Published: November 24 2023
Hankook Tire, the world's seventh largest tire manufacturer, has announced plans to invest approximately HUF 210 billion in their plant in Rácalmás, Hungary. This investment will create 450 new jobs and focus on the manufacturing of tires for trucks and buses.
Hankook Tire's expansion in Rácalmás
Hankook Tire's plant in Rácalmás, Hungary has been in operation since June 2007 and has experienced continuous growth and expansion. With this latest investment, the plant's annual production capacity will reach 19 million tires. The company already employs around 3,300 people in Hungary and this expansion will bring them closer to full employment.
Government support and economic outlook
The Hungarian government will provide subsidies for the project, the details of which will be disclosed after obtaining approval from the European Commission. Minister Péter Szijjártó highlighted the success of Hungary's foreign economic strategy in attracting investments from various geographical directions, including the East. He emphasized that the country aims to become the most competitive investment promotion system in Europe, with the value of investments expected to double last year's figure.
Positive economic growth in Hungary
Despite global economic turbulence, Hungary's economy has remained on a growth path. The country's success in competition for investments is evident from the tire manufacturing sector. With Hankook Tire's investment and other ongoing automotive projects, Hungary is well-positioned for continued positive economic growth.
Hankook Tire's financial performance
In the third quarter of 2023, Hankook Tire reported sales of approximately EUR 1.64 billion and an operating profit of EUR 277.4 million. This represents a 1.8 percent increase in sales and a significant 106 percent increase in operating profit compared to the same period last year. The company's strong financial performance further supports their decision to invest in the Rácalmás plant.
Questions & Answers
What is the investment being made by Hankook Tire in Hungary? Hankook Tire is investing approximately HUF 210 billion (EUR 553 million) in their plant in Rácalmás, Hungary.
How many jobs will be created as a result of Hankook Tire's investment? Hankook Tire's investment will result in the creation of 450 new jobs in Rácalmás, Hungary.
What type of tires will be manufactured at the Rácalmás plant? The Rácalmás plant will manufacture tires specifically for trucks and buses.
How many people does Hankook Tire currently employ in Hungary? Hankook Tire currently employs around 3,000 people in Hungary.
What is Hungary's foreign economic strategy? Hungary's foreign economic strategy allows it to attract investment from all geographical directions, including from the East.
What is the goal of Hungary's investment promotion system? The goal of Hungary's investment promotion system is to become the most competitive in Europe.
What is the annual production capacity of Hankook Tire's plant in Rácalmás? The annual production capacity of Hankook Tire's plant in Rácalmás is 19 million tires.
When did Hankook Tire's plant in Rácalmás start operations? Hankook Tire's plant in Rácalmás started operations in June 2007.
How much did Hankook Tire report in sales for the third quarter of 2023? Hankook Tire reported sales of approximately EUR 1.64 billion for the third quarter of 2023.
How much did Hankook Tire report in operating profit for the third quarter of 2023? Hankook Tire reported an operating profit of EUR 277.4 million for the third quarter of 2023.