Doublestar to increase control over Kumho under restructuring plan

Shenzhen, China – Qingdao Doublestar is increasing its control over Kumho Tire with the acquisition of the investment vehicle formed in 2018 to purchase the Korean tire maker.

In a disclosure announcement 25 March, the Chinese group said it is acquiring all 'property shares' of Qingdao Xingwei equity investment fund to resolve issues of “horizontal competition” within the group.

Doublestar Group, the controlling shareholder of Qingdao Doublestar, in partnership with a number of local Chinese investment groups, created the Xingwei fund in 2018 to purchase 45% of Kumho Tire shares.

After completion of the new shares-purchase process, Kumho Tire will become a holding subsidiary of Qingdao Doublestar.

Kumho Tire is South Korea’s second largest tire manufacturer with sales of KRW4,000 billion (€2.7 billion) in 2023, up 12% compared to the year before

The Korean tire maker recorded earnings (EBITDA) of KRW227 billion last year compared to a loss of KRW8.4 billion in 2022.

Kumho Tire recently stated that it considering plans to build a tire production facility in Europe, and would update investors about its decision next month. (ERJ report)