BRUSSELS (June 26) — The European Commission has OK'd $116.5 million in support of South Korea's Hankook Tire Co. Ltd. planned tire plant in Hungary.
The aid will be paid in the form of grants by the Ministry for Economy and Transport and the Ministry for Employment and Labour, and also as a tax relief awarded by the Ministry of Finance, the EC said.
Hankook is planning to build a $535 million, 5.69 million-sq.-ft. passenger tire factory in Dunaujvaros, Hungary, to supply its growing business in Europe. Hankook earlier project its sales in will hit $400 million this year.
The new plant is scheduled to start production in 2007 and have the capacity to produce 10 million tires annually by 2010. It will employ 1,500, Hankook said.