Hankook Tire "Participation in Blockchain-Based Sustainable Natural Rubber Project"

[Asia Economy Reporter Changhwan Lee] Hankook Tire & Technology announced on the 1st that it will participate in the sustainable natural rubber project "PROJECT TREE," which utilizes a blockchain-based traceability system.

PROJECT TREE is the first project to apply blockchain to the natural rubber industry, enabling traceability from the raw material supply of natural rubber to manufacturing and sales history. The international trading company ITOCHU is leading the project.

Hankook Tire is participating in PROJECT TREE, which uses the blockchain-based traceability system developed by ITOCHU, aiming to improve sustainability across the entire value chain.

Natural rubber is a major raw material for tires, with about 70% of the world's natural rubber consumption used in tires. However, about 85% of natural rubber production is supplied from small-scale farms in Southeast Asia, such as Thailand and Indonesia, posing challenges for the tire industry to track and resolve sustainability issues such as deforestation and poverty that may occur during production and procurement processes.

Accordingly, PROJECT TREE utilizes a smartphone app linked to a system that records information such as transaction dates and locations with Aneka Bumi Pratama, one of Indonesia's largest natural rubber processors, allowing only natural rubber harvested outside forest conservation areas to be supplied to PROJECT TREE supporting manufacturers including Hankook Tire. It also enables regulation of wildlife habitat preservation and peatland (wetland) farming.

Hankook Tire plans to sell tires manufactured through PROJECT TREE in partnership with European Tire Enterprise Limited (ETEL), the largest tire distributor in the UK market operating large-scale car maintenance service brands such as "Kwik Fit" and "Stapletons."

A portion of the proceeds from sales of PROJECT TREE tires in the UK will be used for sustainability support activities such as providing farming tools, fertilizers, education, and incentives to small-scale farms, collectors, and local merchants who cooperate to record transactions and ensure traceability.