South Korean tyre manufacturer Kumho Tire Company Ltd plans to complete construction of its first tyre plant in Europe in the next two years, as it looks to reduce logistics costs while strengthening its presence in the region’s premium tyre market. The company has signed original equipment (OE) supply contracts with a number of European automakers in recent years, including Volkswagen Group, BMW and Mercedes-Benz.
Kumho’s CEO, Jung Il-taik, revealed at the launch event for its new Ecsta Sport tyres in South Korea this week that it has shortlisted Poland, Serbia and Portugal as potential production locations for the new plant, adding “we are actively evaluating them.”
Kumho is understood to be planning to invest over KRW1 trillion (US$705 million) to build the new facility, with the initial phase scheduled to be completed by 2027. The company expects that local production in Europe will help it win more OE contracts with high-end European auto brands.
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Kumho currently has production has eight tyre manufacturing plants located in South Korea, China, the US and Vietnam, but so far none in Europe — which it says limits its competitiveness in the region.
Kumho has increased its focus on premium tyres in recent years, as global competition from low-cost manufacturers from India and China has increased.
