Kumho to invest over US$300 million in its Vietnam plant
By Le Hoang
|A view of Kumho Tires’ manufacturing plant in Vietnam. The South Korean tiremaker will invest an additional US$305 million to expand its manufacturing plant in Vietnam – PHOTO: COURTESY OF KUMHO TIRES|
HCMC – South Korean tiremaker Kumho Tires has announced that it will invest an additional US$305 million to expand its manufacturing plant in Vietnam, enabling the tiremaker to double the facility’s production capacity.
The expansion project will be implemented in two years, starting from the third quarter of this year to the first quarter of 2023.
The plant, which is located in My Phuoc 3 Industrial Park in Binh Duong Province and has been operational for a decade, will be expanded by building more facilities on the vacant lot inside the plant’s compound.
Once complete, the expanded plant is expected to churn out at least 9.3 million tires per year.
Over the past years, Kumko Tire products manufactured in Binh Duong have been shipped to many parts of the world.
Kumho Tires is currently operating a number of tire manufacturing plants globally, but Vietnam is the only Southeast Asian country where the tiremaker has its facility. Aside from its plants in South Korea, Kumho Tires has also set up plants in China and the United States.
With an abundant amount of natural rubber, the surging demand for vehicles, low-cost labor, stable investment environment and other factors, Vietnam has been attracting major tiremakers to set up and expand their businesses.
Early this year, according to the Ministry of Planning and Investment’s Foreign Investment Agency, a Chinese-invested tire factory project in Tay Ninh Province had its investment adjusted upward by over US$312 million. Other large tire manufacturers such as Bridgestone, Yokohama Tyre, Maxxis and Sailun had entered the Vietnamese market, investing in large-scale projects.