RIYADH, Saudi Arabia — Kumho Tire Co. Inc. has struck a deal with a Saudi investors' group covering the construction of a tire plant in that country.
Kumho and Black Arrow Tire Co. (Blatco) signed a memorandum of understanding Jan. 18 covering the deal within the framework of the Saudi-South Korean Business Forum, held in Riyadh, Kumho Tire told European Rubber Journal in a written statement.
As part of the agreement, the technical partners will start discussing in depth the construction of a tire plant, a company spokesperson said.
According to reports in the Saudi press, the planned factory would have a capacity of 15 million units per year and be scheduled for operation by the third quarter of 2023.
The Kumho spokesperson, however, said the information provided by the Saudi press was "not correct, as nothing has been decided yet."
Thirteen industrial agreements were signed during the high-level Saudi-Korea talks, which ended on Jan. 18.