SEOUL, November 20 (AJP) - South Korea's Kumho Tire is reviewing the possibility of expanding its factory in southern Vietnam next year, nearly three years after initiating the second phase of expansion in 2021.
With this new expansion, the Korean tire manufacturer aims to increase the factory's annual production capacity to 17 million units or more by the first half of 2026, a 36 percent increase from the current capacity.
According to authorities in Binh Duong Province on Wednesday, Kumho Tire plans to invest US$300 million for the third phase of expansion next year, establishing an additional production line covering 56,000 square meters.
On Nov. 13, Kim Hyun-ho, general director of Kumho Tire Vietnam, met with Provincial People's Committee Chairman Vo Van Minh to request support for this project.
During the meeting, Kim said the investment would greatly benefit the regional economy. Vo Van Minh assured that the local government would support the project through relevant departments.
Kumho Tire said the investment plan is still under review. "While discussions on local investments took place during the meeting, specifics regarding investment amounts and annual production targets have not yet been finalized," Kumho Tire communications manager Kim Tae-hee said.
Kumho Tire initially invested $308 million in 2007 to build the Binh Duong factory. In 2021, the company allocated an additional $300 million for the second phase of expansion.
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