Hankook Tire will create 450 new jobs in Rácalmás (central Hungary), where the South Korean company will manufacture tires specifically for trucks and buses, with an investment of approximately HUF 210 billion (EUR 553 million), Minister of Foreign Affairs and Trade Péter Szijjártó announced on Thursday.
The minister said that the company, which is the world’s seventh largest tire manufacturer and already employs around 3,000 people in Hungary, will bring another HUF 210 billion (EUR 553 million) worth of investment to the country, creating 450 new jobs and bringing it closer to full employment.
The new plant in Rácalmás will produce around 800,000 heavy-duty tires for trucks and buses every year.
The government will provide subsidies for the project, the amount of which will be disclosed only after the European Commission’s approval, he added.
Minister Szijjártó pointed out that in the midst of the recent global economic turbulence, the Hungarian economy has been able to remain on a growth path. The main reason for this, he noted, is that the government’s foreign economic strategy allows it to attract investment from all geographical directions, including from the East.
He stressed that South Korean companies are the fourth largest investors in Hungary today, and the newly announced investment will further expand the presence of these companies.
The minister stressed that competition for investment in the world remains fierce, but Hungary is successful in this field. “We have set ourselves the goal of becoming the most competitive investment promotion system in Europe. We have achieved this goal,” he emphasized. “This can be seen from the fact that at the end of this year, based on our current calculations, the value of investments will double last year’s figure, i.e. EUR 13 billion, which will of course be another record for the national economy,” he concluded.
Hankook Tire’s world-class European plant rolls 19 million tires off the production line every year. The company in Rácalmás started operations in June 2007, and has been growing and expanding ever since. It now employs around 3,300 people and produces tires for cars, SUVs, and light trucks. The third phase of investment was completed in spring 2015, bringing the Hungarian plant’s annual production capacity to 19 million.
In the third quarter of 2023, the South Korean company reported sales of approximately EUR 1.64 billion and an operating profit of EUR 277.4 million. Sales increased by 1.8 percent and operating profit by 106 percent compared to the same period last year.
Via MTI, Featured image via Facebook/Hankook Tire Hungary