Hankook to set up production unit in Hungary
Monday, October 24, 2005, 12:28
Hankook Tire Co., South Korea's largest tire maker, said it will set up a production unit to make and sell rubber tires in Hungary, chosen among three nations being considered for its expansion in eastern Europe. Hankook Tire will reveal details later, the Seoul-based company said in a filing to the Korea Stock Exchange today. Hankook Tire, which has factories in China, has been considering Hungary, the Czech Republic, and Poland to set up a $600 million factory as it wants to expand overseas production in Eastern Europe, taking advantage of lower taxes and cheaper labor costs. For now, Hungary is our preferred negotiator, spokesman Kim Seong Joo said in a phone interview today. Talks will be held between our newly set up unit and the Hungarian government.