An expansion project worth more than €32m (US$36m) has begun at Hankook’s plant in Rácalmás, Hungary, as the tire maker seeks to improve its services by building internal warehouse.
The construction project began in autumn 2021 and upon completion the new buildings will be used for the storage of raw materials and finished tires. Through the investment Hankook aims to improve its raw materials supply, make company processes more efficient and increase security.
At present 88% of finished Hankook tires are stored in the Rácalmás plant’s on-site warehouse, while most incoming raw materials are stored off-site in multiple warehouses. One of the new buildings will have a 13,000m2 footprint and will be utilized for the storage of chemicals, textiles, steel wires, carbon black, silica and block rubber raw materials. The second warehouse will have a footprint of 20,000m2 and will increase the sites tire storage capacity to 1.5 million tires.
The expansion will enable the tire maker to meet storage needs in-house without needing to use outsourced services. The new warehouses will also mean that Hankook doesn’t need to transport tires and raw materials to other areas as often, reducing environmental impacts caused by road transport operations.
“This investment improves our services while simplifying workflows. The solution of storing more raw materials for production on-site will be a big step forward for the Rácalmás plant and will make the work of our employees easier,” commented Hyung Yun Kim, managing director, Hankook Tire Hungary. “In addition, deliveries will become more practical without outsourcing the storage of finished tires.”
Hankook has invested approximately €880m (US$1bn) in Hungary, since the Rácalmás plant was first built. Operations at the new warehouse are scheduled to begin in autumn 2022.
