Hankook to expand in Hungary

BUDAPEST, Hungary—Hankook Tire Co. Ltd. is moving ahead with the third phase of the company’s expansion of its plant in Racalmas, Hungary. The South Korean tire manufacturer said it is committing $400 million over two years to boost capacity for car and light truck tires at the site by 42 percent.

The new project will increase the company’s investment in the factory to more than $1.1 billion. The expansion will boost annual capacity to 17 million tires, Hankook said, and create another 950 jobs at the plant in central Hungary. Work on the project will start in June, with initial production expected to begin by mid-2014 before reaching full capacity in 2015.

“As a key investor in Hungary and an important market player in the European automotive industry, we will continue to explore opportunities to meet the growing demand of our consumers, offering state-of-the-art tire technologies,” said Seung Hwa Suh, Hankook vice chairman and CEO of Hankook Tire. The plant opened in 2007 with an initial annual capacity of 6 million tires.