19-05-2025
- Automotive
- Free Malaysia Today
Kumho Tire shares skid after weekend fire disrupts production
Fire authorities had extinguished 90% to 95% of the fire, but the blaze destroyed a majority of the western part of the Kumho Tire factory in Gwangju. (EPA Images pic)
SEOUL : Shares of Kumho Tire, South Korea's No 2 tyre maker, slumped 8% today after a massive fire suspended operations at its factory in Gwangju on Saturday, threatening to disrupt supplies to global automakers.
Fire authorities had extinguished 90% to 95% of the fire, but the blaze destroyed a majority of the western part of the factory in the southwestern city, media reports said.
A Kumho Tire spokeswoman told Reuters that it may have to revise down its target of raising its revenue by 10% to ₩5 trillion Korean (US$3.58 billion) this year due to the fire.
'The company, which has for years been trying to move its outdated factory in Gwangju, had not yet decided whether to rebuild the facilities,' the spokeswoman said.
'The factory complex in Gwangju has a capacity to produce 12 million tyres a year, accounting for nearly 20% of Kumho's global production capacity,' she said.
The company's customers include Hyundai Motor, Volkswagen Group and Mercedes-Benz.
'Kumho Tire is seeking to increase production at other factories to make up for lost output, though the scope for expansion may be limited as the plants at home and abroad were running at full capacity,' the company said.
