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.