Hankook set to start European truck tire production

Hanover, Germany – Hankook is set to start truck and bus radial (TBR) tire production at its Racalmas, Hungary plant in October, following a €540-million expansion of the site.

The tire maker unveiled the first 'pre-production tire' from the new line at IAA Transportation in Hanover 14 Sept, marking its first TBR production in Europe.

The newly built facilities have a capacity to produce over 800,000 units of TBR tires per year and will initially focus on 22.5-inch tires.

Hankook has been supplying the European market with TBR tires produced in Korea and China.

The Hungarian expansion, said the Korean tire maker, will "increase the security of supply and shorten delivery times," while reducing logistics distances from Asia.

"The central location of the facilities in Hungary and their proximity to the core European markets is a key locational advantage," said Jongho Park, president and COO of Hankook Tire Europe.

The investment represents the fourth expansion phase at Racalmas, where Hankook has invested €856 million since 2007.

The previous three phases brought annual capacity for passenger car, SUV and light commercial vehicle tires to up to 17 million units.

As part of the latest project, Hankook said it constructed 66,000 square metres of new production and ancillary buildings and has created more than 450 jobs.

The new facilities feature "a higher level of automation," according to Ho Taek Lim, VP and managing director of the Racalmas plant.

Automated logistics systems cover operations from semi-finished products through to tire storage, supported by automated guided vehicles, logistics management and "real-time tracking systems."

Hankook said the line also employs energy-efficient equipment and "modern process control systems" to reduce energy and water consumption.

The tire maker said it will expand production beyond the initial 22.5-inch range to cover a broader portfolio, as capacity ramps up and additional specifications are approved.