Kumho opens truck tyre plant in Nanjing, China

ERJ staff report (TB)

Nanjing, China -- South Korea's Kumho Tire Co. Inc. has inaugurated production of truck tyres at its newest plant, a $100 million (Euro 78 million) factory in Nanjing, China

The plant came on stream 18 months after Kumho broke ground on the 8 300 m². facility in Nanjing, the capital of Jiangsu Province. The plant is Kumho's fourth in China and first dedicated to truck tyres. The other plants are in Nanjing, Tianjin and Changchun, the latter of which also came on stream this year.

Kumho recently said its completion of its first US plant--in Georgia--has been extended.

Kumho Tire President and CEO Sae-chul Oh attended a ceremony earlier this month to mark the China plant's official opening. In attendance were about 200 prominent business people and government officials from South Korea and China.

The plant is designed to produce more than 300 000 radial truck and bus tyres annually, Kumho said, helping the company compete in a market that is expected to grow between 25 and 30 percent each year.

“Kumho Tires is already the No. 1 passenger car tyre maker in China, and this state-of-the-art plant gives us an important foothold in its fast-growing truck and bus tyre market,” Mr. Oh said in a prepared statement. “China has enormous growth potential and is a key part of our strategy to become one of the top five global tyre makers.”

“Long term business strategies for Kumho Tires in China include reinforcing positive product perception and brand image while enhancing competitiveness in distribution by diversifying sales channels,” said B.C. Kim, head of Kumho's China subsidiary.

In addition to the four plants, the company established an R&D centre in Tianjin in 2006, which includes the latest testing facilities for chemical analysis and performance tests.

Mr. Oh called the plant a “win-win opportunity for both the city and for us. The city benefits through jobs, economic stimulus and additional infrastructure, and we gain the incredibly dedicated and well-educated workforce that Nanjing offers.”

Kumho did not say how many employees it expects to have at the plant.

From Tire Business (A Crain publication)

Press release from Kumho