In an August 18 news story, it was revealed that Hankook Tire Co. and some of its manufacturing plant managers were found guilty of failing to prevent a series of work-related deaths at Hankook facilities.
It is alleged Kumho Tire will lay off 18 per cent of its workforce during September. According to South Korea’s Dong-a Ilbo (East Asia Daily), the tyre maker has filed an application to this effect with the Gwangju Regional Labour Office, and the country’s Labour Ministry stated on August 17 that Kumho will dismiss 706 employees on September 16. In its application, the company cited a number of reasons for its decision, including aggravating business conditions, rising accumulated deficits, and a lower operating rate at its factories due to declining profits. On August 10 Kumho began offering early retirement packages to employees. Only 20 workers have so far applied to take such an offer, however.
Hankook Tire has is recalling a number of RA08 van tyre sizes in what the company describes as a “precautionary measure.” The sizes affected are: 185/75R16C, 205/75R16C and 215/75R16C produced at the company’s plant in Hungary between April 2008 and June 2009. According to the company, no other tyres produced in Hungary are subject to this action. Tyres supplied as OE to Ford’s Transit are said to similarly un-affected as they are produced at the company’s Deajon plant in South Korea.
Consumers who use the affected tyres are asked to immediately contact their local tyre dealer. Further consumer information will be offered at Hankook Tire Europe’s website (www.hankooktire-eu.com). Alternatively, consumers and the trade are being directed to contact their national representatives.
Kumho Tire has announced the appointment of Jong Ho Kim (J.H. Kim) as its new CEO and president. He will be based at the company’s headquarters in Seoul, South Korea. Mr. Kim has held numerous sales and marketing positions since joining Kumho in 1976 including nine years in the USA, initially as general manager, then managing director and finally as the vice president of sales for the company’s American operations. He then assumed the role of executive vice president of sales and marketing for the parent company back in Korea.
Kumho has announced that its three tyre plants in South Korea will be closed until Monday 20 April following a sustained period of slowing sales. The measure is designed to keep company inventories under control, according to a press release.
Following four years’ of development South Korean company Teong Kim Enterprises has announced the successful testing of a new tyre design that it says “significantly improves” performance in wet conditions. During a press conference in Seoul on April 1, company representatives outlined the fundamental technology used in the experimental ‘wTyre’, and the potential benefits tyre manufacturers may reap from it.
A decision taken by the European Commission on March 2 means that the way is clear for JPMorgan Chase & Co.’s ‘One Equity’ private equity unit to take on sole ownership of carbon black manufacturer Columbian Chemicals. The former minority shareholder will pay US$150 million for a 66.75 per cent chunk in the Columbian Chemicals, which is currently owned by South Korea’s DC Chemical Co. Ltd. The South Korea based Columbian Chemicals facilities will, however, continue to be owned and operated by DC Chemical.
Equity Investment company One Equity Partners has agreed to pay $150 million to acquire the remaining 66.75 per cent stake in Columbian Chemicals Holding LLC that it does not already own. Columbian Chemicals, based in the US state of Georgia, manufactures carbon black for use in tyres and plastic products.
The payment of bonuses to approximately 3,000 Kumho Tire employees in South Korea have been delayed due to, according to a company official, the “company’s liquidity problem.” South Korean vehicle manufacturers are currently experiencing a sharp decline in sales, the affects of which have been passed onto tyre makers.
The annual bonus payment, said the official, has been indefinitely postponed, however the company “will make its utmost efforts” to pay the bonus of 2.5 million won (£1,350) per worker.
South Korea’s Kumho Tires has appointed Byung Choo Kim to the newly created position of president of Sales and Marketing. BC Kim, a BSc graduate from Sopang University, commenced his career at Daewoo Industrial in 1978. A variety of international roles for the Daewoo Corporation then followed before he joined Kumho as head of its China Office in January 2007.
On November 24th, Kumho Tire announced the winners of the 10th ‘Kumho Tire College Ad Contest’, a competition it says is held with the aim of inspiring passion and creativity among college students in South Korea. This year’s contest attracted more than 3,000 entries, from which 12 winners were selected.
In addition to nurturing passion and creativity in college students, Kumho Tire says that its advertisement contest has also played a vital role as a communication channel that has aided the company in understanding the needs of consumers. The contest themes range from corporate brand and Manchester United sponsorship advertisements to corporate public relations about the company’s environmental protection activities, with a focus on delivering a social message.
According to South Korea’s Yonhap news service, the production of truck and bus tyres began today at Kumho Tire’s new facility in China. The US$100 million plant in Nanjing has a capacity to produce 300,000 bus and truck tyres per annum, the company said in a statement.
The Kumho Asiana Group has held its ‘5th Kumho Asiana Group Technology Awards Ceremony’ in South Korea. The ceremony in Seoul was attended by some 150 executives, including Kumho Asiana Group chairman Sam-Koo Park. This year the company’s technology award was presented to three employees from the Kumho Petrochemical rubber research team, along with team director Young-Hoon Koh. In total, ten teams were honoured with awards at the ceremony.
South Korea’s second largest tyre manufacturer, Kumho Tire, said on October 21 that its third-quarter net loss had increased from the previous year, the result of rising raw material prices and a tyre surplus. The AsiaPulse news service reports that Kumho recorded a loss of KRW 30.8 billion (£13.6 million) in the three months ending September 30, compared with a net loss of KRW 10.7 in the corresponding quarter of 2007.
The Korea Times reports that four Hankook Tire employees have been named victims of a chemical used at a company facility between 1999 and 2003. In an article titled ‘Hankook Tire Cornered’, the South Korean English-language daily says that the government’s acknowledgement, according to lawmakers, shows a “possible relation between the solvent HV-250, a non-benzene compound, and the workers’ health.”
One of the victims is said to have contracted peripheral neuropathy after he was exposed to the solvent, stated the Korea Occupational Safety and Health Agency on October 13. The agency said another 48 year-old worker’s acute leukemia seems to have also been caused by his 20 years of being exposed to a solvent the company previously used. This particular substance formerly contained benzene.
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