Kumho Tire will become the first Korean tire manufacturer to export its tire manufacturing technology to an overseas company.
Kumho Tire announced on September 27 that the company signed a contract to export its tire manufacturing technology to Pakistan’s Century Corporation at its headquarters in Seoul, Korea.
Century, a manufacturer specializing in batteries, including vehicle batteries, has been pushing for the establishment of a tire factory as a new business since May of last year. It has been looking for a partner that can transfer tire manufacturing technology to it. It assessed Kumho Tire's technology highly and proposed a technology transfer from the Korean company.
Kumho Tire decided to transfer technology for the whole tire manufacturing process to Century for 10 years until September 2028. It will transfer 28 standards on passenger and commercial vehicle tires. After the end of the first contract, the deal will be renewed every five years.
Under this contract, Kumho Tire will receive US$5 million for the technology transfer and 2.5% of sales in running loyalty.
Century is planning to expand its automobile related business through the establishment and operation of the tire manufacturing factory in Pakistan which has not had the tire industry. The new tire factory of Century aims to produce up to 500 million units after starting with one million units.
In this process, Kumho Tire will provide Century with all necessary know-how in tire manufacturing from design to standards, quality and evaluation by going beyond a mere technology transfer. The Korean tire manufacturer will also provide solutions to problems related to manufacturing including the training and education of Century employees.