Six months after a devastating fire wreaked havoc on Hankook Tire & Technology's tyre factory in Daejeon, the company has announced the partial resumption of its production operations. As of 1 September 2023, tyre production has been restarted at the site's Plant 1 facility, according to a disclosure made to the Korea Exchange (KRX).
The fire, which occurred on 12 March, led to a significant halt in production, causing a financial setback for the company. Hankook Tire reported a staggering loss of KRW 1,167,739,420,439 (£700.4 million, US$873.2 million) due to the suspension. This figure accounts for 16.4% of the company's total sales in the most recent fiscal year.
While the news of the partial resumption is a positive development, the company was keen to clarify that only Plant 1 is operational. The disclosure highlighted that Plant 2 at the Daejeon site was "destroyed by fire" and remains non-operational.
The incident at the Daejeon factory not only impacted Hankook Tire's production capabilities but also had significant financial implications. The company's transparency in sharing the financial toll of the fire underscores the magnitude of the incident and its effects on the tyre manufacturing giant.
As Hankook Tire takes steps towards recovery, the industry and consumers alike will be watching closely to see how the company navigates the challenges ahead and rebuilds its operations in Daejeon.
