Kumho to build $380m car tyre plant in Vietnam - reports

Binh Duong, Vietnam -- Vietnamese newspapers are reporting apparently official statements from Kumho Tyres Co, Ltd. that it will build a large car tyre plant in Vietnam.

No official statement has reached ERJ, but it seems that on Mar. 29 the company's president and general director, Oh Sae Chul, signed an agreement to lease 40 ha in the My Phuoc Industrial Zone in southern Binh Duong province for a $380 million project to produce car and light truck tyres. The deal was also signed by Nguyen Van Hung, Chairman of the Board of Directors of the Trade, Investment and Development Corporation (Becamex Corp.), which is the My Phuoc IZ investor.

The plant will be built in stages, the first phase is due to come on stream in late 2008, and has planned capacity of 3.15 million tyres per year. Around $155 million has been allocated to this part of the project, and industry sources say that roughly $100 million will be spent on machinery and equipment.

Kumho also plans to build a rubber latex processing plant in Binh Duong province to supply materials for its tyre factory.

Local papers said the project in Vietnam is part of the company's production expansion plan which will help the company become the fifth biggest tyre manufacturer in the world.

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