Hankook Tire to Expand the Capacity of its Hungarian Plant
- First tires rolling off the production line in the new unit built as part of the second phase investment of EUR 230 million
- The launch of the new manufacturing unit will boost Hankook's European production volume
- Investment in the Hungarian plant will create over 700 new jobs
- Hankook is strengthening its UHP and LTR product portfolio
November 22nd, 2010 (Seoul, Korea) - Hankook Tire, currently the seventh largest and one of the fastest growing tire companies in the world, announced that the new unit of Hankook Tire Racalmas plant, located in Hungary, has kicked off its operations. The construction of the plnat's second phase started in September 2009 and will reach its 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 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 for its new European production site in Hungary, with total investments of EUR 550 million.
In line with its dynamic growth, Hankook Tire Hungary is also hiring 700 new employees in 2010 and 2011. Investments are made for the education of the next generation's rubber professionals to meet the needs for skilled workers, in collaboration with the the Hungarian Labour Office that 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 Mr. Seung Hwa Suh, Vice Chairman & 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.
About Hankook Tire Co., Ltd
Hankook Tire (Vice Chairman & CEO: Seung Hwa Suh) is the seventh largest and one of the fastest growing tire manufacturers in the world. It produces innovative, superior quality and high performance radial tires for passenger cars, 4x4s, SUVs, light trucks, campers, trucks, buses and motor sports. It invests approximately five percent of its revenue in research and development and develops innovative technologies through its five global R&D Centers, meeting regional customer demands and enhancing customer satisfaction. Selling in over 180 countries around the world, the company has more than 14,000 employees. Approximately 70 percent of its revenue comes from growing overseas sales.
For more information, please visit Hankook Tire's global web site at www.hankooktire.comCorporate Communications Team, Hankook Tire
InComm Brodeur (PR Agency in Korea)