SEOUL, March 10 (Yonhap) — Kumho Tire Co., South Korea’s second-largest tiremaker by sales, said Wednesday it will invest some 340 billion won (US$298 million) to expand its production facilities in Vietnam.
In a regulatory filing, Kumho Tire said that the investment will raise its tire production by about 3.8 million units, including 3 million for sedans and some 800,000 for trucks and buses.
The investment will begin in the third quarter of this year, and is set to be completed by the end of the first quarter of 2023, the company said.
The planned investment appears aimed at bracing for an increase in demand from North American markets and countering toughening trade conditions after it was assessed about 30 percent of additional tariffs in a preliminary decision by the U.S. Department of Commerce late last year.
The U.S. is expected to finalize the tariff agenda by May 13, and with the approval of the U.S. International Trade Commission (ITC), the additional duties would go into effect from July.