South Korean tyre maker Kumho Tire Co has shortlisted three countries in Europe for its first plant there and is said to be evaluating Poland, Serbia and Portugal as potential sites. It plans to complete construction of its first tyre plant in Europe in the next two years, as it looks to reduce logistics costs while strengthening its presence in the region’s premium tyre market.
It plans to invest more than US$703 million by 2027 to build its first plant in Europe.
The company has signed original equipment (OE) supply contracts with a number of European automakers in recent years, including Volkswagen Group, BMW and Mercedes-Benz.
“We have narrowed down the candidate sites for our European plant to Poland, Serbia and Portugal and are actively evaluating them,” Kumho Tire CEO Jung Il-taik was quoted as having said at a recent event.
The company expects that local production in Europe will help it win more OE contracts with high-end European auto brands.
Kumho currently has production has eight tyre manufacturing plants located in South Korea, China, the US and Vietnam, but so far none in Europe — which it says limits its competitiveness in the region.