Kumho Expands Production in Vietnam

Kumho Tire is investing $300 million to increase the capacity of its tire plant in Vietnam, which will increase production by 23%. 

The plant in Binh Duong province was opened in 2007 and is currently capable of producing 13.1 million tires for passenger and light commercial vehicles per year. In 2021, Kumho already expanded production in Vietnam, and the launch of the third phase will increase the plant's capacity to 17 million tires per year. The new lines are expected to start operating in 2026. 

Kumho's current total capacity, which has eight plants, is 62.5 million tires per year, including 27.3 million in Korea, 18.8 million in China, 13.1 million in Vietnam, and 3.3 million in the US. 

In the third quarter of 2024, Kumho's operating profit was 140.2 billion won ($100 million), up 47.5% from the same period last year. Sales grew 14.1% to 1.115 trillion won ($800 million). The company notes that improved performance was helped by strong demand for high-margin products such as electric vehicle tires, SUVs, etc. 

Currently, Kumho is looking for a location to build its ninth plant, which is expected to be located in Europe, where two other Korean companies, Hankook and Nexen, already produce tires (in Hungary and the Czech Republic, respectively). At the same time, experts note that it will likely take a long time to make a decision on building a new production site, so the company is more likely to invest in its plants in China and Vietnam. 

Photo: vneconomy.vn.