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State aid to Hankook totals $73 mln

Hankook Tire Co., which will build its first European plant in Hungary, is getting Ft 15.88 billion ($73.5 million) in state aid, business daily Világgazdaság reported, citing an Economy Ministry official. Hungary's government offered the aid in subsidies and tax rebates to lure Hankook's €525 million ($623 million) investment, the paper said, citing Ábel Garamhegyi, state secretary at the Economy and Transport Ministry. Hankook, South Korea's largest tire maker, said Oct. 24 it will set up production to make and sell rubber tires in Hungary after dropping Slovakia as the preferred site of the plan. The company started looking for a new location after the Slovak government in July rejected aid for the factory. Hungary has given out a total of Ft 53 billion in state aid to 11 companies, including Suzuki Motor Corp. and Electrolux AB, this year and last, Világgazdaság said.