The European Commission has approved €71.6 million (HUF 28 billion) in Hungarian state aid for Hankook Tire & Technology to set up a new truck and bus tyre production line in Hungary.
The support will be provided as a direct grant and relates to a €538 million project in the Central Transdanubia region, the Commission informed on Monday.
Hankook will use the funding to diversify its existing plant in Fejér County, which currently produces tyres for passenger cars and light trucks.
The Commission said the investment is expected to create 469 jobs, mainly in manufacturing.
How the aid was assessed
The measure was approved under EU state aid rules that allow member states to support economic development in disadvantaged areas, including Article 107(3)(a) of the Treaty on the Functioning of the EU and the EU’s Regional Aid Guidelines, the Commission said.
The decision will be published in a non-confidential form under case number SA.116666 in the Commission’s state aid register once any confidentiality issues have been resolved.
