Korea’s big 3 tiremakers bet big on Europe

Hankook Tire & Technology headquarters in Pangyo, Gyeonggi Province / Courtesy of Hankook Tire & Technology

Major Korean tire manufacturers are accelerating their investments in Europe, drawn by the region’s strategic advantages for timely tire supply to local customers. The move comes amid surging demand for high-margin, value-added premium tires, which are increasingly favored in the European market.

Hankook Tire, Korea’s largest tire maker, is expanding a production line at its Racalmas factory in Hungary to produce an additional 800,000 commercial vehicle tires annually by 2027. Once completed, the factory’s total production capacity will reach 18.8 million tires.

Europe is Hankook Tire’s largest market, representing 45 percent of the company’s total sales last year. The firm’s tire business posted a third-quarter operating profit of 519.2 billion won ($350 million), up 10.4 percent from a year earlier. Hankook Tire attributed the double-digit earnings growth to strong sales of high-margin tires over 18 inches, particularly from European customers.

Kumho Tire's R&D center in Yongin, Gyeonggi Province / Courtesy of Kumho Tire

Kumho Tire is also moving to expand its investment in Europe, recently confirming plans to build a new manufacturing facility in Opole, a city in southwestern Poland. The company will invest 860 billion won in the plant, which is expected to have an annual capacity of six million tires when it begins operations in August 2028. According to DS Investment & Securities, the facility is projected to generate annual sales of 530 billion won once fully operational.

Europe has also become a major profit driver for Kumho Tire, with sales in the region rising sharply in recent years. The company recorded sales of 970 billion won in 2023, which jumped to 1.2 trillion won in 2024. This year, Kumho Tire is expected to generate around 1.4 trillion won.

“Europe’s strategic importance will continue to grow to Korean tire makers, as they can rapidly absorb soaring demand for value-added tires, such as ones for electric vehicles (EVs), by expanding manufacturing capacity there,” an official from the industry said. “They can also cut unnecessary logistics costs through localized production.”

Nexen Tire's Nexen UniverCITY research institute / Courtesy of Nexen Tire

Nexen Tire is also going all-out to boost production capacity for its factory in Zatec in the Czech Republic. The company established the plant in 2019 and completed its expansion last year, enabling the facility to produce 11 million tires annually.

The move is intended to proactively meet growing demand from its European auto clients.

“Tire firms bet bigger on Europe, as the market has more growth potential than any other major markets, such as the United States, as European customers are rapidly embracing EVs and the region is widely considered to have less trade risk than the world’s largest economy under the Donald Trump administration,” the official said.