Kumho Tire will enhance its partnership with the Yokohama Rubber Co., Ltd., Kumho Tire said.
Both companies began to discuss the supply of original equipment manufacturer (OEM) parts, Kumho Tire said on May 17. The companies concluded a strategic coalition for research and technology last May, and are co-developing futuristic tires, Kumho Tire said.
An official at Kumho Tire said both companies are discussing supply scale, quantity, and supply start time, as well as the gradual increase of supply quantity in accordance with Chinese factory order trends and demand for OEM products. The supply will be immediately available this year if the partnership progresses fast, the official said.
Kumho Tire expects that the supply contract with Yokohama Rubber Co., Ltd will be helpful for improving the utilization of its Chinese factories, Kumho Tire said. As the U.S. decided this year to charge anti-dumping tariffs to tires made in China, which may decrease the capacity utilization of factories in China, Kumho Tire plans to increase the utilization of its Chinese factories by OEM supplying, which will enhance its coalition with Yokohama Rubber Co., Ltd, Kumho Tire said.
Kumho Tire recently decided to move to its factory in Nanjing, China by 2016, the company said. The company plans to build an advanced eco-friendly factory, which will high quality tires with advanced facilities and technologies in accordance with market demands, which will enhance the companies’ products made in China, it said.