Kumho Tire in talks to supply OEM products to Yokohama

Tokyo – South Korea’s Kumho Tire plans to extend its partnership with Yokohama Rubber Co. with the delivery of OEM tires to the Japanese tire-maker, Kumho announced 21 May.

The two companies have already been co-developing ‘next-generation’ tires after entering into a strategic R&D alliance in May last year.

“Negotiations are under way on issues including specifications, volume and start of shipment. We will consider gradually expanding shipment volume depending on orders secured by our plants in China and the demand for OEM products,” said a Kumho statement.“We can start delivery as early as this year, if we make rapid progress on the negotiations.”

The deal, which is yet to be finalised, would help Kumho raise utilisation rates of its plants in China, according to the Korean company.

“Amid concerns that this year might see global tire makers struggling to fill idle capacity in China with US authorities expected to slap anti-dumping duties on tires made in China, Kumho could use the potential OEM deal to bolster its ties with Yokohama as well as to increase the utilisation of its Chinese factories,” Kumho stated.

Kumho announced in January that it was relocating its Nanjing factories to an advanced site in a nearby district by 2016. The company will be moving its plants for passenger car tires (PCR) and truck and bus radial tires (TBR) to an economic development zone in Pukou, a district in Nanjing, starting next year.