Kumho Tire considering building plant in Europe

Kumho Tire could open its first tyre plant in Europe within the next three years, with an investment of over one trillion South Korean won (c.€688m) being considered.

According to a recent article published in The Korea Economic Daily, Romania, Serbia, Portugal and Turkey are seen as potential locations for the factory.

Kumho has been supplying tyres to Europe from Vietnam where the company has easy access to raw materials such as natural rubber.

If the plant is built, Kumho would be able to increase its supply of tyres to premium European auto makers, with an annual capacity of 12 million units envisioned.

“We are reviewing Romania, Serbia, Portugal and Turkey as potential locations for the plant,” Kumho president and CEO Il Taik Jung told The Korea Economic Daily.

“We plan to complete the site selection process by the end of this year after checking subsidies and tax incentives from the federal and local governments.”