SEOUL, Korea – Hankook Tire’s Tire RÁcalmÁs plant located in Hungary has kicked off its operations. Expansion at the plant began in September 2009, and is expected to reach full capacity by the second half of 2011. When the second investment phase is completed, the plant will more than double its current capacity, manufacturing up to 12 million Hankook tires each year.
The tiremaker says demand for Hankook tires has been growing steadily and dynamically around the world, particularly in Europe. This increase in demand has allowed Hankook Tire to invest further EUR 230 million (approximately $310 million) for its new European production site in Hungary, with total investments of EUR 550 million ($720 million).
Hankook Tire Hungary is also hiring 700 new employees in 2010 and 2011. The company has collaborated with the Hungarian Labour Office, which offers an accredited tire manufacturing training course. Upon completion of the course, all participants will automatically be qualified to be hired by Hankook Tire.
“Thanks to the expanding investment in our ultra-modern factory in Hungary, we can satisfy our customers in the growing European market by setting the highest quality standards. We are glad that the construction and preparations for the new production unit are on track, allowing us to commence our operations sooner than scheduled,” said Seung Hwa Suh, vice chairman and CEO.
In response to the increasing demand for winter tires this season and an overall shortfall for these products in the market, the new unit is currently focused on manufacturing winter as well as all-season tires. The production portfolio includes the most popular Hankook Winter Icebear W440 tire, which has been awarded the rating of “highly recommendable” by the German automobile club, ADAC. The successful Hankook Optimo 4S, a three-time champion winning the tests given by Germany’s biggest car magazine Auto Bild, will also be produced at the site.
Due to the growing demand from its OE and replacement market in Europe as well as around the world, the new production unit will play a future key role in Hankook’s strategy, especially in the manufacture of ultra high performance (UHP) tires for passenger cars and light truck tires (LTR), since the new production unit is equipped with the most cutting-edge technology. Once the full capacity is achieved later next year, Hankook Tire’s Hungarian plant will further increase its present product range of more than 500 different specifications.
