SEOUL, South Korea — Kumho Tire Co. Inc. has again signaled plans to build a new “global” tire factory, while reporting a strong third-quarter business performance.
In its financial report, Kumho said it was “reviewing investment in a new global plant to expand OE tire models in Europe and [meet] robust demand for replacement tires."
Earlier this year, officials of the Korean tire maker indicated that plans for a production facility in Europe had been approved by Kumho’s board.
Qingdao Doublestar Tire-owned Kumho also stated that an expansion program at its Binh Duong, Vietnam, factory had begun to “stabilize", with production volumes expected to increase.
Kumho launched the two-year expansion project in 2021 with the aim of doubling production capacity at the site to around 9.3 million units/year.
For the three months ending Sept. 30, Kumho posted a 45.7% increase in operating profit to $103.5 million on 14% higher sales of $824 million, for a 12.5% operating ratio.
Kumho said it has achieved sales of over 1 trillion Won (roughly $825 million) for four consecutive quarters since the fourth quarter of 2023, despite a global slowdown in the car market.
The Korean manufacturer linked the higher sales to “steady growth” in replacement market demand, while earnings rose on stronger sales of higher-margin and 18-inch and larger rim-diameter tires.
For the full year, Kumho has set itself a sales target of $3.4 billion, reflecting a 42% sales ratio of larger rim-diameter tires and rising proportion of OE fitments for EVs.
