Kumho Tyre has broken ground for its third Chinese plant in the northeastern city of Changchun to boost annual production in the fast-growing market to 21m tyres.
According to the Korea Herald, Kumho said it will invest $US150m in the Chanchun factory in Jilin Province which will be capable of churning out 3.15m units per year after completion in late 2007.
“We aim to become a leader in the Chinese market as well as one of the world’s top five tyre makers,” said Kumho Asiana Group chairman Park Sam-koo at the groundbreaking ceremony in Changchun.
Korea’s second-largest tyre maker plans to supply most of the original equipment and high-performance tyres made at Changcun to China First Automotive Group.
Kumho completed a factory capable of rolling out 12m tyres in Nanjing in April last year. Another plant with a capacity of 5.25m is slated for completion next month in Tianjin, the northern port that serves the Beijing metropolitan region.
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By GlobalDataThe tyre maker also signed an agreement in March to build a plant in Vietnam to churn out 3.15m units annually.