Kumho To Build Second Chinese Plant
Far eastern news agency, Asia Pulse, has reported that Kumho Tire Co has signed a preliminary deal to build its second Chinese factory.
The proposed facility will be built on 300,000 square metres of land in the Tianjin Economic Development Area (TEDA) and will have a production capacity of five million units a year, a Kumho official said.
A formal agreement is not expected to be signed until March next year and the proposed construction will not be completed until early 2007.
When Kumho’s expansion plans have been completed the company’s production capacity in China could reach 18 million units per annum by 2007. According to Asia Pulse, the plant will mainly produce passenger car tyres and will cost around $185 million.
This will not be the first time that Kumho has managed two Chinese factories. The tyre manufacturer used to run another factory in Tianjin, before it sold the plant to Bridgestone in the spring of 2001. At the time this plant produced 3.5 million passenger and light truck tyres. This factory was run by Tianjin Kumho Tire Co Ltd after the sale the company became Tianjin Bridgestone Tire Co Ltd.