Reports out of Seoul, South Korea say that the country’s financial regulators have approved a deal where Korea Development Bank will acquire controlling interest in Daewoo Engineering & Construction Co. from Kumho. The transaction for a nearly 40 per cent share of the construction firm was put at $2.93 billion. There was no word when the deal might close. (Tire Review)
TRW Automotive Holdings reports the use of its new design LCCI (Low Cost Clamp-In) sensor for tyre pressure monitoring systems results in “significantly lowered costs for the system.” TPMS units featuring the LCCI are scheduled to be introduced in 2011 model year vehicles in the US.
For the sixth consecutive year, the Korea Management Association has ranked Kumho Tires top in the passenger car tyre category of its Korea Customer Satisfaction Index (KCSI) survey. The index is calculated based on customer evaluations of a number of variables, including overall satisfaction, factor satisfaction and repurchase intent. Kumho Tires’ score of 67.7 secured it first place, and the tyre maker highlights that its score in the repurchase intention category was 11.1 per cent higher than any competing company – evidence, Kumho says, of a “green light” for expanding domestic market share.
The Korea Times has reported the death of a 27-year old man employed as a subcontract worker in Hankook Tire’s Daejeon factory in South Korea. According to the September 27 published article, the death is the 16th amongst workers at Hankook’s Korean facilities since May 2006 and the deaths “are suspected to be related to the working environment.” The man, who is identified by the name ‘Lee’, is said to have had no previous health concerns and was employed to examine the surface of newly manufactured tyres.
Kumho Tire is betting that its new advertising campaign will help improve its image among consumers in South Korea. Thus far, the company said, the new softer, non-product focused ads have received positive reaction from consumers and the market.
On September 2, Kumho Tires celebrated its 50th anniversary in South Korea with the launch of a new product, the Majesty Solus. Some 200 guests attended a ceremony at the Shilla Hotel in Seoul to mark both the milestone and the new tyre’s release.
The bid for struggling South Korean 4×4 specialist Ssangyong submitted by Indian commercial vehicle manufacturer Mahindra & Mahindra Ltd has been given the green light. Should an arrangement between Mahindra and Ssangyong’s creditors fail to be finalised, however, the Ruia Group – parent company of Dunlop India and Falcon Tyres – is reportedly next in line. A total of six parties, including Renault-Nissan, expressed interest in acquiring the debt laden Ssangyong, the smallest of South Korea’s five car makers.
Pawan Kumar Ruia, owner of Dunlop India and Falcon Tyres, is said to be one of the bidders for SsanYong Motor. The South Korean vehicle manufacturer, which has been in court-led restructuring since early last year, was announced for sale this week. Bidders have until May 28 to submit a letter of intent. Sources reported by Calcutta, India based newspaper The Telegraph say Ruia is prepared to pay up to US$500 million for the company.
If Autosport has it right, Michelin is not far from a decision regarding a return to Formula 1, although not as a sole tyre supplier. According to the autosport.com website, the French tyre maker may make an announcement regarding this during April.
South Korea’s JoongAng Daily reports the production line at Kumho Tire’s Gwangju factory has stood idle since last week due to the unavailability of rubber. The company planned to secure emergency funding from its creditor to purchase additional supplies of the commodity, however this action has been delayed due to disagreements with the union representing Kumho Tire employees.
One of Kumho Petrochemical’s main businesses is the production of synthetic rubbers, much of which is supplied to the tyre industry. The company’s Ulsan plant in South Korea alone produces in excess of half a million tonnes of synthetic rubber per annum. To tackle the company’s recent economic crisis, in late January the Kumho Asiana division’s labour management negotiation committee met with the three main labour unions representing Kumho Petrochemical employees at its Ulsan rubber and plastic facilities and its Yeosu rubber plant and reached an agreement on a number of matters.
Nexen Tire America has put an 8 per cent price hike on all of its South Korea-produced tyres, according to Tire Review. Additionally, Nexen reportedly said it is shifting moulds for its SB702 line from its plant in China to its home plant in South Korea. The move, in reaction to the new 35 per cent added tariff on China-produced passenger tyres, will also necessitate a price increase for that line, Nexen said, but the exact amount had not yet been determined. Nexen reportedly said the 8 per cent increase is due to increased raw material costs.
Hungary has named Hankook Tire vice president Cho Hyun-Shik its honorary consul to South Korea in recognition of the company’s contribution to the country’s economic development and growth. Hungarian vice Foreign Minister Laszlo Varkonyi appointed Cho to this position on November 30 during a visit to Seoul in conjunction with Hungarian president Laszlo Solyom's four-day state visit to South Korea.
Kumho Tire has given word of arrangements to supply truck tyres to Daimler AG in its home market. As of late November the Mercedes Benz Actros will be sold in South Korea with Kumho tyres as OE. Due to a confidentiality clause, however, the company has not revealed how many tyres will be delivered to Daimler as part of the arrangement.
Some say their employers want blood from them, and those at Kumho in South Korea may have grounds to make such a claim. But don’t worry – it’s all for a good cause. Due to the recent H1N1 influenza scare the country has experienced a dramatic drop in blood donations, and this has led to a noticeable shortage of the precious fluid needed for transfusions. According to Kumho, upon hearing this news, all Kumho Asiana Group executives and employees stepped forward to donate blood.
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