Bae, Kim & Lee LLC (“BKL”) advised Hankook Tire Co. Ltd. (“Hankook Tire”), the world’s seventh-largest tire company by sales, in connection with an investment incentive agreement and a tax incentive agreement with the state government of Tennessee to build its first tire manufacturing facility in the United States. This new tire plant will be located in Clarksville, Tennessee and, upon full completion, is expected to produce about 11 million tires annually. The incentive agreements were signed on October 14, 2013.
Founded in 1941, Seoul-based Hankook Tire is one of the fastest growing tire companies in the world. With approximately 20,000 employees and five research & development centers, Hankook Tire produces high performance radial tires at its seven manufacturing facilities in Korea, China, Indonesia and Hungary. The approximately US$800 million (approximately KRW 854.5 billion) advanced manufacturing facility is expected to be 1.5 million-square feet and will be the company’s eighth production facility producing high-end performance tires. Construction for this U.S. plant is expected to commence by the end of 2014 and actual tire production scheduled to begin in 2016.
BKL advised Hankook Tire on a wide range of matters in connection with project site due diligence, creation of an investment structure, negotiations with the State of Tennessee and other local governments regarding a variety of matters including the incentive agreements and discussions with a number of utilities; and worked closely with and managed local advisors in the US. Hankook Tire was advised by Miller & Martin PLLC regarding U.S. law matters, and international accounting firm KPMG USA regarding tax matters.
The BKL team was led by partner Joonki Yi from the outbound M&A team in BKL’s Corporate Practice Group, and included associate Daehyun Baek and foreign legal advisor Hyun Min Park.
