South Korean tire manufacturer Hankook needs to expand production in Europe and since their only European plant is located in Hungary, chances are good for capacities to be enlarged always here, Prime Minister Viktor Orbán said on Friday.

Hankook has already created many jobs and following the third phase of its plant expansion, it will employ more than three thousand people, the Prime Minister told a local television channel after visiting the Hankook plant in Rácalmás, central Hungary, and meeting leaders of nearby Dunaújváros.

As there are troubles at Dunaferr involving lay-offs, it is highly important to create jobs in the same town, the Prime Minister said. He noted that the jobs have been preserved but decisions on the future of the steelmaker are “not in their hands” any more.

Unfavourable economic developments made Dunaferr loss-making and “steps were taken towards lay-offs,” he said, adding that despite repeated offers, the Government was unable to repurchase the factory.

However, good relations were developed during negotiations and since the Hungarian Government is determined to preserve jobs, talks do not focus on lay-offs, but on future developments, the Prime Minister stressed.

(Prime Minister’s Office)