The plant is part of its strategy to increase production capacity in anticipation of the growing demand in order to ensure product availability for customers and support the continued growth of partnerships in the North American market, said Il Taik Jung, President & CEO of Kumho Tire.
The company is currently operating eight manufacturing facilities located in South Korea, China, the US and Vietnam.
Earlier, China-based Jinyu Tire begun production of its first truck and bus radial (TBR) tires at its new radian tire manufacturing facility with increased capital of US$312 million in the southern province of Tay Ninh after nine months of construction. The new facility’s capacity will be up to two million tires annually.
Vietnam has its advantages, which are the availability of natural rubber resources, the increasing demand for vehicles, low-cost labor, and stable investment environment.
Many large tire companies such as Tokyo-headquartered Bridgestone, Taiwan-based Kenda Rubber, and Vietnamese Sailun chose Vietnam as a location to invest and operate their large-scale facilities here.