Kumho opens Vietnam plant
Kumho Tire lays cornerstone of new factory in Vietnam
RANCHO CUCAMONGA, CA (March 7, 2008)…Kumho Tire Co., Inc., held a ceremony for the laying of the cornerstone of its new factory in Vietnam on March 5, 2008, in Binh Duong Province. Approximately 200 guests attended the event, including Nguyen Sinh Hung, the senior vice prime minister of Vietnam; Mai The Trung, chief secretary of Binh Duong Province; Nguyen Hoang Son, the head of Binh Duong Province; Do Huu Hao, the vice minister of the Commerce and Industry Department; Hong-Jae Im, Korean ambassador to Vietnam; Sam-Gu Park, president of the Kumho Asiana Group; and Sae Chul Oh, president of Kumho Tires.
Kumho invested U.S. $200 million in the construction of the factory in Vietnam, which will have a capacity of 3.15 million tires per year. Based on the analysis of future market conditions, Kumho expects to expand the plant’s production to 13 million units.
This Vietnam plant is part of Kumho Tires’ global strategy and is expected to play a significant role in the company’s activities in the Association of SouthEast Asian Nations (ASEAN) market, including Vietnam, and will serve as a prominent manufacturing and exporting base. Kumho will target production from the Vietnamese factory on Vietnam and ASEAN countries, taking advantage of the reduction of tariff barriers. The company also plans to ship products manufactured from Vietnam to the Americas and Europe.
In addition, Kumho completed its rubber factory construction in Vietnam and has independently supplied raw materials so that the establishment of the rubber factory reduces most of the risk associated with raw material price increases. This has helped Kumho in its price stabilization efforts.
Kumho expects its international production of approximately 34 million units to exceed domestic production of approximately 31 million units in 2008 as a result of the new plant in Vietnam. Kumho hopes to accelerate its recognition as a global player by expanding its international production levels. These efforts will be enhanced with the completion of the TBR factory in Nanjing, China, (scheduled for the end of this year), and commencement of factory construction in Georgia, U.S., scheduled for the first half of this year. Completion of the U.S. plant is scheduled for the second half of 2009.
