Kumho Gets Go-ahead To Build Vietnam Factory
(Akron/Tire Review) Kumho Tire Co. has received approval by regional government authorities to build a $380 million tyre plant in southern Vietnam’s Binh Duong Province. Production is expected to begin in March 2008, with an annual output of 3.15 million units, according to Kumho. Jongsun Sun, general director of Kumho Tire (Vietnam) Co. Inc., said the tyre maker would invest $155 million for the first phase of the project, which will begin next month.
Tyres produced at the plant will be sold locally and exported to the U.S., Europe and Southeast Asian countries. Kumho officials said the company also plans to build a rubber processing plant in the province. Kumho exchanged an investment memorandum of understanding with authorities in late March. The project is the biggest foreign direct investment project licensed in the province. Kumho already has three tyre plants in South Korea and two in China.