European Commission approves €72m Hungarian state aid to Hankook Tire

Brussels – The European Commission has approved a €71.6 million (HUF28 billion) Hungarian state aid to Hankook Tire & Technology Co., it was announced 27 April.

The measure will support Hankook in setting up a truck and bus radial (TBR) tire factory Raclamas, in the ‘Central Transdanubia’ region of Hungary.

Launched in February last year, the €540-million project will see Hankook adding 800,000 units/year production capacity for TBR tires at the Hungarian facility.

The Commission announced in its statement that it “found that the measure is necessary and appropriate to contribute towards the economic development, competitiveness and increase of employment rate of the region.”

Furthermore, the aid has an incentive effect, said the Commission, noting that the beneficiary "would not have carried out the project in the European Economic Area without the public support."

As previously reported, the new facility is designed to produce Hankook’s 'premium products' for long-haul and mixed application, tires for electric commercial vehicles as well as other product types.

Set for completion in 2027, the new plant will employ ‘sustainable, renewable and recycled materials as well as 3D additive manufacturing for tread moulds.’

The plant in Raclamas, which started up in 2007, has a current production capacity of 17 million tires/year for passenger cars and light commercial vehicles.