Partial day strike action at Kumho’s two main South Korean facilities is likely to cost the company about KRW 2.98 billion (£1.4 million) a day in lost output. Strike action initiated by the Korean Confederation of Trade Unions (KCTU) began on July 2, and Kumho stated in a filing with the Korea Exchange that the strike calls for each shift and the factory to remain idle for four hours a day.
The Kumho Asiana Group has posted its first quarter 2008 results, and despite achieving what the company has called ‘favourable business results’ group-wide and increasing revenue in its Kumho Tires business division, income figures for the company’s tyre operation continued to be negative. The entire group recorded the highest quarterly revenue in the company’s history, KRW4.98 trillion (£2.45 billion). From this came an operating income of KRW270.2 billion (£132.93 million) and net income of KRW41.1 billion (£20.22 million). Kumho Tires posted an increase in revenue of KRW 71 billion (£34.93 million) or 15.6 per cent to reach a figure of KRW 524.7 billion (£25.81 million). Similarly, operating income rose by KRW 6.7 billion (£3.30 million) or 30.3 per cent compared to the same quarter last year, to KRW 28.8 billion (£14.17 million). The operating margin was 5.5 per cent.
Amongst the 30 products Kumho displayed at the Reifen Essen show was the company’s new eco-friendly tyre, the Solus KH19. This flagship environmental product is based on proprietary technologies including KADAS (tyre structure simulation technology), ESCOT (tyre contour optimisation technology) and TTIA (tyre-terrain interaction analysis). The Solus KH19 boasts a 35 per cent improvement in rolling resistance and a six per cent decrease in CO2 emissions. Its construction is of eco-friendly materials, including low PAHs (polycyclic aromatic hydrocarbons) oils and non-petroleum fillers, and a tread pattern that Kumho refers to as ‘nature based’. This pattern, says the South Korean manufacturer, is not only intended only to reinforce the tyre’s green image; it also provides a smoother ride. The Solus KH19 will be available from this autumn.
“This is a milestone year for Kumho as we strengthen our focus on making ‘greener’ products,” said Sae-chul Oh, CEO and president of Kumho Tires. “These new tyres improve fuel efficiency, lower CO2 emissions and run more quietly. We have also re-engineered our manufacturing process to make it more environmentally friendly. Kumho has taken this leading role in environmental issues because it allows us to provide tangible benefits to our customers, while simultaneously helping the planet.”
The Kumho Road Venture MT KL71 and BFGoodrich Mud-Terrain T/A have been named joint winners of 4×4 Magazine’s ‘ultimate tyre test’. In conducting the test, in which 4×4 Magazine aimed to discover the UK’s best mud terrain tyre, the tyres were reportedly subjected to the key obstacles and conditions encountered throughout the country. Size 235/85 R16 tyres from eight manufacturers were in turn fitted to a 2007 Land Rover Defender 110 and subjected to six challenging real world tests – mud climb, bog run, side slope, rock crawl, gravel and tarmac braking – at a venue in South Wales.
The Kumho and BFGoodrich products finished the test eight points ahead of their nearest rivals, the Goodyear Wrangler M/T and Maxxis Mudder Buckshot. The magazine found the Kumho KL71 radically different in appearance from all its competitors and, in fact, to be the best looking as well as the joint best performer. The Kumho was awarded top marks on the rock crawl and gravel braking tests and performed with credit on the mud climb and bog run. The BFGoodrich tyre, said 4×4 Magazine, is an item considered by some to be the original and best mud terrain tyre. “Slippery mud and dangerous grass were its key strengths, with both obstacles proving no problem for the traditional American,” reported the magazine.
Kumho notched up another rally success at the Jim Clark event held on the weekend of May 23-25. The rally, which Kumho describes as effectively being five events in one, ended with the first four places in the National event held by Kumho shod vehicles. Finishing in the top four spots were:
David Kynaston/Andy Russell (Audi A3 Quattro)
Andy Fenwick/Lee Tindall (Skoda Octavia WRC)
David Mann/Alun Cook (Subaru Impreza WRC)
Alistair Thorburn/Paul McGuire (Subaru Impreza)
Andy Fenwick and Lee Tindall, who returned to the Kumho fold this year after a season on rival rubber, were also the outright victors of the Reivers event.
Kumho Tires makes no secret of its ambition to stand amongst the world’s top five tyre companies by 2015, and one channel the company says it will use to achieve this is to strengthen the Kumho R&D network. One key part of the South Korean manufacturer’s strengthening programme is the planned Kumho central R&D centre in Yong-in, Gyeonggi Province, and on May 15 an official ceremony was held to mark the start of construction work at the site. Numerous company executives and employees, including CEO Sae-Chul Oh, attended the ceremony.
The anticipated completion date for the central R&D centre is the latter half of next year. A sum of 70 billion KRW will be invested into the project, which will cover a floor space of 24,092 square metres and a land area of 34,842 square metres. The facility is planned to be, says Kumho, one of the world’s top three central R&D centres.
Flexsys America L.P., a subsidiary of Solutia Inc., has announced it has filed a new complaint with the U.S. International Trade Commission (ITC) against Sinorgchem Co., Shandong; Korea Kumho Petrochemical Co., Ltd. (KKPC); Kumho Tire Co., Inc.; and Kumho Tire USA, Inc. This complaint asserts that the importation of Sinorgchem’s 4-ADPA or any antidegradants made from its 4-ADPA into the United States violates section 337 of the U.S. Tariff Act, due to Sinorgchem’s infringement upon Flexsys’ patents for the production of 4-ADPA and its intermediates.
In this new case, Flexsys seeks an exclusion order barring the importation of Sinorgchem’s 4-ADPA as well as 6PPD made from Sinorgchem’s 4-ADPA into the United States, including that manufactured by KKPC.
Last Monday saw Kumho Tire begin construction work on its facility in the US state of Georgia, the fifth outside of Korea to be built by the company. Completion of work is anticipated for the second half of 2009, and initial capacity will be 2.1 million tyres.
“With the Georgia plant, Kumho Tire will be a further step ahead as a world-class tyre maker,” said Kumho Tire CEO Oh Se-chul in a statement.
Kumho Tire USA will break ground this Monday for its planned $225 million passenger and light truck/SUV plant in Macon, Georgia. Top executives from parent company Kumho Tire Co. and state and local officials are expected to be on hand for the event. (Tire Review/Akron)
The Kumho Tyres MSA British Rallycross Championship moves to Pembrey in South Wales on May 3 and 4 for a crucial double-header that forms the second and third rounds of the championship. Title holder Ollie O’Donovan won the first round of the championship and holds a three-point lead at the head of the championship tables entering rounds two and three. Last year proved to be a bogey track for O’Donovan, technical problems costing him places in both of the championship’s visits to the fast Welsh track.
“I think I had quite an easy run in the first round but I’m not expecting it to be like that at Pembrey as there’s a long run from the start to the first corner and that doesn’t really suit my car as much as some others,” said O’Donovan, who added that his plan is to race hard right from the start. “I think everyone will be conscious that there’s a need to get the cars through two full days, but I’d rather go for it right from the start and take my win on Saturday than hang back and take a place and then perhaps miss out on Sunday too. The two drivers I’d be most concerned about are Steve Hill and Liam Doran, but I’ll take each day as it comes.”
Kumho Tire Co. told analysts earlier this week that its anticipated first quarter loss will be larger than expected. For the first quarter of 2008, Kumho lost 36 billion won (US$36.2 million), compared with a loss of 14.3 billion won for the same quarter last year. The tyremaker’s year-over-year operating profit, though, was up 30 per cent and sales rose 15.6 per cent. (Tire Review/Akron)
Micheldever Tyre Services has announced the appointment of Jason Burgess as its new Kumho Brand Manager. Micheldever holds the distinction of being the largest Kumho distributor in Europe, and UK sales of the brand are rapidly growing – indeed, Micheldever reports that Kumho has become an important component of the company’s continued growth, growth that saw 2007 tyre sales reach six million units.
“We are delighted to have recruited someone of Jason’s quality and experience”, said Alan Baldwin, Micheldever wholesale director. “We have enjoyed massive success with the Kumho brand, and to find such an outstanding brand manager as Jason will be a significant benefit to MTS and the Ecsta Performance Centres network.”
Europe is currently a market of much activity for Kumho, and the manufacturer reports that its OE business here is growing, the latest addition to the company’s original equipment portfolio being the high performance Ecsta KU19 in size 245/45R18 for the new Mercedes-Benz Viano X-Clusive. Supply of this particular KU19 size has been added to the company’s global OE business, which includes as customers Chevrolet, Chrysler, Hyundai, Kia, Mitsubishi, Smart, SsangYong, VW and Daimler AG, to whom Kumho has supplied tyres for the A-Class model since last year. In the replacement market Kumho’s profile has also grown rapidly, thanks to the support of national distribution partner Micheldever Tyre Services, Northern Ireland distributor Modern Tyres and the ECSTA Performance Centre network, arguably one of the most successful retailing programmes of its kind.
Kumho’s new 18-inch rally raid tyre has completed its maiden event, with all four of the Bowler Nemesis 4x4s the company supplied completing the Baja Italia event. The Nemesis, a specialist V8-powered rally raid 4×4, had been due to make its debut on the Lisbon-Dakar Rally earlier this year, but the event was cancelled at the last minute, due to terrorist threats.
Four such Bowlers were entered for the Baja Italia (14-16 March), a rally centered around the dried river beds above Venice. These included the Kumho-liveried vehicle of Richard Hayward and Alex Cole; the second British entry of Greg Macleod and Oliver Ford; the French entry of Thierry Charbonnier and Quin Evans and the Belgian one of Joost Van Cauwenberge and Marc Devos.
Jim Milhaupt has been named national vice president of sales for Kumho Tire USA, succeeding Dave Hudrlik, who left the company. An eight-year veteran with Kumho, Milhaupt will oversee Kumho’s US sales efforts. He will be based at Kumho’s headquarters in Rancho Cucamonga, California. (Tire Review/Akron)
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