The European Commission has officially approved state aid from Hungary for Hankook Tire, with a funding grant of 71.6 million euros (about 570 million RMB), to boost its new commercial tire manufacturing project in Hungary.
The fund is specially allocated to build a brand-new truck and bus radial tire (TBR) factory in Rácalmás, central Hungary. Launched in February 2025, the whole project requires a total investment of 540 million euros. Upon completion, the new plant will bring an annual output increase of 800,000 commercial tires, greatly optimizing Hankook’s production layout across Europe.
According to the European Commission, the subsidy is essential for stimulating regional economic growth, strengthening industrial competitiveness and creating more local jobs. Authorities also pointed out that the financial support acts as a core incentive. Without public funding, Hankook would not carry out this major construction project in the European Economic Area.
Focusing on high-end and eco-friendly manufacturing, the new facility will produce premium tires for long-haul transportation, multi-purpose use and electric commercial vehicles. Scheduled to be completed in 2027, the factory will adopt sustainable, renewable and recycled materials. Meanwhile, 3D additive manufacturing technology will be applied to tread mold production to achieve low-carbon and smart production.
Hankook’s existing production site in Rácalmás has been in operation since 2007, with an annual capacity of 17 million tires for passenger cars and light commercial vehicles. The upcoming TBR factory will realize dual production of passenger and commercial tires, further consolidating Hankook’s market influence in the European commercial tire industry.
