Kumho targets US market, opens all-new tyre plant with 4 million units capacity in Georgia

Korean tyre manufacturer Kumho has officially opened its new production facility in Macon, Georgia, USA.

Construction of the plant began in May 2008, but was temporarily suspended as a result of the global financial crisis, before being resumed in 2014. Overall, Kumho has invested around $450 million dollars (Rs 2,842 crore) in the 80,000 square metre facility, which stands on 530,000 square metre site. The initial annual production capacity will be four million tyres, with the option of increasing output to 10 million over time.

The plant is equipped with a cutting-edge automated production system to ensure optimum quality and manufacturing efficiency. An advanced tracking system with RFID technology, plus laser-guided and unmanned plant vehicles will allow the fully automated movement of products and real-time production control in accordance with the ‘first-in first-out’ principle.

Speaking at the ceremony, the chairman of the Kumho Asiana Group, Sam-gu Park said: “North America consumes 22 percent of global tyre production, making it the largest market for such products in the world. A manufacturing base on this continent is a must if we are to succeed in our bid to become a top tyre manufacturer.”

The Macon facility is Kumho’s sixth production base outside of its native South Korea – the others being in China and Vietnam. It will primarily concentrate on the manufacture of regular passenger car, UHP and light commercial vehicle tyres (including run-flat products) in sizes of 17 inches and above.

Eighty percent of the production will be for OE fitment, there being manufacturing facilities for leading car brands as BMW, Daimler, GM, Hyundai and Volkswagen within a 200-mile radius of Macon County. A percentage of the vehicles equipped by tyres from the new Kumho factory will be exported to Europe.