SEOUL, Jan. 29 (Korea Bizwire) — Hankook Tire Manufacturing Co., the world’s seventh-biggest tiremaker by sales, said Monday it will supply tires to all Scania’s construction vehicles.
Hankook Tire began to supply original equipment (OE) tires to the European commercial vehicle company in November 2016. In its latest deal, the tiremaker will supply OE tires to the Scania ‘XT’ truck, the company said in a statement.
Supplying OE tires to car manufacturers does not generate much revenue for tiremakers but securing big companies as clients helps improve their brand images and raise product prices down the line.
For tiremakers, it is more profitable to sell replacement equipment (RE) tires in after-sales markets.
To enhance its global brand image, the tiremaker has shipped products to nearly 50 foreign carmakers, such as Audi, BMW, Mercedes-Benz and Porsche.
Last year, Hankook Tire sold 99 million tires produced at its eight plants — two in South Korea, three in China, one in Hungary, one in Indonesia and one in the United States.
30 percent of Hankook Tire’s total sales come from OE tire sales, with the remaining 70 percent coming from RE tire sales.