Kumho Tire Co. Inc. broke ground May 16 on its fourth tire plant in China-a truck/bus radial (TBR) plant in Nanjing-slated for completion in the second half of 2008 at a cost of $90 million.
The plant will have annual capacity of 300,000 units.
Kumho said it plans to ``aggressively pursue the Chinese tire market by diversifying its export market strategy and expanding production to include TBR tires.'' TBR demand has grown as a result of city development in China, the firm added.
``We are very glad to build this bus and truck tire factory at Nanjing, an important place for us to further our growth in the Chinese market,'' said Park Sam-Koo, chief executive of Kumho Asiana Group, Kumho Tire's single largest shareholder. ``From now on we will put forth more effort to activate interchanges between the two countries.''
Kumho is building a passenger tire plant in Changchun due on stream this year that will have a capacity of 3.1 million tires a year. The plant joins factories in Nanjing and Tianjin.