Latest news with #GwangjuFire
Yahoo
20-05-2025
- Automotive
- Yahoo
Kumho tyre plant in Gwangju destroyed by fire
South Korean tyre manufacturer Kumho Tire Company Ltd has suspended operations at its main manufacturing complex in the south-western city of Gwangju, following a fire that destroyed major sections of one of the plants. The facility produced high-margin, premium tyres under the Ecsta sports brand. Deliveries to major automakers are expected to be disrupted as a result, with local reports suggesting that the fire destroyed around 60% of the production lines at one of the two main plants. A spokesperson confirmed that the company will likely need to revise down its 2025 revenue target, having previously forecast a 10% increase in global revenues to KRW 5 trillion (US$ 3.6 billion) for this year. The company's share price plunged 8% on the first day of trading immediately following the fire. The Gwangju plant had a production capacity of 12 million tyres per year, or 20% of the company's global capacity. The facility was considered outdated, however, and it remains unclear whether the company will rebuild the plant at its existing location, particularly given the recent hike in import tariffs in the US. According to local reports, the company had been looking to relocate the Gwangju operations to a new site in nearby Hampyeong, but with little progress made so far. The company recently announced it plans to complete construction of a new tyre plant in Europe in the next two years, to supply German automakers including Volkswagen group, Mercedes-Benz and BMW. "Kumho tyre plant in Gwangju destroyed by fire" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Free Malaysia Today
17-05-2025
- Automotive
- Free Malaysia Today
Production suspended at S. Korea's Kumho Tire plant due to fire
The local fire agency in Gwangju said the blaze could burn for several days. (EPA Images pic) SEOUL : Production at Kumho Tire's largest factory in South Korea was suspended due to a fire that broke out this morning, a company spokesman said. The factory in the southwestern city of Gwangju has the capacity to produce 12 million tyres a year, accounting for nearly 20% of Kumho's global production capacity, the spokesman said. One employee and two firefighters have been injured so far, the local fire agency said, with some 355 firefighters and 100 vehicles now deployed to the site. The fire could burn for several days, the agency said. Kumho Tire is seeking to increase production at one of its other domestic factories to offset lost production, the company spokesman said. The company's customers include Hyundai Motor, Volkswagen Group and Mercedes-Benz, according to its regulatory filing. Tyres from the factory in Gwangju are also exported, especially to Europe, the spokesman said. The fire allegedly broke out in the process of mixing chemicals with rubber, a highly inflammable material, media reports said.
