Rácalmás, Hungary – South Korean tire-maker Hankook Tire has announced plans for a major expansion at its tire production unit in Rácalmás, to add truck & bus radial tire production capacity in Europe.
Construction work on the €290-million project would start in June, while production is expected to start two years later, the In the tire maker said 23 March.
The project involves a new truck tire production unit, and marks the fourth expansion of the Hungary plant, which opened in 2007.
Once completed, the project will provide an added production capacity of over 550,000 medium and heavy truck and bus tires per year.
The added capacity was part of its long-term strategy to cater to European market demands in both the OE and replacement truck and bus tire sector, the Seoul-based group said.
In recent years, Hankook has won OE supply agreements with leading truck and bus brands, including Mercedes-Benz and trailer maker Schmitz Cargobull.
The company is currently supplying the European truck tire market mainly from one of its Korean factories.
“After seeing a significant and stable increase in demand over the years, the decision was made to establish a Europe-based truck and bus tire production facility at the company's Hungarian factory,” the company noted.