Three States Lead in New U.S. Tire Plant Investments

Researched by Industrial Info Resources (Sugar Land, Texas)--The great bulk of investments in new U.S. tire plants, additions and expansions is in just three states, with Mississippi leading the way, followed by South Carolina and Tennessee. In all, Industrial Info is tracking active U.S. tire manufacturing capital projects with a total investment value of $3.95 billion, but investments in those three states make up 87% of that amount.

Click on the image at right for a graph detailing U.S. tire-manufacturing projects.

Mississippi stands head and shoulders above the rest, with three projects valued at $1.55 billion. Continental Tire the Americas LLC (Fort Mill, South Carolina) (part of Continental AG (Hanover, Germany)) is expected to begin site development this year near the city of Clinton for a $1.45 billion tire manufacturing plant. The plant will produce tires for passenger vehicles, light trucks and commercial vehicles. Construction of the 1 million-square-foot manufacturing complex is expected to begin in 2018, with completion by the end of 2019. The plant will bring 2,500 jobs to the area, according to the company.

South Carolina takes second place, with $1.07 billion in planned spending for three projects. In Richburg, Giti Tire USA Limited (Rancho Cucamonga, California) is building a $560 million passenger and light truck tire manufacturing plant and distribution center. Part of Singapore-headquartered Giti Tire, the company plans for the plant to be operational in 2017. It will bring in 1,700 new jobs in the next 10 years. This will be the first North American manufacturing plant for Giti.

Tennessee comes in third place, with two related projects worth $800 million. Hankook Tires Company Limited (Seoul, South Korea) is expected to start construction this year on the second phase of a high-end radial tire manufacturing plant in Clarksville, with completion in late 2017. The 1.5 million-square-foot plant will create 1,800 jobs. The two phases have a combined investment value of $800 million.

The investments are part of a trend of overseas tire companies making investments in the U.S. Some U.S. based tire manufacturers have chosen Mexico to make plant investments.

Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, five offices in North America and 10 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle™, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.