A spokesperson for Kumho Tire U.S.A. Inc., the U.S. subsidiary of South Korea-based Kumho Tire Co. Ltd., said the company has resumed its plan to open a production plant in the United States that had been suspended for six years.
In May 2008, Kumho broke ground in Bibb County, Ga., on a 5.7 million-square-foot facility that would cost $165 million and produce 2.1 million tires annually. The company went into a debt workout program in 2009 and postponed its plans for the plant.
Now the company has confirmed that a formal request for funds has been made to creditors, and it has asked its banks, including the Korea Development Bank (KDB), to approve a loan to build the plant; lenders held a meeting last week.
In 2009 the company reported operating losses of $117.3 million, which it managed to turn around into a profit in 2010 and has been generating operating profits each year since.
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Bob Ulrich was named Modern Tire Dealer editor in August 2000. He joined the magazine in 1985 as assistant editor, and has been responsible for gathering statistical information for MTD's "Facts Issue" since 1993.