Tire Manufacturing Tops $3 Billion U.S. Plastics & Rubber Sector Projects for 2021
Researched by Industrial Info Resources (Sugar Land, Texas)--Tire manufacturers may be looking at a looming rubber shortage as a result of flooding and leaf disease in natural rubber-producing countries like Thailand and Indonesia, according to Bloomberg. However, Goodyear Tire & Rubber Company (NASDAQ:GT) (Akron, Ohio) Chief Executive Officer Rich Kramer told CNBC's Jim Cramer earlier this month that his company has enough rubber on hand to avoid supply problems. That will help as automotive demand is growing following last year's COVID-19 slowdown.
Tire manufacturers are ramping up production and projects as a result. Industrial Info is tracking 628 plastics and rubbers sector projects, worth nearly $3 billion, that are planned to kick off construction this year in the U.S.
Tire manufacturing makes up more than $1 billion of that amount. This includes Hankook Tire America Corporation's (part of South Korea's Hankook Tire & Technology group) $361 million Phase II expansion at the High-End Performance Radial Tires Plant in Clarksville, Tennessee. The project's construction start is planned for late 2021, with completion in early 2023. Subscribers to Industrial Info's Global Market Intelligence Industrial Manufacturing Project Database can click here for a detailed report.
By market region, the Mid-Atlantic leads in plastics and rubbers sector project spending, followed by the Southeast.
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