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
Hunter’s Revolution tire changer with WalkAway capability allows the operator to “walk away,” freeing him to perform balancing or other tasks during the longest portion of the tire changing action.
Article How Mounting and Balancing Will Change in 2019

Consumer preference for ever-larger, even more stylized wheels continues to trigger changes that are redefining how profits are realized in a tire store’s service bays.

BPI says Raybestos new and remanufactured calipers are plated to provide peak performance in even the harshest conditions.
Product BPI Expands Raybestos Caliper Coverage

Brake Parts Inc LLC (BPI) has added part numbers to its premium Raybestos Element3 new plated brake calipers and Raybestos R-Line remanufactured calipers.

News Bridgestone's 2018 Sales Matched 2017

Net sales for Bridgestone Corp. in fiscal 2018 were 3,650.1 billion yen, the same as the previous year; operating income was 402.7 billion yen, a decrease of 4%. Income was 381.1 billion yen, a decrease of 5%; and profits were 291.6 billion yen, an increase of 1%.

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!