Free Trade Talks With South Korea to Start
(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) 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 $500 million. One of the company’s major shareholders, the Military Mutual Aid Association (MMAA), owns 50 per cent of the company and stands to make a 40 per cent return on its original investment.
Kumho and JPMorgan have declined to comment.
Kumho Tire Co. Inc. is building a second tyre plant in China, next to an existing plant in Nanjing, that will double annual production capacity in China to 10 million units by 2008. The 130 million US dollar project will provide Nanjing Kumho Tire Co. Ltd. with additional capacity aiming to increase its share of the passenger radial market in China to 25 per cent, according to Kumho. In conjunction with the expansion project, Nanjing Kumho is setting up distribution hubs in northern China. The project is separate from a new plant Kumho opened recently in Pyeongtaek, South Korea, using proprietary automated technology.
Cooper Tire & Rubber Company’s Cooper-Standard Automotive has increased its ownership position in Jin Young Standard of South Korea from 49 to 90 percent and has changed the name of the company to Cooper-Standard Automotive Korea, Inc.This transaction will give Cooper-Standard Automotive a significant presence in Korea through a well-established company, and will facilitate the expansion of its automotive sealing operations in the growing Asian automotive market. Dug Soo Kim, president of Jin Young Standard prior to this transaction, will continue to head the company’s operations.
Kumho Industrial Co., Ltd. has announced that it has agreed to sell its Tire Business Unit for the sum of Won 1.428 trillion (US$ 1.2 billion). The Tire Business Unit will be acquired by a new joint venture company whose principal shareholder will be South Korea’s military pension fund, the Military Mutual Aid Association (MMAA). The new joint venture company is to be established during June with Won 500 billion (US$ 410 million) of paid-up capital. The MMAA will own 50 per cent of the company with Kumho Industrial taking a 30 per cent stake. The remaining 20 per cent will be distributed between several smaller investors.
Following the breakdown of talks between Kumho and the consortium led by JP Morgan Chase and Carlyle Group, concerning the sale of 80 per cent of Kumho’s Tyre Division, a media report from Korea says that talks are on-going with the South Korea Military Pension Fund to buy the company. Neither the fund, nor Kumho, nor the state-run Korea Development Bank, which the report says would provide funding for any deal, would comment on the report.
If you would like the latest news from the Chinese tyre industry in Chinese, visit our partner site TyrepressChina.com. Or click below to continue on Tyrepress.