(Akron/Tire Review) Kumho Tire USA Inc. has named Kelvin Oh as its new sales coordinator and general manager. In his new post, Oh is responsible for coordinating long-term strategy and sales plans for Kumho in the US and communicating market information to company headquarters in Seoul, South Korea. Most recently, Oh has been North America sales team leader based in Seoul.
The Korea Herald has reported that union workers at Kumho Tire Co. plants in South Korea have been “on a partial strike” since last week. The union workers are seeking a 9 per cent wage increase among the 52 “terms” they are demanding from the tyremaker, said the report. The partial strike is apparently part of broader job action at a number of major South Korean manufacturers, including Hyundai Motor, Ssangyong Motor, a number of oil and construction companies, and other major employers.
South Korea’s Kumho Tire Co. said today its net profit dropped 4.52 per cent in the first quarter from the previous year. Between January and March, net profit amounted to 14.92 billion won (£9 million), compared to 15.63 billion won a year earlier, said the company. Operating profit plunged 41.85 per cent to 25.39 billion won (£15.3 million) from 43.66 billion won a year ago, and revenue inched down 0.1 per cent to 428.52 billion won (£258.4 million) from 428.09 billion won, the tyre maker said.
(Akron/Tire Review) Confirming earlier reports, South Korea’s Kumho Tire Co. has announced that it will build a new $155 million tyre plant in Vietnam. According to the Korea Times, the new plant will come on-stream in 2008 with an annual capacity of 3.2 million tyres. Kumho signed a memorandum of understanding with Vietnam’s state-run builder Becamex in Binh Duong province to establish the wholly owned plant there. Construction on a 314,000-square-meter site just north of Ho Chi Minh City will begin in the second half of this year.
(Akron/Tire Review) Free trade talks between the US and South Korea have been confirmed, and if they are successful it would represent the largest free trade deal for the US since NAFTA was instituted.
(Akron/Tire Review) Hankook Tire Corp. has earned an optional equipment position on the 2006 Saturn Ion. The South Korea tyre manufacturer will supply Hankook H725A tyres in size P205/55R16H to GM for the vehicle. Hankook CEO Choong-hwan Cho said the new OE contract “has not only brought recognition of Hankook Tire’s technology within the advanced auto market, but will also result in a significant boost to exports and overseas brand recognition.”
The new deal with GM pushes Hankook’s non-domestic OE business past $100 million annually, the company said. Hankook currently supplies tyres to Ford, Volkswagen, Renault, Daihatsu and Mitsubishi, among others. Hankook’s overseas OE business will rise to 10 per cent of its total exports, the company said.
South Korea’s leading tyremaker Hankook Tire Co. said that first-half earnings rose more than 13 per cent from a year ago on increased exports and sales of high-end products. Net profit came to 114.4 billion won ($112.5 million) in the January-June period, up 13.1 per cent from a year earlier, the company said in a regulatory filing.
Beissbarth’s wheel aligner technology continues to be the top choice for motor sport, says Beissbarth UK, announcing that the ML8R Easy Wheel Aligner has been selected by the RML team for one of their busiest seasons.
The Chevrolet Lacetti WTC will tackle rounds three and four of the 2005 World Touring Car Championship in Magny-Cours, France. In Magny-Cours, the team will be closely watched by Nick Reilly, CEO of GM Daewoo Auto & Technology in South Korea. “We’ll do our best to put up a good show for the boss,” said Mark Busfield, project manager, Chevrolet WTCC, “we are now looking at qualifying in the top 15.”
(Akron/Tire Review) Few people know that South Korea’s Kumho Tire started as a taxi company back in 1946. To celebrate its humble beginnings, Kumho recently purchased two 1933 Ford sedans, similar to those that the now international firm began with.
The cars are on display at Kumho Asiana Group’s headquarters in Yongin.
(Akron/Tire Review) Hankook Tire Co.’s Optimo passenger tyre line made the list of South Korea’s “most powerful brands,” as determined by the Korea Management Association. According to a report by Chosun.com, the KMA surveyed the brand power of 2,576 brands in 164 industries to develop its list.
Yokohama Rubber Co. established Yokohama Tire Korea Co. Ltd., a wholly owned sales subsidiary, which will now handle all marketing and sales efforts in South Korea, Tire Review has reported. Previously, a local distributor represented Yokohama in that country. The subsidiary, established in mid-January, will begin operations this month, according to Yokohama Rubber Co. Yokohama said it hopes to reach $10 million in sales in South Korea within three years.
Kumho will launch initial public offerings (IPO) on both the South Korean and London stock exchanges at $15.58 per share, South Korea’s Dow Jones has reported. The tyre manufacturer expects to raise approximately $400 million (£210 million) in the sale. Kumho Tire Co. is said to be selling some 25 million shares in the simultaneous IPO. “A heavy flood of orders is expected to be placed before the offer close,” Dow Jones reported.
The news follows Cooper Tire & Rubber’s early January announcement that it would buy an 11 per cent share of the company, which amounts to 7.5 million shares.
The South Korea monopolies commission has said it will fine Hankook Tire and Kumho Tire 4.1 billion won (£2.1 million), Korean newspapers have reported. The Fair Trade Commission (FTC) said the two companies had raised the prices of products shipped to their distributors after consulting each other, violating the country’s fair trade act.
The fines break down to 2.2 billion won for Hankook and 1.9 billion won for Kumho. The ruling comes after both companies raised their prices by between five and 10 per cent in May 2004, on the pretext of higher international rubber prices. The FTC is reported to have said both companies have admitted to the violations and provided evidence, entitling them to reduced fines under the government’s leniency program.
Hankook Tire Company, South Korea’s largest tyre manufacturer has reportedly broken the half-a-billion unit mark after 63 years of tyre production, the Asia Pulse news service is reporting. “Hankook Tire can produce 1.68 tyres in one second, 481 times more than it could when it was established in 1942,” the company said. “Once the ongoing expansions of production facilities both at home and abroad are completed, we will be able to break the one-billion-unit mark before 2010.” Hankook Tire has two manufacturing plants in South Korea and two plants in China. Hankook is the world’s ninth largest tyre manufacturer.
South Korea’s largest tyre manufacturer, Kumho Tire, is planning a dual stock market listing in Seoul and either New York or London, the Financial Times has reported. Such a move would be worth more than $1.5 billion, according to the newspaper. The listing is expected to take place in the first half of next year.
Kumho is believed to have hired JPMorgan to manage the sale of at least a third of its shares in a move that could raise more than $500 million. One of the company’s major shareholders, the Military Mutual Aid Association (MMAA), owns 50 per cent of the company and stands to make a 40 per cent return on its original investment.
Kumho and JPMorgan have declined to comment.
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