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Hankook plans temporary shutdown in Hungary

Korean tire maker Hankook plans a three-day, temporary shutdown at its plant in Hungary to manage a build-up in inventories, business daily Világgazdaság said on Friday, Hungarian news agency MTI reports.

Hankook Tire Magyarország confirmed the three-day shutdown when asked by Világgazdaság but did not respond to the paperʼs query about a possible 80,000- to 100,000-unit drop in output.

The plant turns out about 19m units a year, making it one of Europeʼs biggest producers of tires.

According to paper, the company explained the shutdown in a letter sent to workers citing declining demand caused by the global slowdown as well as unseasonably warm weather. 

The paper noted that Hankook has used periodic, temporary shutdowns at plants in Korea and China to adjust to market demand.

No layoffs will be made at the plant in Rácalmás, south of the capital, Világgazdaság said.