Kumho Tire’s labor union has urged Doublestar, the largest shareholder of the Korean tire company, to normalize the company's plant in China.
"At the Future Committee, the company’s management and labor will discuss the normalization of Kumho Tire's plant in China," the labor union said on March 14.
"The poor performance of the Chinese factory, which is operating at less than half of its capacity, has become a major obstacle to the normalization of Kumho Tire," the union added. “We believe that the management’s plan to increase the Chinese plant’s capital by 40 billion won and use it as operating funds will worsen the plant’s problems.”
"Increasing the plant’s capital without solving its problems fundamentally is like pouring water in a bottomless jar," the union said. "The 40 billion won should be used to improve its overseas sales networks, increase investment in research and development and upgrade production facilities."
"We had considered holding a press conference in front of the Chinese Consulate in order to make the Chinese government feel a sense of responsibility for Kumho Tire's normalization, too, as Doublestar is a state-run corporation in China, but canceled it and decided to discuss solutions at the Future Committee," a union official said.