hankook Tire, which settled in the Liangjiang New District at the end of 2010, is releasing its production capacity. With the completion of the fourth phase of the project, Chongqing Hankook Tire will leap into Hankook’s global single largest capacity plant.

Annual output value will reach 6 billion by 2015

“Only last month, we had 10,000 tires exported to the United States by sea.” At the Hantai plant in Chongqing, the labor union chairman of Chongqing Hantai Tire Co., Ltd., Li Min, pointed at a tire product and told the Commercial Daily reporter that it can now Produce 2000 cart tires.

Hankook Tire, which settled in the Liangjiang New District at the end of 2010, invested US$278 million in the first phase and currently produces truck tires. With the completion of the fourth phase of the project, Chongqing Hantai will become the largest single-capacity plant among Hankook Tire's seven largest plants in the world.

At the same time, Hantai's investment in the capital is still increasing. In the second half of the year, Chongqing Hantai Tire will build the second phase of the project, the car tire (passenger tire) production line, which is expected to be put into operation by the end of next year. "The second phase will invest 300 million U.S. dollars, and will produce 15,000 car tires per day after it is put into operation. The annual output value will reach 1.5 billion yuan." Zhang Menggen, the tire factory manager of Chongqing Hankook from South Korea, told the China Daily reporter in fluent Chinese.

“Chongqing factory is Hankook’s current largest investment and most advanced equipment. The total investment in Chongqing’s fourth phase project is 954 million US dollars. It is expected that it will be completed and put into operation in 2015.” Zhang Menggen said that by then, Chongqing Hantai Tire will produce small products every day. There are 30,000 tires and 4,500 large tires. The annual production capacity will reach 11.6 million, and the annual output value will reach 6 billion yuan, which will “promote Hankook Tire from the seventh in the world to the fifth in the world”.

Attracting Hantai's "Two Rivers Speed"

It is understood that Chongqing Hankook Tire, which has invested nearly 1 billion U.S. dollars, is one of the largest foreign-funded projects in terms of registered capital in Chongqing. It took only less than 100 days from the initial exposure to formal signing.

On August 30, 2010, Hankook Tire executives came to Liangjiang New District and expressed their willingness to enter. In the evening, members of the Liangjiang New District Management Committee team held a leadership group meeting for the project. Five days later, Liangjiang New Area visited the company's headquarters in Shanghai.

Li Xiuyin, chairman of Hankook Tire China, said that the reason for promoting Hankook Tire to invest in Chongqing is the unswervingly open attitude of the Chongqing municipal government and the huge potential for future development of the Liangjiang New District and the sincerity of the Liangjiang New Area Management Committee.

In fact, it is not just the "speed of the two rivers" that really attracts transnational investors. In the view of Zhang Menggen, in the context of the global industrial transfer and the westward advancement of the industry, the Liangjiang New District, which is located in inland open highlands, has a comparative advantage unmatched by coastal cities.

“Chongqing's factory has a superior geographical location, with Cuntanang, Guoyuan Port and the road transportation network extending in all directions, and the logistics transportation is unimpeded. As the third national development zone, Liangjiang New Area has many preferential policies, and the government’s support is also very strong. "Zhang Menggen said that the collection of various factors of production will inevitably bring about a strong cost advantage.

Low cost is also an important reason why the Liangjiang New Area can continuously attract multinational corporations and international capital. According to the data provided by the Administrative Committee of the Liangjiang New Area, the comprehensive cost of production factors such as water, electricity, natural gas, land, and labor in the Liangjiang New Area is equivalent to only about 60% of the cost in the coastal areas, and costs such as low-cost industries and supporting construction costs are also Far lower than the eastern region.

Western Market and International Competition

“When leaders of Hanjiang New District inspected Hantai, they jokingly said that if a conveyor belt is installed in the underground of the factory, the tires can be sent directly to the automobile factory. Even the loading of vehicles is unnecessary.” Li Yu pointed to the neighboring Hankook tires. Changan Automobile Yufu Factory told the Commercial Daily reporter.

In fact, this is not a joke. After the second phase of the project is put into operation in the end of next year, Changan Automobile is its target customer. The establishment of Hankook in the new area of ​​the two rivers also places great emphasis on the entire western market including Chang'an Automobile.

“At present, Hankook has two production bases in Jiaxing, Zhejiang, and Huai'an, Jiangsu, but the production of tires in the eastern part of China cannot yet meet the market share target of Hankook Tire in China. In order to complete the business goals, it is necessary to send it to western China. To expand the market to meet the needs of different consumers.” Zhang Menggen said that the future production of automotive tires will mainly think that the car companies around the Chongqing factory supporting the main, and the radiation of the entire central and western regions.

"Chongqing factory's products will also be sold around the world, using the lower cost factors and convenient logistics channels in Chongqing to participate in international competition." Zhang Mengen said.

Hankook entered the Han River and brought positive influence on the Liangjiang New Area in many aspects such as production and management. “As the world’s leading tire manufacturer, Hankook will be the first to enter the Liangjiang New District and will serve as a 'leader' for more South Korean companies to enter China’s western region.” Zhang Mengen said that as a multinational company, Hankook not only owns advanced machines. Equipment and production technology, as well as scientific management concepts, will set an example for Chongqing private enterprises in the same industry.

The arrival of Hankook will also solve the employment problem for thousands of people in Chongqing. “Chongqing's factory project plans to employ 3,700 people. The first phase of the project has attracted 1,400 people. Most of these workers are from Chongqing. When all four projects are completed, thousands of people will be promoted in Chongqing,” Zhang said.

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