Hankook Signs 100 Million Euro Loan in Hungary - Tire Review Magazine

Hankook Signs 100 Million Euro Loan in Hungary

(Clacton, U.K./Tyres & Accessories) Hankook Tire has signed a term loan agreement for 100 million euros to finance its new manufacturing plant in Hungary. The agreement was signed on Apr. 4 in Budapest, Hungary.

Taking part in the signing ceremony were president of Hankook Tire European Regional Headquarters Suh Seung-hwa, vice president of finance Lee Jong-cheol, head of Hankook Tire Hungary Lee Eung-yong and representatives from 11 Korean and foreign banks.

Korea Development Bank (KDB) acted as lead manager in the syndicated loan of 11 domestic and foreign banks. The Hungarian unit of Hankook Tire signed the agreement and the loan will be guaranteed by the Hankook parent company.

KDB department head Choi Chul-seong said: “The loan term is relatively long at five years and despite various difficulties such as this being the first Euro financing for Hankook Tire, we were able to procure the equivalent of 185 million euros in loans. This is nearly double the figure initially hoped for by the company. It reflects the lenders’ high opinion of the future growth potential, technological capability and stable profit-making ability of Hankook Tire.”

In October 2005, Hankook signed an investment agreement with representatives from the Hungarian government at its Seoul headquarters. The new plant will be located on a 530-thousand square metre site in Dunaujvaros, 68 kilometres south of Budapest. The factory will produce UHP tyres for passenger vehicles and tyres for light trucks.

Construction on the factory is expected to begin in mid-May, with a goal of starting operations in the second half of 2007. When all work is completed in 2010, the Hungarian plant is projected to run at full capacity of 10 million units a year. A total of 500 million euros is expected to be invested in the plant.

You May Also Like

Goodyear Announces Cost Savings Actions

Goodyear said its Q4 results fell short of expectations given a significantly weaker industry backdrop.

Goodyear-HQ-Akron-Innovation-Center

The Goodyear Tire & Rubber Company announced cost savings actions in response to a challenging industry environment and cost pressure driven by inflation. Planned rationalization and workforce reorganization would result in an approximately 5% reduction in salaried staff globally or about 500 positions, the company said.

“Our fourth quarter results fell short of our expectations given a significantly weaker industry backdrop, particularly in Europe,” said Richard J. Kramer, chairman, chief executive officer and president. “While our businesses have performed at a high level through the volatility of the past several years, the uncertain near-term macroeconomic outlook and continuing impacts of inflation make these difficult actions necessary to position our business for future success.”

Hankook Tire Signs Multi-Year Partnership with Lamborghini

Hankook Tire will be the exclusive tire and technical partner for the 2023 Lamborghini Super Trofeo series.

Bridgestone Provides A/T, Winter Tires for Lamborghini Huracán Sterrato

Bridgestone said the tire is the world’s first-ever supercar all-terrain tire to feature run-flat technology.

Bridgestone-lambo-fitment
Complete Tire Repair Packages Build Customer Trust

Tire dealers know that offering a complete lineup of tire services can keep customers from seeking repairs elsewhere and add to the bottom line.

Off-Road Racer Jim Horne Joins Team Hercules

As a member of Team Hercules, Jim Horne will represent the brand as ambassadors at competitions and dealer and consumer events.

Other Posts

Maxam Tire Adds Two Sizes to MS405 Series

The Maxam MS405’s new sizes fit for loaders and dump trucks provide the OTR industry with more options.

Firestone Airide Tennessee Plant Recognized for Safety

This is the facility’s fourth STAR award, reflecting the company’s and
teammates’ commitment to a safe and healthy work environment.

Atturo Tire Offers Trail Hazard Protection for SXS and UTV Tires

The new program covers hazards encountered by riders on- and off-road at no additional charge.

Top Shops: Opportunities & Challenges in Today’s Tire Industry

What is one thing that scares you and one thing that excites you about the tire industry?

Tire Review Top Shop 2023 opportunities