Kumho Tire Co., South Korea’s No. 2 tire maker, is evaluating Poland, Serbia and Portugal as a potential site for its first plant in Europe as part of its broader push to expand supply to premium automakers with reduced cost and logistics risks, said its chief.
“We have narrowed down the candidate sites for our European plant to Poland, Serbia and Portugal and are actively evaluating them,” Kumho Tire Chief Executive Jung Il-taik told reporters at the launch event for its new tire Ecsta Sport in Yongin, South Korea, on Monday.
The company has been deliberating for over a year on where to build a production base to better serve luxury automakers in Europe, such as Mercedes-Benz, BMW and Audi.
It plans to invest more than 1 trillion won ($703 million) by 2027 to build its first plant in Europe.
Kumho Tire will decide the plant location after reviewing geopolitical and trade-related factors, including US tariffs of 25% on auto parts set to take effect in May, said Jung.
The company expects the new plant in Europe will boost Kumho’s original equipment (OE) tire supply to high-end auto brands.
The company currently operates eight factories in Korea, China, the US and Vietnam — but none in Europe, limiting its competitiveness in the region’s premium vehicle segment.
Shipping disruptions, including those through the Suez Canal and the Red Sea, have also increased costs and delivery times, prompting client concerns.
FOCUS ON ADVANCED TIRE TECHNOLOGY
Against rising global competition from Chinese and Indian manufacturers, the Korean tire major will focus on more advanced, high-margin products, said Jung.
It plans to direct more than 30% of OE tire output to premium automakers and generate over half of its replacement tire revenue from developed markets, said Jung, hoping to reposition Kumho brand as a global premium tire maker.
Kumho Tire reported its record annual sales of 4.54 trillion won in 2024. It targets 5 trillion won in revenue this year.
Write to Gil-Sung Yang at vertigo@hankyung.com
Sookyung Seo edited this article.
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