Kumho Vietnam expansion enters trial operation stage

The expansion project of Kumho’s Vietnam plant has entered the final stage. It is reported that all administrative procedures related to the trial operation of the expansion project have been completed.

Tyrepress learned that the Kumho Vietnam factory is a joint venture with 42.409 per cent directly held by a wholly-owned subsidiary of Doublestar. The transaction between the two parties took place in March 2021, when Kumho announced an investment of 340 billion won (about 305 million US dollars at the exchange rate at the time) to expand the Vietnam factory. At this time, Doublestar invested 92.3 million US dollars in developing Kumho’s tyre production capacity in Vietnam and acquired equity in Kumho’s Vietnam factory. According to public information, after the expansion is completed, the Kumho Vietnam plant can produce 8.5 million semi-steel radial tyres and 800,000 all-steel radial tyres per year.

The Kumho Vietnam factory is of great significance to Doublestar. In the third quarter report of 2022, Doublestar expressed its vision to actively promote the construction and successive production of new production capacity of the Kumho Vietnam joint venture project to avoid better the adverse effects of trade barriers and rising shipping costs.