SEOUL, South Korea — Kumho Tire Co. Inc. confirmed recently it is evaluating plans to build a tire factory in Europe.
If the plan comes to fruition — Kumho said it plans to provide a more formal update by April 17 — it would be the South Korean tire maker's first plant in Europe and sixth outside of Korea.
Kumho — the No. 16 tire maker worldwide based on fiscal 2022 sales of $2.76 billion — issued in a stock exchange filing March 18 in response to recent reports in Korean media of the company's plans for a $765 investment in Europe.
In that statement, Kumho said it is "considering opening a new factory in Europe," but added that "no specific decision has been made regarding the amount and timing of the investment." The statement is attributed to Senior Vice President Kim Jun-seok.
Multiple reports of Kumho's plans surfaced the week of March 10 following a press event held for the launch of the company's EnnoV tire line dedicated to electric vehicles.
At that launch, Kumho Tire CEO Jung Il-taik was cited by media covering the event as having discussed the company's intention for a European plant. He reportedly pegged the plant size at 6 million units a year and said his company is considering sites in four countries.
Europe represents 24% of Kumho's global sales. Last year the company reported sales of $738.6 million in Europe, down 16.7% from 2022.
According to company documents, Kumho operates three plants in South Korea, three in China and one each in Vietnam and the U.S. Workers at the U.S plant, in Macon, Ga., last year gained union representation through the United Steelworkers union.
Those factories have a combined annual capacity of 62 million tires, Kumho said: 27 million in Korea; 19.4 million in China; 12.5 million in Vietnam; and 3.3 million in the U.S.
The company is forecasting global growth of 13% in 2024 over 2023. China's Qingdao Doublestar Group owns 45% of Kumho Tire.
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Tire Business contributed to this report.
