Kumho will build a plant in Poland
Kumho Tire has determined the location for its first European plant, and on December 1, the company announced that the new production facility will be located in the Polish city of Opole. The plant is scheduled to launch in August 2028, and in the first phase, its capacity will be 6 million tires per year, with plans to gradually increase this figure subject to corresponding market demand. The total investment amount will be $587 million.
Kumho notes that the European market accounts for 25% of the global tire consumption, making it a strategically important region for the company. Last year, Kumho received 26.2% of its revenue in the region, and the localization of production is expected to ensure stable sales growth in the future. The company also intends to expand its product range, focusing on high-value products such as large-diameter tires and UHP models, to simultaneously increase profitability and brand value.
In the global market, Europe also accounts for around 17% of tire sales in the original equipment sector, where many leading premium car manufacturers operate. However, Kumho previously had difficulties with supply stability and order fulfillment due to the lack of its own production in the region, and it is expected that the opening of the plant in Poland will expand the company's opportunities for cooperation with premium automotive brands.
"The European market holds a strategically important position in the global tire industry," said Kumho CEO Jeon Il-taek. "With the help of the new plant, Kumho Tire will stop relying solely on exports and will enhance its competitiveness, improving the efficiency of customer service and significantly improving the value of our premium brand."
Kumho evaluated the possibility of building a plant in several European countries, considering factors such as sales growth prospects, investment environment stability, offered incentives, and more, and after considering two final options, Poland was chosen. According to the company, the choice was made due to the presence of advantages in terms of logistics, human resources availability, infrastructure development, and the possibility of ensuring stable supplies to various European countries.
By the end of 2027, Kumho also plans to build a new plant with a capacity of 5.3 million tires per year in Hampyeong (South Korea), and a global production network will be created, combining Asia, Europe, and North America. In the future, the company plans to "consistently expand capacities in various regions in accordance with market demand to further strengthen its position in the global market."
Currently, Kumho owns eight plants in four countries - Vietnam, China, the USA, and South Korea - with a total capacity of around 65 million tires per year. Meanwhile, Kumho is the only one of the three largest Korean tire companies that does not have its own production in Europe, as Hankook and Nexen have previously launched plants in Hungary and the Czech Republic, respectively.
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