Brussels: The European Commission has approved a £71.6 million Hungarian State aid measure to support Hankook Tire and Technology Co. Ltd. in establishing a new manufacturing line for truck and bus radial tyres in the Central Transdanubia region. This investment, which forms part of a larger £538 million project, aims to diversify the company's existing plant in Fej©r County, currently focused on producing tyres for passenger cars and light trucks. The initiative is expected to create 469 manufacturing jobs, contributing to the region's economic development.
According to Cyprus News Agency, the Commission evaluated the Hungarian measure under EU State aid rules, particularly Article 107(3)(a) of the Treaty on the Functioning of the EU. This article allows Member States to grant aid to promote the economic development of less advantaged areas in Europe. The Commission determined that the measure is necessary and suitable for fostering economic growth, competitiveness, and employment in the region. The aid will serve as an incentive, as Hankook would not have pursued the project within the European Economic Area without public support. Furthermore, the Commission concluded that the aid is proportionate, adhering to the minimum necessary to motivate investment in Hungary and having a limited impact on competition and trade within the EU.
The non-confidential version of the decision will be made available under case number SA.116666 in the State aid register on the Commission's competition website once any confidentiality issues have been resolved.