Hankook to Re-select European Plant Site

Hankook Tire Co, says it will select a new site for its proposed European plant by November, and is aiming to break ground next spring. According to Asian news sources, Hankook’s chief executive Cho Choong-hwan reiterated the plan to begin European production in 2007 during his speech at an international automotive industry forum, stressing the strategic importance of the European market.

“A local production plant will enable us to supply competitive products more quickly in Europe. We will seek customer satisfaction through a consumer-friendly supply system,” Cho said at the Equip Auto Global Forum held in Paris on Friday.

Hankook Tire had announced early this year that it will spend 500 million euros ($650 million) in building a factory capable of producing 5 million tyres annually in Eastern Europe.

The project had even selected Slovakia as its preferred bidder, however the company now appears to have walked away from Slovakia’s bid due to disagreements about how much support the government could offer. The Czech Republic, Hungary and Poland have now been named as potential countries.

According to the Korean Herald Europe accounts for 37 per cent of the Hankook’s total sales. The world’s ninth largest tyre maker is also said to control 47 per cent of Korea’s tyre market.