Suppliers

Kumho Partners With Startup Tire Maker in Pakistan

Posted on October 11, 2018

Kumho Tire Co. Inc. will share its tire manufacturing technology with a battery maker in Pakistan that wants to build tires.

Jawed lqbal Siddiqui, the chairman of Century, on the left, greets Jong-Ho Kim, chairman of Kumho. 
Jawed lqbal Siddiqui, the chairman of Century, on the left, greets Jong-Ho Kim, chairman of Kumho. 
As part of the agreement, Kumho will be paid $5 million, plus 2.5% of Century Engineering Industries Pvt. Ltd.'s annual sales. The 10-year contract, effective from September 2018 through the last day of September 2028, requires Kumho to share technology from 28 tire products for both passenger and commercial vehicles. It entails design and quality control, as well as education and the ins and outs of running a tire manufacturing business.

Century makes Phoenix-brand batteries, and says it has the capacity to build one million batteries a year, and has original equipment orders for vehicles in Pakistan. The company wants to expand its business to include tire manufacturing.

According to a news release from Kumho, "Century will improve upon Pakistan’s limited infrastructure for tire manufacturing by investing in a tire plant with hopes to successfully expand its business in the automotive industry. Forecasting to starting with a million tires per year, Century is aiming to eventually grow its annual capacity to 5 million units."

Kim Jong-ho, CEO of Kumho, says, “Kumho has enjoyed a good reputation as a technology powerhouse. The deal will eliminate concerns caused by some issues over the years such as its acquisition by Doublestar and prove that Kumho’s quality and technology remain intact. We will leverage this deal as a starting point to establish technology the transfer as a new revenue source and develop a variety of business models that build on our expertise in tire manufacturing in order to further enhance our business.”

For information about Kumho's business in the U.S., visit www.KumhoTireUSA.com.

Related Topics: Agreement, Batteries, Kim Jong-Ho, Kumho Tire, technology

Comments ( 0 )
More Stories
News Pirelli, Trans Am and Sportscar Vintage Racing: Partners Through 2024

Pirelli Tire North America Inc. has renewed two key American racing agreements through 2024.

News CITEXPO 2019 Is Held in China, But Open to All Tire Markets

About 360 exhibitors will greet and meet with more than 12,000 professional buyers during the 2019 edition of China International Tire Expo (CITEXPO) Aug. 19-21.

ZC Rubber hosted 50 African tire dealers and partners for a one-day business meeting June 19.
News ZC Rubber Is Doing Big Business in Africa

Zhongce Rubber Group Co. Ltd. (ZC Rubber) hosted more than 50 of its partners and tire dealers in Africa at a dealer conference. During the meeting the company said sales in Africa have increased 51% in the last five years.

Be the First to Know

Get the latest news and most popular articles from MTD delivered straight to your inbox. Stay on top of the tire industry and don't miss a thing!