Hankook Chooses Slovakia

Hankook Tire Co has chosen Slovakia as the location of its new Eastern European factory, Slovakia’s economy minister, Pavol Rusko, is quoted as saying. The company, now plans to make an investment worth around 500 million euros in the country.

After months of speculation and a veritable game of poker between Hankook’s management and the nations competing for the company’s investment, the South Korean management has reportedly decided on a site near the western Slovakian town of Levice.

According to the Slovak Spectator, the South Korean company will occupy an area of 53 hectares in Levice. Slovakia will support the investment with incentives of 21 per cent of the investment, more than 100 million euros. The tyre plant is expected to create approximately 1500 new jobs in the region. Another 1,000 to 1,500 jobs are likely to be indirectly created due to the investment.

The cabinet also promised Hankook that the motorway connecting Nitra and Hronský Benadik will be completed by the end of 2009 and a four-lane dual carriageway from Hronský Benadik to Levice by 2010, the Slovak Spectator reported. Hankook is expected to start production in three years time when the Levice plant will double as the company’s European headquarters.

The news follows the company’s latest round of negotiation with authorities in Slovakia, Hungary and Poland. Shortly before news of the decision emerged, the mayor of Levice pledged to extend Levice-Gana Park to the manufacturer.

After French PSA Peugeot Citroën and South Korean firm KIA, Hankook Tires will be the third largest green field investor in Slovakia, the daily SME reported.