“Success in Europe means global success,” Hankook CEO Cho Choong Hwan said prior to the company’s July 14 groundbreaking ceremonies for the plant.
The factory is Hankook’s first in Europe, and it expects to boost worldwide revenue by 15% to $3 billion this year. The new plant is expected to produce 10 million tires annually by 2010.
Hankook said it plans to use the factory to help it become the world’s No. 5 tiremaker in six years, up from its current No. 8.
"It was a good step to set up a production base in Eastern Europe, especially if Hankook Tire can use the cost advantage as there will be a cost game in the entire industry," said Kim Hag Ju, an analyst at Samsung Securities Co. in Seoul.
The company also plans to set up an R&D unit next to the DunaÚjvÁros plant that will employ 80 people, Cho told the newspaper.
