Kumho to Help FAW Make Own Tyres

(Akron/Tire Review) Kumho Tire Co has signed a deal to provide First Automobile Works (FAW), China’s largest vehicle manufacturer, with tyre manufacturing know-how. FAW, which operates one of Volkswagen’s two Chinese joint ventures, will then be able to produce its own tyres for passenger vehicles.

The $150 million cooperation agreement was signed last week during the China Jilin Northeast Asia Investment and Trade Expo. The expo was attended by Chinese and South Korean vehicle manufacturers and suppliers, amid signs, according to reports, that Korean manufacturers are increasingly interested in sourcing components from China.