Hankook’s Plans for Slovakia Plant Facing Hurdles

(Akron/Tire Review) Confusion over the state’s incentives is emerging just days after Hankook Tire announced its decision to build a new tyre plant in Slovakia. In return for its investment, Hankook made several requests, one of which was the construction of a speedway between Nitra and Hronský Benadik by 2009 and a four-lane road between Levice and Hronský Benadik by 2010.

But a Transportation Ministry spokesperson told the Slovak press that, while the ministry agreed to build a speedway between Nitra and Hronský Benadik, it had only planned to upgrade the road between Hronský Benadik and Levice. Additionally, the Transport Ministry told members of the media that construction of a four-lane road between Levice and Hronský Becndik depends on “available finances.”

Meanwhile, the Transportation Ministry claimed that the Slovak media is exaggerating the problem. An official agreement has not been made with Hankook, and no deal has been signed, said the Ministry.

It was reported that Hankook had asked the Slovak government to extend an investment package worth 21 per cent of its justified investment costs. EU regulations, however, state that an investment package should not exceed 15 per cent, and this has caused complaints from competitive tire manufacturers in the area.

Hankook is expected to start construction on the new plant during the first quarter of next year, with on-stream production slated for 2008.