Global tyre maker, Kumho Tyre has announced the construction of a new European tyre manufacturing plant as part of the company’s strategy to expand its global production footprint and accelerate growth across the European market.
The new European facility will be built at Opole in Poland and is scheduled to begin initial operations by August 2028, pending investment and regulatory approval. The first phase will support an annual production capacity of six million tires, with expansions planned according to market demand at a total investment of $AUD884 million (US$587 million).
Kumho evaluated several European countries, including Poland, as potential locations for the new plant, assessing factors such as site suitability, sales growth potential, investment stability, profitability, and available incentives.
After a thorough review of the final two candidate regions, the company selected Opole for its logistical advantages, skilled workforce, competitive infrastructure, stable access to the European market, and the attractive incentives offered by the Polish government.
Europe represents a market of substantial strategic importance for Kumho, accounting for roughly 25 per cent of overall global tyre consumption. In 2024 European sales made up approximately 26.6% of the total revenue.
Kumho says it will secure a stable foundation for sales expansion while strengthening its portfolio of high-value-added products (HVPs), including high-performance and large-inch tires by establishing a local European production base. This move is expected to boost both profitability and brand value.
Europe also comprises about 17 per cent of the global original equipment (OE) tyre market and is home to major high-end vehicle manufacturers.
Until now, the absence of a European production base had limited Kumho Tyre’s supply stability and lead-time competitiveness. The new facility is expected to significantly improve OE responsiveness and create new opportunities for collaboration with leading automotive brands.
President and CEO of Kumho Tyre, Taik Jung, the European market holds tremendous strategic significance in the global tyre industry.
“By establishing local production and supply capabilities in Europe, Kumho Tyre will strengthen its market competitiveness, local responsiveness and attractiveness to European vehicle manufacturers with the product quality for which the brand is renowned,” said Jung.
Meanwhile, Kumho Tyre also plans to complete a new factory with an annual capacity of 5.3 million tyres in Hampyeong, in its home country of Korea by the end of 2027.
The confirmation of the Polish site means Kumho Tyre is set to build a fully integrated production network spanning Asia, Europe, and North America.
The tyre maker will continue expanding its regionally optimized production capabilities through this network to meet market-specific demand and reinforce its global competitiveness.
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