Hankook unit to take out €100 mln loan from KDB
Monday, February 13, 2006, 16:53
Hankook Tire Hungary has mandated Korea Development Bank (KDB) for a € 100 million (Ft 25.1 billion) five-year loan, guaranteed by parent Hankook Tire Co, Reuters Basis Point reported on Monday. Hankook's Hungarian unit could use the loan to start the construction of a Ft 132 billion tire factory Hankook will build in Hungary. The plant is planned to start production in June 2007 and reach full capacity by 2010. The factory, built on a 56-hectare plot in Dunaújváros, south of Budapest, will turn out 10 million tires a year, according to plans, and will employ 1,500 workers at the start. Hankook will get Ft 15.8 billion in non-refundable state subsidies over a period of up to ten years as support for its planned investment. Total subsidies to Hankook, including a corporate tax break and support for retraining, could reach Ft 20 billion, Economy Minister János Kóka said last December.