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Hankook Tire’s Ground Breaking Ceremony at Dunaujvaros , Hungary
Hankook Tire’s Ground Breaking Ceremony at Dunaujvaros, Hungary
- Creating economic added value of 1500 people employment and infrastructure establishment
- Completed in 2010, total 500mil. Euro of investment, production scale of 10 mil. units yearly
- Establishment of future oriented logistics foundation by securing a production post for on-site production in Europe
- Key role in increasing the European market share and development into a major brand
Hankook Tire(www.hankooktire.com, CEO: Cho Choong Hwan), the eighth largest tire company in the world, initiated the construction of its factory in Dunaujvaros, Hungary, which will play the role of its European outpost.
Hankook Tire held the ground breaking ceremony at the construction site of 56 ha located in the Dunaujvaros region, 68km south of Budapest, the capital of Hungary, on the 14th.
At this ceremony, which was held after 9 months since its contract with the Hungarian government for the factory construction last October, about 150 people were present, including Hankook Tire’s CEO Cho Choong Hwan, President and COO of Hankook Tire EUHQ Suh Seung Hwa, , Minister of Ministry of Local Government and Territorial Development Dr. Lamperth Mónika, , State Secretary Mr. Garamhegyi Ábel of Ministry of Social and Labour, Deputy State Secretary, Ms. Székely Judit, Mayor Dr. Kálmán András, of Dunaujvaros, Korean ambassador to Hungary Suk-jung Um, representative of cooperating companies, and the major presses in Hungary.
The Hungary plant, to which a total of 500 million Euro was invested, will begin its production by the later half of 2007. The plan is to complete all stages of building the factory until 2010, aiming to produce 10 million high performance tires for cars and light trucks, and this factory will be mainly serving the European demand.
Also, Hankook Tire plans to employ about 1,500 employees, including 750 indirect employees; this factory is expected to not only create employment, but also generate economic added value for Dunaujvaros and the nearby regions by establishing the infrastructure of the vicinities for the production of tires.
The European region is the biggest market for Hankook Tire, composing about 35% of its entire export. To achieve a high productivity here, Hankook Tire plans to enhance the brand value (or its tatus) as a major brand and increase the proportion of high value added (or high quality) products, and challenge the European market.
Therefore, by establishing its Hungary plant, Hankook Tire will be securing a production post for on-site production, building the foundation on which a future oriented logistics system can be constructed where works such as production, sales, logistics, marketing, and product development can be methodically and comprehensively done in the European region, and being able to stably control the product flow.
Especially, once the plant launches production, the products will be ordered based on weekly plans and the transportation period will be greatly reduced; the logistics infrastructure and network of Hankook Tire will be greatly improved, and in 2008, when the first stage of construction will be completed, Hankook Tire will achieve 70 million units of yearly tire production. This means that Hankook Tire’s market share in Europe will remarkably increase, while the its status as a major brand will be firmly established.
Presently, Hankook Tire is reinforcing a high level marketing strategy to develop into a major brand in Europe, and is also conducting practical marketing activities that have direct/indirect influence on the increase of sales.
CEO, Cho Choong-hwan of Hankook Tire said that “with the construction of the Hungary plant, Hankook Tire will be establishing a serious global production network, centered in Korea, China and Hungary,” and emphasized that “by becoming the European production post of Hankook Tire for on-site production in Europe, the plant will function as an important momentum for Hankook Tire to enter the top five rankings in the world.”
Hankook Tire has selected Hungary for its European plant’s location last October, out of many countries in the central European region, due to grounds such as the aspect of logistics and prime cost, well trained technicians, approachability to the Western European region, and the active cooperation of the government.