Kumho eyes new 'global' tire plant amid solid business growth

Seoul – Kumho Tire has again signalled plans to build a new 'global' tire manufacturing facility, while reporting a strong third-quarter business performance.

In its financial report, issued 29 Oct, Kumho said it was “reviewing investment in a new global plant to expand OE tire models in Europe and [meet] robust demand for replacement tires."

Earlier this year, officials of the Korean tire maker indicated that plans for a production facility in Europe had been approved by Kumho’s board.(ERJ report)

Doublestar-owned Kumho also stated that its expansion programme in Binh Duong, Vietnam, had begun to “stabilise", with production volumes expected to increase.

Kumho launched the two-year expansion project in 2021 with the aim of doubling production capacity at the site to around 9.3 million units/year.

For the three months to 30 Sept, Kumho posted a 45.7% year-on-year increase in operating profit to KRW140 billion (€93 million), on 14% higher sales of KRW1,115 billion.

Kumho, therefore, achieved sales of over KRW1,000 billion for four consecutive quarters since the fourth quarter of 2023, despite a global slowdown in the car market.

The Korean manufacturer linked the higher sales to “steady growth” in replacement market demand, while earnings rose on stronger sales of higher-margin and 18"+ tires.

For the full year, Kumho has set itself a sales target of KRW4,560 billion, reflecting a 42% sales ratio of high-inch products and a “16% or higher” proportion of OE fitments for EVs.

By the end of the third quarter, the company said it had achieved 72% of the sales target (KRW3,291 billion), with a 41.8% ratio of high-inch product sales, and 14% ratio of EV OE tires supplied.