Hankook Delays Tire Factory Construction

Several investors failed to realize their project amid the government efforts to encourage investment to absorb labor. Among those investors is the South Korean-based vehicle tire producer, Hankook Tire, which is delaying the construction of its third factory in Cikarang.

PT Hankook Tire Indonesia General Manager of Corporate Management Team Yoon Keung Yoong was unable to ascertain how long the project delay will occur. Yoon said the delay was caused by obstacles in the factory's consolidation process, including in China, which could no longer supply tire products to the US due to the trade war. Hankook has not found any alternative global markets to absorb its products, although the new factory is built to support global market expansion.