Hankook joins NR blockchain traceability, sustainability project

SEOUL—Hankook Tire & Technology is taking part in a project designed to use blockchain technology for traceability and sustainability of natural rubber.

Organized by Japanese trading company Itochu Corp., Project Tree—which was launched two years ago—now involves Hankook as well as Indonesian NR processing company, PT Aneka Bumi Pratama.

The project employs a blockchain traceability technology developed by Itochu Techno-Solutions Corp., which uses a smartphone app to record information such as date and location of transactions, the Korean tire maker announced Dec. 1.

Through this project, NR produced from outside of conservation areas can be supplied to Hankook.

In addition, smallholders without smartphones or bank accounts will be provided with farm tools, fertilizers and training for better productivity and sustainable practices as well as cash incentives that will be paid out "under close supervision."

As part of the initiative, Hankook said it would distribute tires manufactured through the project in the United Kingdom market through a partnership with tire distributor European Tyre Enterprise Ltd. (ETEL) which owns Kwik Fit and Stapletons.

The tire maker said it would use part of the tire sales to fund incentives for upstream supply chain stakeholders such as smallholders, collectors and local dealers "who cooperate to record their transactions and ensure traceability."

"As demand for natural rubber is expected to continue to grow, all stakeholders in the supply chain, including smallholders, tire manufacturers and end-users, are expected to fulfill their responsibilities," said Sooil Lee, president and CEO of Hankook Tire & Technology.

Hankook Tire, he added, "will definitely take the lead" in fostering sustainability in procurement of raw materials.