“The fourth, 89 billion forint (EUR 284 million) phase of development of Hankook’s Hungarian plant will begin before the end of this year”, Minister of Foreign Affairs and Trade Péter Szijjártó said on Friday in Budapest at Hankook’s press conference.
The Minister told the press that the latest development phase will create 150 high added value-producing jobs, in view of which the Government is providing 2 billion 970 million forints (EUR 9.5 million) in funding towards the investment. “The company already operates an extremely extensive Hungarian supply network, and the outstanding quality of the products manufactured here is also proven by the fact that 98 percent of them are exported”, he said, highlighting the fact that from 2020 Hankook will no longer be importing tyres for trucks and buses to Europe from East Asia, but will be supplying the continent from its increased-capacity Hungarian plant.
Mr. Szijjártó explained that South Korea is Hungary’s third most important partner from within the East Asian region, with bilateral trade flow increasing by almost 20 percent to 1.7 billion dollars last year.
“It is worth encouraging as many major companies from the region to invest in Hungary, because these days capital and knowledge are not just flowing from West to East, but East Asia is dominating technological advancement and several areas of the global market”, the Minister stressed.
At the press conference, Member of Parliament for the Dunaújváros area Dénes Galambor (Fidesz) called for the training of professionals to enable the plant, which already provides work to almost 3300 people, to take on new staff. He highlighted the fact that as a result of increasing turnover Hankook is paying more and more local business tax, and accordingly is making a significant contribution to the development goals of Rácalmás and Dunaújváros, in addition to which it also supports local issues and sponsors local organisations and sports associations.
Hankook’s Chief Operation Officer for Europe Kim Han-Jun told the press that the company has invested 880 million euros so far in its Hungarian plant, which has manufactured 120 million tyres to date. “Hungarian production has significantly reinforced Hankook’s market positions in Europe, and supplies the continent’s largest car plants with tyres, including Audi, Opel, BMW, Fiat, Ford, Seat, Skoda, Porsche and Volkswagen”, he said.
Mr. Kim added that Hankook has also reinforced its positions on the truck and bus tyre market, and it is this increasing demand that justified the further expansion of the company’s Hungarian plant.
The new facility will begin operations in mid-June of 2020 with an annual capacity of 550 thousand tyres. The Director called the expansion of Hankook’s Hungarian plant a milestone in Hankook’s history and welcomed the fact that the tyres manufactured here are exported all over the world.
The plant in Rácalmás began production in 2007 as Hankook’s only European facility. The first two phases of the investment project cost a total of 540 million euros, while the third phase, which was completed in spring 2015, cost 313 million euros. The plant produces 19 million tyres-a-year. Hankook is the world’s 7th largest tyre manufacturer, distributes its products in 180 countries and employs 22 thousand people.
(MTI)
