Kumho selects Poland for €500m European tire factory

Seoul – Kumho Tire has announced plans to build a tire factory in Opole, in southwestern Poland, as its first European production base.

The plant in Opole, close to the Polish–Czechia border, will help the Korean tire maker expand its global production base and strengthen its presence in the European market, said Kumho in a 1 Dec. statement.

Set for operation in August 2028, the KRW860 billion (€502 million) factory will have a capacity to produce 6 million passenger car tires per annum in the first phase.

Gradual expansion is also planned depending on market conditions, said Kumho.

The Seoul-based tire maker said it had selected the Polish location following a ‘comprehensive evaluation’ of European countries.

The location, it said, provided favourable conditions in terms of sales expansion, investment stability, profitability, and incentive benefits.

Kumho went on to add that Europe was “a key market” for the company, accounting for 26.6% of its total sales last year.

With the establishment of a local production base, the company said it will secure stable sales growth.

The tire maker is also planning to strengthen its portfolio, focusing on high-value-added products (HVPs), such as high-performance and high-inch tires, to enhance profitability and brand value.

Furthermore, Kumho noted that Europe accounts for about 17% of the global OE market and is home to many of the world's leading premium car makers.

The tire maker said it had previously struggled with OE supply stability and lead times due to its lack of a production base in Europe.

“However, the new plant is expected to significantly expand our local OE response and opportunities for collaboration with premium brands,” it said.

“The European market holds a very important strategic position in the global tire industry,” said CEO Jeong Il-taek.

“Kumho Tire will go beyond simple exports and strengthen its quality and service competitiveness through local production and supply in Europe,” he said.

The move, according to the Kumho CEO, is expected to "dramatically increase the value of our premium brand."

Meanwhile, Kumho confirmed plans to build a new manufacturing facility in Hampyeong, South Korea, with an annual production capacity of 5.3 million tires by the end of 2027.

The facility in South Korea is part of Kumho’s relocation of operations from its Gwangju factory, which was severely damaged in a major fire in May.

“Kumho Tire will continuously expand local production capabilities optimised for regional demand to further strengthen its competitiveness in the global market,” the company concluded.