Construction Delayed at Kumho’s Georgia, USA Factory

The global economy and a downturn in the US automotive industry are said to be principal factors behind construction delays at Kumho’s tyre factory in Bibb County in the US state of Georgia. Macon, Georgia newspaper The Telegraph reports this news was given by local Chamber of Commerce president Chip Cherry on October 20.

Cherry said the factory is still expected to open and bring 450 jobs to the area. “The building of this plant is not in question,” he said. “It’s just the timing.” The Kumho factory had been scheduled to open in late 2009, however a drop in new car sales and changes in the US dollar/Korean won exchange rate has led the company to push this timetable aside, Cherry added. The dollar is now approximately 25 per cent stronger against the won compared to when Kumho held the facility’s groundbreaking ceremony in May.

“I don’t think they’re going to be firm on (a new timeframe) for another couple of weeks,” said Cherry. The Chamber of Commerce president did reiterate, however, that Kumho officials “state over and over again that they’re committed to (building the factory).”