Kumho, Blatco agree 'technology-transfer' for Saudi tire plant

Seoul – Kumho Tire has signed a technology-transfer agreement with Saudi partner Blatco (Black Arrow Tire Co.) relating to a planned tire factory in Saudi Arabia.

Under the 20-year deal, Kumho Tire will provide Blatco with technology necessary for the overall production of passenger tires sold in the Middle East, including Saudi Arabia.

Blatco aims to build the 85,000-square-metre factory in a western Saudi industrial complex by 2027, added a 4 March announcement from the Korean tire maker.

Kumho's release did not provide futher details about the plant, but Blatco has stated that the factory is designed to manufacture 10 million units/year of passenger car, SUV, truck & bus and aircraft tires.

According to Kumho, Blatco's project has “strong support” from the Saudi government as part of the country’s “Vision 2030 policy”, which aims to diversify the Saudi economy.

“Saudi Arabia is continuing its solid growth as the largest automobile tire market in the Middle East,” commented Kumho CEO Jeong Il-taek.

The country, he said, is preparing for the future by strengthening investment in manufacturing.

“We will prove our technological competitiveness and at the same time lay the foundation for growth in production and sales in the Middle East market,” the Kumho leader added.

“We have finalised a technology export agreement with Kumho Tire to proceed with the project, and we plan to begin construction of the factory next year,” said Adel Al Massoud, CEO of Blatco.

In the future, Al Massoud said, Blatco intends to develop new products and enhance quality through its partnership with Kumho.

Blatco and Kumho initially announced their planned investment in the ‘mega-scale tire factory’ in 2022 and had previously set a mid-2024 date for start of construction work. (ERJ report)