Premium tyre manufacturer Hankook has expanded its European plant in Rácalmás, Hungary. Starting in October, Hankook will produce truck and bus tyres in Europe for the first time. The company has invested €540 million in the expansion of the plant. The new tyre production facility has an annual production capacity of more than 800,000 units. At IAA Transportation, Hankook will ceremonially present the first pilot truck and bus tyres produced at its European facility.
Jongho Park, President and COO of Hankook Tire Europe, emphasises the strategic importance of the new production facility in Europe for Hankook:
“The expansion of our European plant to include new production of truck and bus tyres represents another key milestone for Hankook in Europe. Its central location in Hungary and proximity to the most important markets in Europe are decisive advantages of this location. This enables us to supply our European customers with premium tyres for commercial vehicles even more reliably and quickly, while providing us with the greatest possible flexibility in responding to their needs.”
Shorter distances, faster response times
Until now, Hankook truck and bus tyres for the European market were produced exclusively in Korea and China. With production now taking place in Hungary, Hankook is significantly shortening some of its delivery routes. This reduces delivery times and increases supply reliability. Logistics-related CO₂ emissions will also be reduced, as the long-distance transport routes from Asia will no longer be required in all cases. Local production also increases Hankook’s independence from transportation costs and changing international trade conditions.
€540 million investment in one of Hankook’s most important markets
Europe is one of Hankook’s most important markets, accounting for approximately 45% of the company’s global sales. Since 2007, Hankook has invested approximately €856 million in its production site in Hungary, across three expansion phases. The third phase was completed in spring 2015. Since then, the Rácalmás plant has had an annual production capacity of up to 17 million tyres for passenger cars, SUVs and light commercial vehicles.
The fourth expansion phase includes the new truck and bus tyre production line, representing a further investment of €540 million. Since 2024, the production and associated auxiliary facilities at the site have been expanded by approximately 66,000 square metres as part of this project.
With the new production line, Hankook has also created more than 450 new jobs locally. The company already employed more than 3,300 people at the site. Worldwide, Hankook operates eight production facilities, with a total capacity of up to 100 million tyres per year and approximately 20,000 employees.
“The expansion project represents one of the largest industrial development projects ever undertaken at our Hungarian site,” said Ho Taek Lim, Vice President and Plant Director of the Rácalmás facility. “The new production of truck and bus tyres transforms the plant into a comprehensive manufacturing site with significantly greater complexity and a higher degree of automation.”
Highly automated and sustainable production
The new production facility has been designed as a highly automated system. Automated logistics systems are integrated throughout the entire process, from semi-finished products through to tyre storage. Automated Guided Vehicles (AGVs), together with logistics management systems and real-time tracking, control the flow of materials and storage operations. Automated inspection systems ensure consistent product quality and high production efficiency.
Sustainability was a key consideration in the planning and operation of the new production line. It uses energy-efficient equipment, optimised supply systems and modern process control technologies to reduce energy and water consumption. The plant had already received ISCC PLUS (International Sustainability & Carbon Certification) certification in 2023.
Production launches with 22.5-inch tyres
The new production facility will initially manufacture 22.5-inch tyres for trucks and buses. As production capacity increases and new specifications are introduced, Hankook will gradually expand its product portfolio, enabling it to meet a wider range of customer requirements and cover a broader variety of commercial vehicles.
