India, May 4 -- The European Commission has approved a 71.6m Hungarian state aid measure to support Hankook Tire & Technology Co. Ltd. in establishing a new tyre manufacturing line, in a project aimed at boosting employment and industrial capacity in central Hungary.

The aid, equivalent to HUF28bn, will support the construction of a truck and bus radial tyre facility in the Central Transdanubia region. The investment forms part of a broader 538m project to expand Hankook's existing plant in Fejer County, which currently produces tyres for passenger cars and light trucks.

The measure will be provided as a direct grant and is expected to create 469 jobs, primarily in manufacturing.

The Commission assessed the scheme under EU state aid ru...