MACON, Ga., -- Kumho Tires, one of the world's leading tire companies, today held a groundbreaking ceremony for its sixth overseas manufacturing plant, located in Bibb County, near Macon, Georgia.
Kumho Tires plans to invest a total of $165 million (USD) in this 5.7 million square foot plant, slated for completion by the end of 2009. The plant will feature state-of-art automated facilities that provide excellent quality control. With an initial capacity of 2.1 million tires for original and replacement equipment markets in the U.S. It is expected that the plant will provide more than 200 jobs when it opens.
Approximately 300 people attended the groundbreaking ceremony, including Kumho executives, State government officials and journalists. In addition to Governor Sonny Perdue, Georgia Department of Economic Development Commissioner Ken Stewart and Macon-Bibb County Chairman Charles Bishop were present as guests of honor. Also in attendance were Sam-Gu Park, Chairman & CEO of Kumho Asiana Group, and Sae-chul Oh, President & CEO of Kumho Tires, both of whom traveled here from Kumho's world headquarters in Seoul, Korea.
Mr. Oh said at the ceremony, "Establishing a production facility in the world's biggest tire market will help Kumho respond faster to the needs of customers in the region, while also reinforcing our cost and price competitiveness. We can now provide our efficient, high quality tires to U.S. consumers and an ever-growing number of major car makers faster than ever."
Mr. Oh added, "This plant will further strengthen Kumho Tires's global network, better positioning us to achieve our goal of becoming one of the world's top five tire companies by 2015."
With the completion of this new plant, the company will have a total of nine plants strategically positioned around the world. The company has three plants in Korea, four in China and one in Vietnam, which began operations in March of 2008. Kumho Tires plans to establish an additional plant producing truck bus radial tires in Nanjing, China.
By 2008, Kumho Tires's production capacity outside of Korea will reach 33 million tires, exceeding domestic production by 32 million tires. Its new plants in Nanjing and Georgia will increase its total production capacity to 77 million tires by 2009, boosting total overseas production to 60 percent of Kumho's total capacity.
The U.S. tire market is currently the world's largest with 45.1 million high performance tires sold every year. It is very important for Kumho Tires's strategic growth plans, as 35 percent of the company's overseas sales comes from this country. Sales of high performance tires have grown 53 percent since 2002, and these make up 23 percent of entire U.S. tire market. Kumho Tires holds a six percent market share for high performance tires in the United States. Kumho Tires's new plant in Georgia and its increased sales of its ultra high performance tires will bring the company closer to its goal of becoming one of the world's top tire companies in both sales and brand value.
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