Kumho Tire eyes expansion of Vietnam plant
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South Korea’s Kumho Tire plans to invest $305 million to expand its plant in Vietnam.
The expansion, when completed in the first quarter of 2023, is expected to nearly double the plant’s capacity to 9.3 million tires a year.
“After considering our plans to increase exports to North America and potential U.S. anti-dumping duties, we came to the conclusion that increasing the capacity of the Vietnamese plant would be the best solution,” a Kumho executive said.
The $200-million plant in the My Phuoc 3 Industrial Park in the southern province of Binh Duong was built in 2008 to manufacture passenger car and light truck radial tires and is the company’s only plant in Southeast Asia.
In January, China’s Jinyu Tire invested $320 million to expand its factory in the southern province of Tay Ninh.
Questions & Answers
Q.What is the primary reason Kumho Tire is expanding its plant in Vietnam?
What is the primary reason Kumho Tire is expanding its plant in Vietnam?
Kumho Tire is expanding its Vietnamese plant to support increased exports to North America. They also considered potential US anti-dumping duties when making this decision, concluding expansion was the best solution for their strategy.
Q.When is the expansion of the Kumho Tire plant expected to be finished?
When is the expansion of the Kumho Tire plant expected to be finished?
The expansion of Kumho Tire's plant in Vietnam is anticipated to be completed in the first quarter of 2023. This timeline suggests the new capacity will become operational early in that year.
Q.What types of tyres are currently produced at Kumho Tire's Vietnamese plant?
What types of tyres are currently produced at Kumho Tire's Vietnamese plant?
The plant, located in My Phuoc 3 Industrial Park, manufactures passenger car and light truck radial tyres. It has been producing these specific types of tyres since its initial construction in 2008.
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