Hankook postpones plant expansion in central Hungary
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.