Kumho Petrochemical to sell its share in Kumho Tires

Kumho Petrochemical aims to exit the debt workout programme it has undertaken for the past year by the end of 2011, and to help boost its economic viability the Kumho Asiana division intends to sell the million or so shares it holds in Kumho Tires. “As part of a consistent move, we will sell all stakes of Kumho Tire owned by us from July, to help strengthen financial soundness,” said Kumho Petrochemical chairman Park Chan-koo.

Park told journalists in Korea on February 9 that putting Kumho Petrochemical’s business “back on track” was its “top priority” at present. “That means graduating from the workout programme set by creditors by the end of this year,” he elaborated.

The Kumho Petrochemical business unit has also opened its second plant in South Korea, a facility developed with a 170 billion (₤95.6 million) investment over a three-year period and equipped to produce 120,000 tons of halobutyl rubber per annum. Combined, the two facilities have an annual output of 703,000 tons. “Kumho is aiming for 10.4 per cent of the global SBR and BR markets by boosting production. That market share would be enough to lead its rivals,” said Chang Kab-jong, vice president of Kumho’s Yeosu Synthetic Rubber Plant I & II. Kumho Petrochemical is the world’s fourth largest producer of synthetic rubber, and aims to achieve sales of 20 trillion won (₤11.3 billion) by 2020.