Kumho US Plant a Step Towards Global Leadership

The president and chief executive of Kumho, Oh Sae-cheul, has described plans for his company’s $165 million factory in the US state of Georgia as being part of Kumho’s efforts to become a global tyre manufacturing leader. The signing ceremony for the new 123.6 acre facility took place on January 29, and was attended by Mr. Oh and Georgia Governor Sonny Perdue.

“With this plant in the United States, the world’s biggest tyre market, we want to save shipping costs to that market and to emerge as a global leader,” said Mr. Oh to South Korea’s JoongAng Daily newspaper. The establishment of a facility in the US marks Kumho’s first step out of Asia in terms of production; currently the company operates three facilities in China and one in Vietnam in addition to its three South Korean factories.

The plant will become operational during the second half of 2009 and annual production capacity will stand at 2.1 million units. Much of the plant’s initial output will reportedly service US based OEMs, however Kumho also has the replacement market in its sights.