Kumho reopens North American tire factory

United States: Affected by the global financial crisis in 2008, the American subsidiary of Kumho tire had to cease operations in their North American tire plant. However, eight years after in 2016 the company successfully opened the tire factory based in Macon, United States in the month of May this year.

The USD450 million facility is located in Macon, which is situated near South East of Atlanta, where the company’s US headquarters have been recently shifted from Rancho. The newly built facility is expected to produce about 4 million tires annually comprising of passenger cars & light trucks.

“North America is home to one of the world's largest auto and tire markets at the factory's grand opening ceremony. We believed a production base on this crucial continent is a must if we are to significantly expand our presence in the market in our bid to become a top tire manufacturer”, said Park Sam-gu, chairman of Kumho Asiana Group,

From the new facility the company believes to target the original equipment market in the region primarily because of the presence of manufacturing plants of leading international brands in the region. The Macon plant has location advantage and is in close proximity with Hyundai Motor America’s Montgomery, Alaska and Kia Motor America Inc.'s West Point in Georgia.

According to a recent report published by TechSci Research, “United States Tyre Market Forecast & Opportunities, 2020’’, United States automobile market is the second largest automobile market in the world, with a motorization rate (including passenger cars and commercial vehicles) of more than 790 vehicles per 1,000 individuals, in 2014. The country’s tire market is dominated by the replacement tire segment that accounted for more than 80% share in the United States tire market in 2014. The commercial vehicle tire is the second most dominating segment in the United States tire market.

As per TechSci Research, the company is among the top players in the country as well as at global level and this strategic move would further facilitate the increase of market share of the company in the American tire market. The company plans the launch of a wide range product portfolio in this segment giving an added advantage to the customers to choose from variety of options. Further with major focus of the company on OE’s the company believes increasing their market share in the Original Equipment segment.