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September 24, 2010 02:00 AM

Hankook may add truck tires to Hungary plant

Crain News Service
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    HANNOVER, Germany (Sept. 24, 2010) — Hankook Tire Co. Ltd. plans to add truck tire capacity at its 3-year-old plant in Hungary “in the medium term,” but the South Korean company has disclosed no specifics regarding scale or timing.

    Hankook disclosed the intent — “Further expansion of the facility and the inclusion of truck tyre production are planned for the medium term.” — in press releases prepared for the IAA Commercial Vehicle exhibition in Hannover.

    Hankook said its European truck tire sales grew 1 percent in 2009, when the replacement market fell by almost 20 percent, and expects growth of about 6.5 percent this year. This contrasts with European replacement truck tire growth in the year to August of more than 25 percent.

    Hankook said it holds a 19.5-percent share of the United Kingdom market for truck tires, along with 5 percent in Germany, 15 percent in Ireland and Sweden and about 12 percent in Finland.

    Hankook is in the midst of a $300 million investment package at the plant, in Racalmas, Hungary, to double annual capacity for passenger and light truck tires to more than 10 million units. Employment stands at about 1,300 at the plant, which is capable of producing 15,000 tires daily in more than 300 different sizes, Hankook said.

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