Doublestar to accelerate Kumho tire projects in Poland, Korea

Qingdao, China – Qingdao Doublestar is planning to accelerate construction of Kumho Tire's new plant in Poland as it seeks to strengthen its global manufacturing operations amid rising costs and trade barriers.

In its third-quarter results, published 30 Oct, the Chinese tire group said it would "accelerate construction of Kumho Tire's Hampyeong and Poland plants," while ramping up production at its own Cambodian operations.

Kumho’s announced in December last year that it is building a €500-million European base in Opole, Poland.

The Polish plant, with a nameplate capacity of 6 million units of passenger car tires, is set for operation in August 2028. (ERJ report)

In addition, the Korean tire maker is building a new manufacturing facility in Hampyeong county in southwest Korea, set for completion by the end of 2027.

With an investment size of KRW661 billion (€390 million), the new facility will have a capacity to produce 5.3 million units of tiers and 7 million units of “refined rubber” in its first phase. (ERJ report)

In its latest third-quarter results, Doublestar said it would also optimise production across its global factories and deepen cooperation between Doublestar and Kumho in products, distribution channels, manufacturing capacity and supply chains.

The measures come as Doublestar reported a net loss attributable to shareholders of Yuan137.7 million (€18.5 million) for the third quarter, compared with a restated profit of Yuan46.5 million a year earlier.

Quarterly revenue increased 2.5% year-on-year to Yuan7 billion, according to the Shenzhen Stock Exchange filing.

Doublestar attributed the pressure on profitability to 'sharp increases' in raw material prices and shipping costs, alongside exchange-rate fluctuations and intensifying international trade barriers.

The Chinese tire group said it had responded by improving its product and distribution mix, raising selling prices and increasing the proportion of higher-value and new-energy vehicle tires.

For the first nine months, group revenue declined 2.2% year-on-year to Yuan21 billion, but total pre-tax profit increased 5.3% to Yuan1.0 billion.

Doublestar said tire sales revenue at its own tire operations increased 7.5%, while Kumho Tire's revenue rose 5.6% and pre-tax profit increased 38.7%, measured in Korean won.

Kumho had already achieved its full-year 2026 performance commitment one quarter ahead of schedule, the Chinese parent added.