South Korean tire maker Hankook has postponed a planned HUF 89 billion investment at its plant in Rácalmás (central Hungary), business daily Világgazdaság reported on Thursday.
Responding to a query by the paper, the Hungarian Investment Promotion Agency (HIPA) confirmed that the fourth expansion at the plant, which started production in 2007, was postponed. Because the investment has not yet been implemented, a contract on state support for the expansion has not been signed, nor have any of the promised subsidies been paid, the agency added.
Company officials announced the investment in the spring of 2018. It was to have been completed by mid-2020. The state was to support the investment, which would create 150 jobs, with a grant of just under HUF 3 bln.
Világgazdaság speculated that Hungaryʼs tight labor market may have been a factor behind postponing the investment.