BUDAPEST, Hungary (Nov. 16, 2007) — Hankook Tire Co. Inc. will receive up to $80 million from the Hungarian government toward the construction of a tire plant in the country, according to newly released documents.
The Hungarian Ministry of Economy and Transport said all grants are based on a project cost of $660 million, and any reduction in that investment figure would lead to a pro-rata reduction in grant aid.
Hungary committed to provide state and regional aid equal to 12.09 percent of the eligible costs, up to a maximum of $80 million.
The ministry also said it would make every effort to help with permits and legal issues. It adds that if changes in the law are required, then the ministry will seek to effect those changes.
Hankook Tire Hungary Ltd. opened the plant in Dunaujvaros in July with a nameplate annual capacity of 10 million tires. Employment at start-up was 810 and is projected to rise to 1,500 at full capacity.