Kumho increases global tyre output to c.65 million units

Kumho has completed the construction of a 315,000 sq metre Vietnamese tyre factory, in which it has invested $200 million. The plant will initially manufacture some 3.15 million tyres per annum, but there is provision to expand production to 13 million units.

With the new plant on stream, Kumho expects its 2008 international tyre production levels to total c.34 million units, thereby exceeding its domestic output (c.31 million units) for the first time and creating a worldwide total of c.65 million units. This will be a significant step towards the company’s ambition of achieving 5th place in the league of global tyre manufacturers by 2015.

Further steps in this direction will be achieved on the completion of the company’s new truck tyre facility in Nanjing, China at the end of this year and one for passenger car tyres in Georgia, USA in late 2009.

The new Vietnamese plant will make tyres for its home market and those of other major Asian countries, taking full advantage of the improved reduction in tariff barriers. It will also export product to the Americas and Europe.

Self-sufficient

Rubber supplies for the new building will stem largely from its Vietnamese rubber factory, which itself only came into being in recent months. It is helping Kumho reduce much of the risk associated with increases in the cost of raw materials and thereby maintain price stability.

For further information on Kumho and its products log onto kumhotyre.co.uk.