South Korean tyre manufacturer Hankook has expanded its European plant in Rácalmás (Hungary) and will be producing truck and bus tyres in Europe for the first time from this October. The company has invested EUR540 million in the plant expansion. The newly built production facilities are set up for an annual output of more than 800,000 units. Recently at the IAA Transportation, Hankook officially presented the first pre-production tyre manufactured at its new European truck and bus tyre production facilities.
Jongho Park, President and COO of Hankook Tire Europe, stresses the strategic importance of the new production facilities for Hankook in Europe: “The expansion of our European production plant with a new line for truck and bus tyres is yet another key milestone for Hankook in Europe. The central location of the facilities in Hungary and their proximity to the core European markets is a key locational advantage. It will enable us to supply our European customers with premium commercial vehicle tyres even more reliably and quickly, and to respond to their needs with the greatest possible flexibility.”
Until now, Hankook has manufactured its truck and bus tyres for the European market exclusively in Korea and China. With the new production line in Hungary, Hankook significantly shortens part of its delivery routes. This will increase the security of supply and shorten delivery times. At the same time, CO2 emissions in logistics decrease because long transport routes from Asia are partially eliminated.
Europe is one of the most important markets for Hankook, accounting for around 45 per cent of the company’s global sales. Since 2007, Hankook has already invested approximately EUR856 million in the Hungarian production site in three expansion stages. The third stage was completed in spring 2015.
Now, the Rácalmás plant has the capacity to produce up to 17 million tyres for passenger cars, SUVs and light commercial vehicles each year. The now fourth expansion stage includes the new truck and bus tyre line with a further EUR540 million invested. Since 2024, around 66,000 sq m of new production and ancillary buildings have been constructed as part of this expansion project.
Hankook is creating over 450 new jobs locally with the new production line. Globally, Hankook maintains eight production sites with a capacity for up to 100 million tyres per year and has approx. 20,000 employees.
“This expansion project was one of the largest industrial development projects ever undertaken at the site in Hungary,” says Ho Taek Lim, Vice President and Managing Director of the plant in Rácalmás. “The new truck and bus tyre production facilities will transform the plant into a comprehensive production site of significantly greater complexity and with a higher level of automation.”
The new production facilities are designed and built as a highly automated plant. Automated logistics systems support the entire process, from semi-finished products right through to tyre storage. Autonomous automated guided vehicles (AGVs) as well as logistics management and real-time tracking systems control the flow of materials and warehousing. Automated testing systems ensure consistent product quality and high production efficiency.
The new production plant will initially focus on 22.5-inch tyres for trucks and buses. As capacity increases and further specifications are approved, Hankook will gradually extend the production line-up to cover a broader range of commercial vehicle types and customer requirements.