SEOUL, South Korea —Hankook Tire & Technology Co. Ltd. is planning to idle production at its tire plants in Clarksville, Tenn., and Raclamas, Hungary, starting March 30. The decision, the tire maker said, helps to protect the health and safety of its employees and also comes in response to market demand, which has been impacted by the coronavirus pandemic.
The move will affect 1,200 hourly workers at the plant, which Hankook opened in 2017. The 13-year-old plant in Hungary employs around 1,800 people.
Hankook said its U.S. warehouses, including the one located at the Clarksville plant, will continue to operate, supported by Hankook plants in Asia, if necessary, by providing production assistance, shipment and supply of raw materials.
The company does not anticipate any interruption in sales.
Plants in China, Indonesia and South Korea are not affected by the closures.
Hankook Tire & Technology Ltd. recently disclosed plans to buy back stock and increase its dividend.