Hankook Continues Slovakia Negotiations

(Akron/Tire Review) All is not yet lost for Slovakia in its bid to land a new tyre plant from Hankook Tire Co. The South Korean tyre manufacturer has made a counterproposal for government aid to support its planned 500 million euro tyre plant.

Slovakia Prime Minister Mikulas Dzurinda reportedly met with Hankook representatives late last week at Hankook’s request. Hankook is reported to have lowered its request for state assistance by 9.79 million euros. The meeting came just two days after Slovakia’s cabinet ministers rejected an investment package that included infrastructure improvements in the area surrounding the proposed plant.

However, Hankook’s aid request still well exceeds the packages offered to PSA Peugeot Citroen or Kia/Hyundai for their respective plant investments. Hankook vice president Young Soo Woo met with Mr Dzurinda and offered to decrease the company’s request for state assistance from 21 per cent to 19 per cent of the company’s total investment. Hankook originally sought – and was granted – government aid totalling 110 million euros, a plan that was roundly rejected by cabinet ministers.

Mr Dzurinda said: “I can, for sure, say the issue is not closed. The Korean side has offered [to take] some steps towards us. We just have to think about them and calculate it.”