Kumho Tire Vietnam is investing $300 million to expand its operations in Vietnam to increase its production capacity in the country by 36%, according to local media reports. The company announced the investment plan at a meeting with the local government.
Operational since 2007 in My Phuoc 3 Industrial Park, the plant currently produces 12.5 million units of passenger car and light vehicle tires per year, having undergone an expansion round in 2021.
Kumho Vietnam said the third phase will increase production to 17 million units per year and is expected to be put into operation in 2026.
According to the local government, Kumho has requested support from the authorities in handling routine processes as well as in land acquisition for further expansion.
In addition, according to Korean media reports, Kumho Tire is considering building its first European factory in 2027 to adapt to the rapidly growing electric vehicle market.
It is reported that the investment will exceed 1 trillion won, with the goal of breaking ground next year and completing construction within two years. Potential countries for plant construction include Romania, Serbia, Portugal and Turkey.
Kumho Tire CEO Jung Il-taik said in a press release: "We are finalizing the locations of four 'candidates'. The annual capacity of the factory will start at about 6 million units and will eventually be expanded to 12 million units.”
As of last year, a quarter of Kumho's sales came from European market. The company operates eight factories in four countries: South Korea, China, the United States and Vietnam. The company currently supplies tires to several European automakers including Stellantis and Volkswagen, but these products are currently manufactured in Vietnam.
Recently, Kumho Tire U.S.A. has launched a new system designed to accelerate tire development at its global headquarters in Seoul, Korea. Referred to as a Digital Twin (DT), Kumho said the system integrates big data analytics, artificial intelligence, and advanced engineering techniques into the tire creation process. The system will help shorten development timelines, enhance tire performance and reduce overall costs.
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