Staatssteun: Europese Commissie geeft toestemming voor 92,6 miljoen euro steun aan Hankook voor een nieuwe bandenfabriek in Hongarije (en)

The European Commission has authorised, under EC Treaty state aid rules, €92.6 million of aid which the Hungarian Government intends to grant to Hankook Tire Hungary for the creation of a new production plant for car tyres in Dunaújváros, Hungary. The total cost of the investment will amount to €424.9 million.

Competition Commissioner Neelie Kroes i said: "I am happy to approve aid for this important investment by a Korean firm in Europe which will contribute to regional development and job creation in Hungary".

Hankook Tire Hungary is the fully owned subsidiary of Korean based Hankook Tire Co. The plant to be set up in Dunaújváros (Central-Transdanubian Region) will be the first production site of Hankook in Europe.

The project, which will be spread over five years (2006-2010), is aimed at producing tyres for passenger cars and light trucks. It is expected to create 1500 new direct jobs as well as up to 750 additional indirect jobs.

The aid will be paid in the form of grants by the Ministry for Economy and Transport and the Ministry for Employment and Labour, as well as a tax relief awarded by the Ministry of Finance.

On the basis of Article 87(3) of the EC Treaty, state aid granted to promote the economic development of certain disadvantaged areas within the European Union may be considered compatible with the Single Market. The Commission considered the aid to be compatible with the rules on regional aid to large investment projects, which are based on the Commission's cohesion policy.

The Commission has been able to clear the aid after an investigation lasting less than five months thanks to the high quality of the notification and excellent cooperation with the Hungarian authorities.