First Move
Kumho Tire, which completed financial restructuring in five years ago, is now setting out on large-scale restructuring and investment.
The company is expected to focus on its sales and marketing arms. Details of personnel transfers are to be made available early next month.
At the same time, it is going to accelerate projects abroad, like its plant construction in Macon, Georgia. The construction of the plant, in which Kumho Tires’ local subsidiary will invest 66.9 billion won (US$60.8 million), was resumed in September, and the company is planning to invest US$413 million there to increase its annual manufacturing capacity to four million tires.
Its plant in Nanjing, China is being relocated to a nearby industrial complex as well, which has been demanded by the municipal authorities carrying out an urban environmental management program. In addition, the company is likely to strengthen its strategic cooperation with Yokohama Tire Corporation by means of capital investment based on mutual shareholding.