Kumho Tire to invest US$10 mil to build a factory in Binh Duong
Kumho Tire, a subsidiary of Korea's Kumho Asiana Group, plans to invest around US$100 million in a factory in Binh Duong Province, Kumho Asiana Group chairman Park Sam-koo told the Korea Times last weekend.
He disclosed the plan on the sidelines of a business conference in Hanoi during a state visit by the Republic of Korea’s President Park Geun-hye.
This was the first time the group revealed its investment plan in Vietnam. The investment is expected to increase its Vietnamese plant's annual production from 3.3 million to 5 million tires.
"We are mulling over enlarging the facilities of our Vietnamese factory beginning next year. The amount to be spent is in the neighbourhood of US$100 million," Park said.
"We will strengthen our footing in Vietnam, where our affiliates in construction, airlines and express buses have operations."
Park regards Vietnam as a significant target market for Kumho and has been a strong proponent of cranking up the output of the country's Kumho Tire plant.
Experts said Park's decision made sense because boosting production in Vietnam would help meet rising demand for quality tires in China, just across the northern border.