Hungarian Hankook plant to receive state aid

The European Commission has approved the allocation of Hankook a sum of 71.6 million euros as a support measure for the project to launch the production of truck and bus tires with a capacity of 800,000 units per year at the plant in Rácalmás (Hungary).

The Hungarian plant of Hankook was opened in 2007 and is currently capable of producing up to 17 million tires for passenger and commercial vehicles. The project to establish truck tire production was launched in February last year, and its total cost is estimated at 540 million euros.

According to the EC statement, state support for the tire company was deemed necessary to promote economic development and competitiveness in the region, as well as to increase employment. The Commission also emphasized that Hankook "could not have implemented the project in the European Economic Zone without state aid".

It is expected that the new production lines will be launched next year, and the plant will produce, among other things, truck tires for long-haul transportation, mixed use, electric transport, etc. Hankook has also previously stated that they intend to use eco-friendly materials from renewable sources and recycled materials at the enterprise, as well as manufacture molds using 3D printing.